Startup Arbol Debuts AI and Blockchain-Driven Climate Insurance Platform – How Does it Work?
US-based startup Arbol has revealed a parametric insurance platform powered by artificial intelligence (AI) and blockchain, developed in collaboration with The Institutes RiskStream Collaborative.
"dRe is live and in production," said a press release on Tuesday.
It's described as the first on-chain data calculation tool for reinsurance and "a significant milestone" for parametric reinsurance.
Parametric or index-based insurance is a type of insurance contract that insures a policyholder against the occurrence of a specific event, such as floods or storms, by paying a set amount based on the magnitude of the event.
The announcement said that,
"dRe Lifecycle Dashboard is a smart contract-based system that enables efficient and transparent parametric loss calculations for severe storm catastrophe transactions."
The platform utilizes validated weather data from the decentralized climate data network dClimate and Chainlink's decentralized oracle network. It then "triggers" a smart contract based on wind speed and location for specific hazardous events.
The system automates "claim initiation, notifications, and loss calculations, resulting in rapid payouts, streamlined data flow, and heightened transparency," the team behind it said.
dRE also leverages the Arbol risk framework and pricing platform, powered by artificial intelligence algorithms "for efficient underwriting," a company spokesperson told CoinDesk.
The platform's design is flexible, thus allowing for its adaptation to various dangers including rain, heat, or wind, and the potential for non-parametric insurance event notifications.
All this makes it "a potent game-changer" in the insurtech landscape, its creators opined.
The blockchain-based platform was developed by
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