The US-based startup Arbol, in collaboration with The Institutes RiskStream Collaborative, has unveiled a groundbreaking parametric insurance platform driven by artificial intelligence (AI) and blockchain technology. The recent press release announced that the “dRe Lifecycle Dashboard” is live and in production, marking a crucial development for parametric reinsurance.
Parametric insurance compensates policyholders for specific events, such as floods or storms, based on the event’s magnitude. The dRe Lifecycle Dashboard is a smart contract-based system that promotes transparent parametric loss calculations for severe storm catastrophe transactions. It utilizes validated weather data from the decentralized climate data network dClimate and Chainlink’s decentralized oracle network to trigger smart contracts based on wind speed and location.
Automation through the platform, from claim initiation to notifications and loss calculations, ensures rapid payouts and enhanced transparency. Additionally, Arbol’s risk framework and AI-powered pricing platform facilitate efficient underwriting for the system.
The platform’s flexibility extends its potential applications to various risks, such as rain, heat, or wind, as well as the use for non-parametric insurance event notifications. This adaptability positions it as a game-changer in the insurtech landscape.
Arbol and The Institutes RiskStream Collaborative, the insurance industry’s largest blockchain and emerging technologies consortium, jointly developed the blockchain-based platform. It integrates the Kaleido platform and RiskStream’s Canopy platform, thus offering an end-to-end reusable blockchain framework.
According to Sid Jha, Arbol’s Founder and CEO, dRe revolutionizes the management of severe storm catastrophe transactions by delivering rapid, auditable, and dependable payouts. The use of blockchain technology and smart contracts, he claims, will reshape the parametric (re)insurance landscape dramatically. Although the platform currently focuses on severe storm events, its design could pave the way for adaptation to other perils.
Patrick Schmid, President of The Institutes RiskStream Collaborative, shares the same vision and anticipates more applications to emerge from this platform. The transition of this parametric (re)insurance application to production reveals blockchain’s potential in the insurance industry, says Schmid.
Arbol and The Institutes RiskStream Collaborative formed a strategic partnership in May, intending to exhibit blockchain and decentralized data storage’s potential for creating value in the insurance industry. The initial goal was to develop an innovative, blockchain-driven parametric solution capable of improving collaboration and trust among participating parties. The long-term vision includes the possibility of extending the platform into non-parametric insurance solutions for reinsurance programs by harnessing the power of smart contracts and distributed ledger technologies (DLTs).
Source: Cryptonews
