Arbol, a leading global climate risk coverage platform, in collaboration with The Institutes RiskStream Collaborative, the largest blockchain and emerging technologies consortium in the insurance industry, announced dRe is live and in production. As the first on-chain data calculation tool for reinsurance, the blockchain-powered platform is a significant milestone for parametric reinsurance, highlighting the tangible benefits of Arbol and RiskStream’s strategic partnership announced in May. In an industry-first, dRe streamlines parametric loss calculations and promotes transparency in the (re)insurance sector.
Arbol’s dRe Lifecycle Dashboard is a smart contract-based system that enables efficient and transparent parametric loss calculations for severe storm catastrophe transactions. Leveraging validated weather data from leading decentralized climate data network, dClimate, and Chainlink’s industry-standard decentralized oracle network, the platform triggers a smart contract based on wind speed and location for specific peril events. The system automates claim initiation, notifications, and loss calculations, resulting in rapid payouts, streamlined data flow, and heightened transparency.
“dRe is a critical advancement in Arbol’s pursuit to enhance transparency and efficiency in the insurance sector,” said Sid Jha, Founder and CEO of Arbol. “By leveraging blockchain technology and smart contracts, we are fundamentally reshaping the landscape of parametric (re)insurance. This platform is not just a step forward; it’s a leap. It transforms how we manage severe storm catastrophe transactions by providing rapid, auditable, and reliable payouts. And while our current focus is on severe storm events, the system’s design has far-reaching implications, paving the way for adaptations to other perils.”
The platform was developed in collaboration with The Institutes RiskStream Collaborative, employs technologies by Kaleido, and leverages RiskStream’s Canopy platform—the industry’s first end-to-end reusable blockchain framework.
“Transitioning this parametric (re)insurance application to production on the RiskStream Canopy platform represents a pivotal demonstration of blockchain’s potential in the insurance industry,” said Patrick Schmid, Ph.D., President, of The Institutes RiskStream Collaborative. “We foresee this as the first of many applications we bring to production for the benefit of RiskStream members, the industry, and the public we serve.”
dRe’s flexible design enables its adaptation to various perils such as rain, heat, or wind, and the potential for non-parametric insurance event notifications, marking it as a potent game-changer in the insurtech landscape. As dRe continues to evolve and garner recognition, its fundamental values of transparency, efficiency, and collaboration remain steadfast, heralding a promising future for blockchain applications in the insurance industry. With early successes and an enthusiastic reception from the market, Arbol and The Institutes RiskStream Collaborative remain committed to fostering innovation and setting new standards for parametric reinsurance.
SOURCE: PRNewswire