Arbol Raises $60M in Series B Funding


Arbol, a NYC-based climate risk solutions provider, raised $60M in Series B funding.

The round was led by Giant Ventures and Opera Tech Ventures with participation from Mubadala Capital.

The company intends to use the funds for global expansion and investment in property and casualty (P&C) and home insurance business lines in the U.S. and internationally.

Led by Founder and CEO Sid Jha, Arbol provides climate risk management solutions which combine Its technology ecosystem combines automated structuring, AI-powered underwriting, pricing tools, and platforms for agents and brokers. Through leveraging global datasets for objective loss triggers, the company aims to broaden the adoption of parametric products and pioneer the concept of climate risk as a tangible, investable asset class. Arbol plans to deepen its work with entities in the financial sector, such as banks, which are facing new challenges with climate risks, both for their internal risks and client needs.

The company transacted┬á$250m┬áin gross written premium (GWP) in 2023, with growth in its renewable energy and reinsurance businesses. Arbol Insurance Services (AIS), a wholly owned subsidiary of Arbol,┬ábecame an approved Lloyd’s of┬áLondon┬ácover holder┬áin May last year. Arbol recently announced the launch of┬áLilypad Insurance, a newly established carrier dedicated to serving the insurance needs of homeowners and property investors in coastal areas. Lilypad received its certificate of authority from┬áLouisiana┬áand has begun operations in the state. Subsequently, it announced the acquisition of Centauri Specialty Insurance Company and Centauri National Insurance Company, subject to regulatory approval. Lilypad Insurance will enable Arbol to grow the total addressable market of parametric insurance through hybrid product distribution while addressing the need of a growing coverage gap in coastal communities.

Commenting on the news, Sid Jha said: “Our ambition extends from empowering the world’s smallest subsistence farmers in underserved regions to securing the assets of the world’s largest corporations, ensuring they all have access to unmatched protection amidst the unpredictability of climate change. Our approach is not just about offering insurance; it’s about creating a safety net that spans the entire spectrum of economic participants affected by climate volatility.