Arbol

Designing a parametric insurance solution for agriculture starts with your risk, region, and season. From there, it's all about tailoring coverage to what actually matters: — The conditions that could impact your operation — When and where they’re most likely to hit — And how much protection you need Once your solution is in place? Let’s just say the payout path is... a lot more direct. https://lnkd.in/eyQWXQ8m

U.S. agriculture is facing more uncertainty than ever. Yield volatility from extreme weather, pests, and shifting climate patterns puts financial pressure on growers, cooperatives, and processors alike. Traditional insurance plays a key role in managing risk, but it doesn’t always account for regional production shortfalls that impact entire supply chains. That’s where data-driven solutions can help. Our Area Yield Program (AYP) provides automatic, transparent payouts when county-wide yields fall below a set threshold—helping businesses stay resilient in unpredictable seasons. See how AYP works and how it supports agricultural risk management.

According to Bloomberg, over 60% of major banks now factor climate risk into their credit assessments, yet only 10% believe their current models fully capture the financial impact of extreme weather. With insured losses from climate-related disasters topping $100 billion annually, traditional risk assessments may not be enough. How is your industry adapting to a world where climate volatility is a financial risk, not just an environmental one? https://lnkd.in/eTipkhuS

Extreme weather has driven $118.75 billion in crop insurance payouts over the past two decades, but specialty crop producers still face coverage gaps. AI and parametric models are enhancing traditional insurance by providing: - Faster payouts when predefined weather conditions occur - Customized coverage tailored to specific climate risks - AI-driven insights that improve forecasting and risk modeling As climate risks evolve, so should risk management strategies. Learn how AI and parametric insurance are working with traditional policies to build a stronger safety net for farmers. https://lnkd.in/eZ-AXf93

Drought fuels fire. Fire weakens land. Then come the floods. Extreme weather events aren’t happening in isolation—they’re compounding, driving billions in damages. Yet, many risk models still assess them separately. How should insurers and businesses rethink climate risk? https://lnkd.in/efRd486T

Home insurance costs are rising, but coverage is shrinking. Climate-related housing damage hit $182.7B last year, forcing insurers to scale back in high-risk areas. Yet, most policies don’t account for climate resilience upgrades that reduce risk. Parametric solutions offer a faster, more transparent way to hedge against extreme weather—filling gaps where traditional insurance falls short. Is the industry ready to adapt? #Insurance #ClimateRisk #ParametricSolutions https://lnkd.in/edY9DXFS

Did you know? Freeze events have caused over $120 billion in economic damages over the last 40 years. With cold snaps affecting industries from agriculture to energy, more companies are exploring ways to manage these unpredictable risks. How are you preparing for freeze-related challenges? #ParametricInsurance #ClimateRiskManagement

Specialty crop liabilities have surged from $1B to $23B, yet federal insurance subsidies remain uneven—commodity crops receive up to 80%, while specialty crops get just 20% or less. Additionally... - Payouts can be slow, while extreme weather moves fast - Coverage isn’t always designed for high-value crops like berries, hemp, and herbs Parametric solutions complement traditional insurance by offering: - Faster, data-driven payouts - Targeted protection for specific weather risks - Customizable coverage for high-value crops Learn how producers are bridging the coverage gap: https://lnkd.in/eScugNPs

Texas cotton seed producers know that weather directly threatens their bottom line. For West Gaines Seed, Inc., volatile weather patterns and yield fluctuations posed financial risks that traditional insurance couldn’t fully address. With up to 30% annual yield volatility and increasing climate unpredictability, they needed a data-driven solution that would provide financial stability and uninterrupted client support. With Arbol’s Area Yield Program (AYP), they secured: - $5M in financial protection against low cotton yields - Fast, objective payouts triggered by USDA county-level yield data - Customized coverage tailored to regional risks and irrigation practices - A scalable safety net to maintain operations even in difficult years Parametric solutions are reshaping how agribusinesses protect themselves from climate risk. See how West Gaines Seed built long-term resilience: https://lnkd.in/eB-62WxF

New AI-driven forecasting models will battle-test their skills against some intense winter weather—an exciting (and daunting) milestone for the entire climate and insurance space. As highlighted in Axios, these AI tools can drastically speed up prediction times, but many experts remain wary of the ‘black box’ factor. At Arbol, we’re watching these developments closely. More accurate, faster forecasts—whether from physics-based models or AI—are critical to how we structure parametric coverage and build resilience for farmers, coastal businesses, and renewable operators. The real question is how quickly the industry can validate and integrate these AI advances into everyday decision-making, so policyholders receive clearer, more confident risk assessments. Would love your thoughts: How do you see AI-driven weather models affecting everything from day-to-day forecasting to long-term climate risk management? https://lnkd.in/eMVn94XE