How to Streamline Parametric Loss Calculations with Blockchain-Powered Reinsurance
As an insurance executive, you know that the industry is constantly evolving. One of the latest advancements is the use of blockchain technology to streamline parametric loss calculations. Arbol, a leading global climate risk coverage platform, has collaborated with The Institutes RiskStream Collaborative to create dRe, the first on-chain data calculation tool for reinsurance. This blockchain-powered platform is a significant milestone for parametric reinsurance, highlighting the tangible benefits of Arbol and RiskStream’s strategic partnership.
Introduction
dRe 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.
How to Use dRe
Here are the five steps to using dRe:
- Access the dRe Lifecycle Dashboard, which is a smart contract-based system.
- Input the necessary data, including wind speed and location for specific peril events.
- The system will trigger a smart contract based on the data inputted.
- The system will automate claim initiation, notifications, and loss calculations.
- Receive rapid payouts, streamlined data flow, and heightened transparency.
Benefits of dRe
dRe is a critical advancement in Arbol’s pursuit to enhance transparency and efficiency in the insurance sector. By leveraging blockchain technology and smart contracts, dRe is 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.
Conclusion
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. With Riskwolf, you can turn real-time data into insurance. Using unique real-time data and dynamic risk modelling, we enable insurers to build and operate parametric insurance at scale. Simple. Reliable. Fast. To learn more about dRe and how it can benefit your insurance company, get in touch with Riskwolf today.