# Arbol

Arbol is a Climate Risk Coverage Platform based in New York, United States.

## Overview

- **Organization type:** Climate Risk Coverage Platform
- **Headquarters:** New York, United States
- **Region:** North America
- **Address:** New York, NY, United States
- **Founded:** 2018
- **Assets under management:** Undisclosed
- **Website:** arbol.io
- **LinkedIn:** https://www.linkedin.com/company/arbol-inc

## Regulatory record

- **Reports private funds:** No

## About

Sid Jha founded Arbol in 2018 after a stint at a commodities hedge fund convinced him the traditional insurance model fails to address climate volatility. The New York-based firm constructs parametric weather contracts that pay out automatically when an objective data trigger is hit — no adjuster, no dispute. Arbol's origin sits at the intersection of big data, climate science, and structured finance, not within the insurance establishment. Arbol structures weather-linked financial instruments for producers exposed to temperature, precipitation, and wind variability. The firm works across agriculture, energy, and supply-chain logistics, offering protection through a proprietary platform that ingests satellite and sensor data. Confirmed counterparties include grain elevators in the US Midwest and wind-farm operators in Europe. Arbol operates both an insurance entity and an SEC-registered swap execution facility, letting clients choose the regulatory wrapper that fits their capital strategy. In May 2024, Arbol secured $60 million in Series B funding co-led by Giant Ventures and Opera Tech Ventures to scale its parametric insurance marketplace (per Arbol, May 2024). The firm also operates the Arbol Climate Analytics platform, which serves institutional clients looking to stress-test portfolios against climate scenarios. Jha has publicly stated an ambition to build a public-company-grade data infrastructure for climate risk transfer, though team size and total deployment remain undisclosed. Arbol's structural differentiator is its dual-track regulatory architecture: an admitted insurance carrier domiciled in the US alongside a CFTC-regulated swap facility. This lets a single climate-risk trade be booked as either an insurance contract or a financial derivative, a flexibility almost no competitor offers. The firm competes less with traditional re/insurers and more with the opaque over-the-counter weather-derivative desks at large banks, using automated pricing and a digital distribution layer those incumbents lack.

## Sectors

- ClimateTech
- InsurTech
- AgriTech & FoodTech

## People

- Sid Jha — Founder & CEO

## Questions

### How does Arbol's parametric insurance model differ from traditional crop insurance?

Traditional crop insurance requires a claims adjuster to visit a farm and assess damage after a loss event. Arbol's parametric contracts pay out automatically when an agreed-upon data trigger is met — such as rainfall below a defined threshold over a specific period at a specific weather station. This removes the adjustment lag and the potential for disputes, though it introduces basis risk: a farmer can suffer a loss without the data trigger firing. The tradeoff is speed and transparency for a less precise hedge.

### What regulatory structure does Arbol use to offer weather protection?

Arbol operates through two regulated entities. Arbol Insurance Services distributes parametric insurance products through an admitted carrier, while Arbol's SEC-registered swap execution facility allows institutional clients to trade weather derivatives as financial instruments. This dual structure means the same economic exposure can be packaged as an insurance contract for a corporate buyer or as a derivative for a hedge fund or bank, giving the firm a flexibility that pure insurers lack.

### What industries does Arbol serve with its weather products?

Arbol designs weather-linked contracts for agriculture, energy, and supply-chain operators. In agriculture, the firm covers row-crop farmers exposed to drought and excessive rain during growing seasons. In energy, Arbol structures wind and temperature hedges for renewable-power producers whose revenue fluctuates with weather patterns. The firm has publicly cited counterparties including grain elevators in the US and wind-farm operators in Europe.

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- [Lilypad Insurance](https://altss.com/profile/lilypad-insurance-company)

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Last updated: 2026-06-03T20:00:00.000Z

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