Arbol Inc. and Beazley PLC on Thursday launched a series of parametric hedges in the U.S. designed to help companies mitigate climate risk.
The facility provides up to US$5 million in coverage limits and is led by Beazley, supported by Tokio Marine Kiln Insurance Ltd. and Nephila Holdings Ltd. and brokered by Guy Carpenter & Co. LLC, a unit of Marsh LLC.
Available parametric coverages include low precipitation to protect against drought, excess snow to cover the frequency of high snowfall days, and high wind to protect against extreme gusts.
Weather indices are used to develop tailored coverage using triggers based on the risk and the policyholder. Coverage is available on a surplus basis and is aimed at agriculture, energy, entertainment companies and those focused on environmental, social and governance issues.
Arbol Insurance Services LLC has been appointed Lloyd̵7;s of London coverholder for the program.