Arbol’s Framework for Building Trust in Traditional Industries

Arbol’s Framework for Building Trust in Traditional Industries

Breaking into traditional industries requires more than innovative technology. In a recent episode of Category Visionaries, Arbol founder Sid Jha revealed how they won over conservative insurance clients by focusing on fundamental industry problems rather than technological disruption.

Understanding the Industry’s Pain Points

Instead of leading with blockchain or AI capabilities, Arbol focused on a core industry problem: “The way insurance works is you have damage. Some guy comes to your farm or business and makes a subjective assessment, and that process is filled with delays, disputes and sometimes fraud. And so if you’re a business, it can take you sometimes a year plus to collect your insurance check.”

Starting Small to Build Credibility

Rather than attempting to revolutionize the entire industry at once, Arbol started with a single $3,000 transaction. As Sid recalls, “I remember it taking almost six months to arrange the first transaction, which was a grand total of $3,000 in gross revenue.” This methodical approach helped them understand the market’s needs and build credibility.

Bridging Industry Gaps Through Experience

Sid’s background in commodities trading helped bridge the finance-insurance divide: “When you think about commodities, it’s oil and gas, corn and beans, livestock, metals. I love the variety of it. I love the physical aspect of it. It’s not just an abstract set of numbers. It is so tied to the real world.”

Solutions Over Technology

When presenting their solution, Arbol focuses on outcomes rather than technical implementation: “What we do is with data, right? So the payouts are linked to data. That’s what parametric insurance is. So it could be crop yield data, it could be wind speed data, it could be temperature data. If it’s too hot for 20 days in a row, here’s your payment. No ambiguity.”

Building Trust Through Results

Their approach emphasizes practical benefits: “The payout is one week after the data comes out and you’re done.” This focus on solving real business problems helped them grow from that initial $3,000 transaction to $171 million in gross revenue within three years.

Avoiding Industry Hype

Arbol deliberately stays away from tech industry trends. As Sid notes, “We have really stayed away from a lot of the hype that kind of tends to saturate the blockchain space.” Instead, they focus on building practical solutions that address specific industry needs.

Understanding Market Complexity

Their approach acknowledges the complexity of insurance transactions: “When you think of an insurance contract, there are probably seven plus intermediaries involved in many of them from the brokers, to the agents, to the insurance company, to us, to the risk capital provider. Reinsurer, there might be multiple reinsurers.”

The Future Vision

This trust-first approach positions Arbol to create what Sid describes as “a whole new asset class at a scale that has not been done before.” By focusing on industry problems rather than technological disruption, they’re building the foundation for long-term transformation.

For founders entering traditional industries, Arbol’s journey offers a crucial lesson: sometimes the best way to drive innovation is to focus first on building trust through practical solutions to industry problems. The technology can work its magic in the background while you focus on delivering real value to customers.