| Frequently Asked Questions
Questions
Answers
What is GuaranteedWeather.com, and what types of businesses can
benefit from it?
GuaranteedWeather.com is an online
weather-risk management portal. Using GuaranteedWeather.com, businesses with weather-sensitive
risk, such as those in the energy, agriculture, construction, entertainment and
pharmaceutical industries, can learn about their particular weather risk, quantify
it and purchase financial derivatives to help manage it.
What is a weather derivative?
A weather derivative is a financial instrument whose value depends on the value
of some underlying variable(s), in this case a weather index such as heating degree
days, cooling degree days, average temperature or inches of precipitation.
Why was GuaranteedWeather.com developed?
GuaranteedWeather.com was developed to serve the needs of a market that is becoming
increasingly aware that weather is a risk that can, and should, be managed. Because
weather-risk management is a relatively new concept, potential customers require
a great deal of education to properly quantify weather exposure and become comfortable
with the financial structures used to manage this exposure. Until now there has
been a lack of readily accessible weather-risk management educational material.
GuaranteedWeather.com was developed to fill this void. This is done through offering
industry-specific weather-risk studies, derivatives information, and a pricing engine
that allows users to input their specific weather-risk parameters and price various
weather-risk management structures. GuaranteedWeather.com serves as a one-stop weather-risk
management portal that can be used by the novice needing a ground-up weather derivatives
education, to someone who already understands weather risk, and simply wants to
price an option.
Who can benefit from GuaranteedWeather.com?
GuaranteedWeather.com offers free access to anyone wanting to learn more about weather-risk
management or price a weather structure. Since it is on the Internet, GuaranteedWeather.com
can be accessed from anywhere in the world. GuaranteedWeather.com offers online
pricing for more than 300 locations around the world, and new locations always are
being added. Additional locations can be added as requested.
How does GuaranteedWeather.com differ from other online weather
sites?
GuaranteedWeather.com provides one-stop access to all the tools and information
needed to understand and manage weather risk. Other sites are more narrowly focused,
offering either forecast data, historical data or online wholesale weather futures
trading. Those sites, which allow for the purchase and trading of weather contracts,
offer standardized weather contracts in a few cities. GuaranteedWeather.com offers
custom-made contracts for virtually any location in the world, along with access
to the latest forecasts and historical weather data. Each solution is tailored to
the customer's specific needs. There is no such thing as "one size fits all"
at GuaranteedWeather.com.
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