Weather Risk Management Ecosystem

Weather Risk Management is the practice of businesses or individuals to effectively assess and minimize financial losses caused by varying weather elements through avoidance, retention, and/or risk transfer.

WEATHER RISK MANAGEMENT ECOSYSTEM

OBSERVATIONS, FORECASTS, RESEARCH (EDUCATION, SCIENCES, and SERVICES): World Meteorological Organization, National Centers, Governments

DERIVATIVES:

FINANCIAL HEDGES/REVENUE STABILIZATION
Combination of Weather, Commodities, or Both (Quantos) Designed/Managed to Optimize Costs and/or Protect Profits

SECURITIZATION/INSURANCE:

PURE WEATHER INDEX INSURANCE
Parametric with Varying Attachments CROP INSURANCE
Price & Volume (Revenue) Traditional Multi-Peril Crop Insurance and Index INSURANCE LINKED SECURITIES/CATASTROPHE BONDS
Indemnity, Industry Index, or Parametric Triggers CATASTROPHE INSURANCE
Indemnity Property & Casualty, Business Interruption, Travel Interruption, etc.

ADVISORY:

WEATHER/CLIMATE RESILIENCE
Engineering, Land-Use, Regulation, Disaster Recovery, etc. PUBLIC FORECASTING/CONSULTING
National Weather Service - Equivalent Offices Advisories, Alerts, Warnings Protects Lives and Property PRIVATE FORECASTING/CONSULTING
Customer & Industry Centric Tools and Content for Decision Making

COMMODITIZATION:

WEATHER FUTURES/OPTIONS TRADING
Volumetric Hedging WEATHER INFORMATION INFLUENCES COMMODITY EXECUTION/DECISIONS
Energy & Agriculture - Futures & Options