Weather Stations to Provide Data for New Parametric Index Completed for 2008 Hurricane Season

by Artemis on April 22, 2008

Newark, Calif. – April 22, 2008 – A network of hurricane-hardened weather stations to measure wind speeds for a new securities index has been installed in preparation for the 2008 hurricane season, Risk Management Solutions and Weatherflow, a leading provider of weather data, revealed today. The stations will provide wind speed data for the WindX parametric index, which supports the transfer and trading of catastrophic hurricane risk in the capital markets.

“More than 50 stations specifically designed to withstand and accurately record winds up to and exceeding 140 miles an hour have been planted across Florida, with a further eight installed in Houston,” said Buck Lyons, CEO of WeatherFlow.

Wind speeds are measured in specific locations and entered into the index to signal to the insurance industry and investors whether a wide range of financial structures including over-the-counter derivative contracts, catastrophe bonds, and industry loss warranties have triggered.

“The key feature of WindX is its simplicity. An insurance-linked security structured on the index will trigger if wind speeds on particular weather stations exceed a certain threshold, making it easy and transparent for both issuers and investors,” commented Peter Nakada, managing director of RMS Consulting. “Some capital market players have been discouraged from investing in insurance-linked securities due to the complexity of understanding potential property losses from catastrophic events. With WindX, they are making a pure bet on wind speeds, which is far more attractive.”

State-of-the-art 10-meter concrete weather stations have been installed in vulnerable areas based on likely storm paths and potential for economic loss. The new network complements the current National Oceanic and Atmospheric Administration (NOAA) weather stations and Weatherflow’s existing coastal observing system. At the completion of the first phase of the network in March 2009, approximately 50 more stations will be installed across the US East Coast and Gulf Coast.

“Until now, there has been no reliable means of measuring wind speeds in specific locations,” commented Mr. Nakada. “We believe WindX will help to mobilize a substantial, fluid, and efficient catastrophe-linked insurance market.”

More information about WindX is available at www.windx.com

Press release from Risk Management Solutions Inc.

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