weather derivative

The weather derivatives market has seen activity levels roughly quadruple this year, as trading in weather futures and options on the Chicago Mercantile Exchange (CME) soared, with the main driver said to be the belief that extreme weather events are set to increase.

US energy company Star Group (formerly Star Gas Partners) has benefitted from its weather derivative arrangements again in the first-quarter of 2023, recording a full recovery under the terms of the degree day contract it has in place.

The Demex Group, a climate risk focused insurtech that aims to deliver climate-resilience through financial risk solutions on a global scale, has made a key hire, appointing Matt Coleman who most recently worked at Nephila Climate as its Chief Risk Officer.

The Demex Group, a climate risk focused insurtech that aims to deliver climate-resilience through financial risk solutions on a global scale, has launched new parametric snow insurance covers that are financially supported through derivatives agreements with ILS fund manager Nephila Capital, as well as new reinsurance agreements.

Inter-dealer brokerage Tullet Prebon has hired a weather derivatives broker to its wholly owned subsidiary Tullett Prebon Energy. Peter Rosen joins the firm from his last role as a weather broker at ICAP and will report to Christopher Grosso, Director of Energy Products. He will be based in the firm’s Jersey City office.

A couple of weeks ago we wrote about renewable energy risk analysis firm 3TIER® who published a wind performance map for the U.S. in 2011 which showed that generally wind speeds across the U.S. were above average across the year. Now 3Tier have published a wind performance map for Europe and again it shows that […]

Renewable energy risk analysis firm 3TIER® have published a wind performance map for the whole of 2011 which shows that generally wind speeds across the U.S. were above average across the year. Some regions saw wind speeds well above normal, as much as 15%, while others saw wind speeds -5% below their norm.

Many weather and peril re/insurance pricing decisions have tended to be made based on analysis of historical data rather than on forecasts. Historical data has always been seen as the best way to predict weather trends and assess riskiness of a specific peril in a specific geographic location. Forecasts were seen as too inaccurate and […]

Environmental Finance reports that Nikon cameras in Switzerland are utilising the services of weather risk management firm CelsiusPro AG to offer camera buyers in Switzerland a refund should the weather turn bad over a defined period over the Easter holidays.