Aon Capital Markets today announced it has placed the industry’s first transaction utilizing the WindX™ parametric index solution. The transaction provides coverage from named storms based on wind speed data at several wind stations in Florida.
WindX is a proprietary parametric index solution designed to support the transfer and trading of catastrophic hurricane risk in the capital markets. This solution is based on location-specific wind speed measurements, either through direct reference to wind speed parameters or as a base input for derived indices. WindX supports a wide range of financial structures including over-the-counter derivative contracts, catastrophe bonds, and industry loss warranties.
“Aon Capital Markets has once again established itself as a leader in providing alternative risk solutions for our clients,” said Paul Schultz, president of Aon Capital Markets.
WindX is driven by the WeatherFlow Hurricane Mesonet, a network of hurricane-hardened weather stations specifically designed to measure and record hurricane-force winds. Stations in this new network are strategically sited to accurately capture hurricane events and support the transfer of hurricane risk. The wind speed data is valuable to others including emergency managers, modelers, insurers, and investors.