CelsiusPro AG, the Swiss-based specialist in structuring and originating weather derivatives and certificates, has teamed up with Allianz Global Assistance to bring weather insurance to travellers to help them hedge against the risks of rainfall on their holidays. It’s another example of weather risk management practices being offered to consumers to help them hedge inclement weather through a program which at its core will use weather derivatives to underwrite the risks involved.
The product from CelsiusPro and Allianz is called ELVIA Weather Insurance and will be offered as an ancillary product when consumers book a holiday. For every recorded Rain Day after the first Rain Day at their destination, travellers will receive CHF100 up to a maximum of CHF1000. Rain measurements are made at the nearest official national weather station to the consumers holiday destination.
Mark Rueegg, CEO CelsiusPro, said; “We are very pleased with our collaboration with Allianz Global Assistance. The ELVIA Weather
Insurance is an innovative product and a solution to a problem many holidaymakers face: Rain at their holiday destination.”
The insurance can be bought for holidays to many popular destinations in Europe, North America and Australia.
As a weather derivatives trading company we assume that CelsiusPro are underwriting these policies with weather hedges, rather than with a reinsurance policy.