GRITIT are a ‘winter risk management firm’ based in the UK. They were the first commercial organisation within the UK to offer winter road gritting to help businesses keep on the move when winter weather arrives. Given their focus on helping organisations protect their bottom line against the weather it seems natural that they have moved into offering an insurance product.
Insurance Times reports here that GRITIT have teamed up with weather risk specialist CelsiusPro to launch frost cover certificates which protect against the financial risks of frosty weather. Automated payouts are available to policyholders as soon as pre-defined weather conditions occur. We assume that CelsiusPro have arranged a layer of weather derivatives to sit under this policy which will be structured to trigger should temperatures drop below freezing for a pre-determined period.
It’s a smart move from GRITIT as after the extreme cold and ice suffered in the UK last winter many businesses are going to be looking into ways to manage the risk of that happening again. We assume GRITIT will use the frost certificates as an opener to get to talk to businesses about their other gritting services too.