Swiss Re Insurance-Linked Fund Management

Xactanalysis Insights and PCS

Paris Re and Marsh develop index-based weather cover for wind farms


Paris Re and Marsh have jointly developed a new index-based weather cover for the wind energy sector. The cover was developed under the framework of a study commissioned by the United Nations Environment Programme (UNEP) and the Global Environment Facility (GEF).

The study looked at the technical, legal and financial feasibility of implementing weather risk cover in Mexico. The aims of the study were to create confidence amongst investors in emerging market wind farm projects, by providing insurance against the most important of weather risks to such projects; the lack of sufficient wind. Being index-based of course means that payouts can be made quickly with no need for claims adjustments to trigger indemnity, simply the level of wind falling below a predetermined threshold is sufficient to trigger the coverage.

This is further evidence of the benefits of weather risk management and derivatives to the developing world. Paris Re say this solution can easily be applied to other wind energy projects around the world.

Register today for ILS NYC 2023, our next insurance-linked securities (ILS) market conference. Held in New York City, February 10th, 2023.

Artemis London 2022 - Insurance-linked securities conference in London

Get a ticket soon to ensure you can attend. Secure your place at the event here!

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.