weather derivatives

TP ICAP group, one of the largest interdealer brokers in the world and Speedwell Group, a long-time specialist service provider to the weather risk management and parametric risk transfer market, have collaborated to launch a new climate index which aims to make financial risk related to the rate of climate change tradable.

The United Nations Development Programme (UNDP) has today launched the Insurance and Risk Finance Facility (IRFF), a new initiative that aims to build financial resilience and bridge a $1.4 trillion global health, mortality, and disaster protection gap, with support from the insurance-linked securities (ILS) market expected in future.

Arbol, a technology-led company focused on parametric risk transfer and weather insurance markets, has launched an intriguing new solution named Captive+Parametric, which is designed to help corporations better manage climate risk and climate change exposure, with the help of parametric risk transfer to captive structures.

Recognising the need for industries to be able to hedge their weather risks using robust data and indices, alongside exchange listing and trading, the National Meteorological Information Center of China and the Zhengzhou Commodity Exchange will work together to develop derivatives products such as weather index futures.

Things are hotting up in the weather risk management and parametric risk transfer technology space and Arbol, a smart contract, parametric risk transfer and weather insurance marketplace technology provider is one of the companies leading the charge.

As climate change becomes a topic of increasing focus and with regulations poised to get tighter, the ability to customise parametric insurance solutions suggests that going forward, the product set is going to expand, according to industry experts.

Interest in parametric risk transfer and insurance is on the rise as the immediacy and availability of data improves and new types of market participants enter the fray, suggesting growth is on the horizon, according to industry experts.

In some situations, parametric insurance and risk transfer arrangements can benefit the protection buyer by providing coverage that wouldn’t have been available under a traditional indemnity insurance policy. You can learn about this and more in our upcoming live webcast (register here).

The Weather Risk Management Association (WRMA) and Artemis have partnered to host a live webcast on April 29th 2021 to discuss the role of parametric solutions in supporting climate resilience. The event will feature senior leaders from across the weather risk management and re/insurance space.

Arbol, the provider of marketplace technology supporting parametric risk transfer and weather insurance, utilising smart contracts, has made a key hire, bringing onboard Hong Guo from GC Securities as its Chief Insurance Officer.