Weather risk management and weather derivatives trading news

As South Asia faces escalating threats from extreme weather events, the World Bank Group is urging policymakers to scale up innovative financial tools such as weather-index insurance to help households and businesses manage climate risks more effectively.

ICEYE, the provider of satellite data and services to inform decision-making and analysis, has unveiled its industry-first hurricane data impact solution that’s designed to provide insurers with near-instant visibility into wind and flood damage across the United States.

According to global specialty insurance and reinsurance group Chaucer, evidence from observational data and climate models shows that tropical cyclones, known as typhoons in the Pacific, are showing signs of being influenced by climate change, with a notable trend of their peak intensity shifting northward in the Northwest Pacific.

According to Twelve Securis, the specialist insurance-linked securities (ILS) manager, the combination of advancements being seen in catastrophe modeling, along with shifting climate patterns, and the ability to generate uncorrelated returns, is making ILS an increasingly attractive investment amid a rapidly changing risk landscape.

Re/insurance broking giant Aon has announced the launch of a new parametric insurance solution that is designed to address and mitigate losses from hurricane-related storm surge along the coast of the United States, developed in partnership with Floodbase, a specialist in parametric flood risk, and global commercial insurer, Swiss Re Corporate Solutions.

Descartes Underwriting, a data-driven risk transfer specialist managing general agency (MGA) and insurer with a parametric focus, has launched what it calls the world’s most advanced parametric insurance product to protect utility-scale solar farms in the United States against damage from tornadoes.

With climate change concerns on the rise for businesses around the world, a new report from CME Group has noted that average trading volumes for weather derivatives are seeing a boost in interest.

Speedwell Climate, a leading provider of weather, catastrophe and climate data, indices and settlement services, has been acquired by Vaisala, a global company focused on provision of measurement instruments and intelligence for climate action.

BGC Group, Inc., the global brokerage and financial technology company, has added a new hire to its weather derivatives trading desk, taking Leah Loguidice from Arbol for a weather derivatives origination and structuring role.

Having recorded a lower benefit from its weather derivatives for the last contract year, US energy company Star Group (formerly Star Gas Partners) has lifted the top-end of its protection from the weather hedges for its fiscal year 2025.