Weather risk management and weather derivatives trading news

Global reinsurance giant Munich Re has provided the capacity to support a parametric wind proxy hedge risk transfer product, structured using a solution from kWh Analytics, for a 79MW, wind project in Virginia, developed by Apex Clean Energy.

Mitsui Sumitomo Insurance, a subsidiary of MS&AD Insurance Group Holdings, has unveiled its new parametric insurance product, “Weather Insurance Index”, a new offering designed to help insurers manage financial losses caused by severe or unusual weather.

Atrium, a specialty insurer at the Lloyd’s insurance and reinsurance marketplace, has entered into the weather and climate insurance market with the appointment of a new specialist team that’s set to be led by weather insurance veteran Dr Ed Byrns.

The National Commodity and Derivatives Exchange (NCDEX) has signed a Memorandum of Understanding (MoU) with the India Meteorological Department (IMD) to develop India’s first parametric weather derivatives, according to a recent article from The Economic Times.

Aeolus Capital Management Ltd., the specialist insurance-linked securities (ILS) and reinsurance investment manager, has announced a new research collaboration with Cornell University’s Department of Earth and Atmospheric Sciences, aimed at improving the modelling of hurricane tracks and assessing landfall risk with greater accuracy.

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.