Weather risk management and weather derivatives trading news

Picture this; you have just produced 30,000 brand new cars, they’re parked up ready for transport abroad to be sold when along comes a hail storm which damages them all. Got weather risk cover? I hope so! Volkswagen has just experienced this in Germany (BBC News story here) when a hail storm dropped hail the […]

The World Bank has now announced the launch of it’s new scheme to aid poorer nations through the use of weather derivatives. Press release below: WASHINGTON, June 24, 2008 – The World Bank is moving ahead with plans to use the weather derivative market as part of a comprehensive strategy to reduce the impact of […]

The Weather Risk Management Association (WRMA) have announced their annual changes to the board and president of the association following their annual meeting. Every year they invite new members to the board and change the presidency based on member elections. In the latest changes the following new board members have been elected for two years; […]

The Japan Bank for International Cooperation (JBIC) has signed (on June 12th) a memorandum of understanding with the Bank for Agriculture and Agricultural Cooperatives (BAAC) cooperation for the promotion of weather derivatives in the agricultural sector of Thailand. Specifically that will involve holding seminars to help improve understanding among end-users and private sector companies. Full […]

Weatherbill have provided the cover for another innovative travel scheme similar to their deal with Priceline. They’ve entered into an agreement with itravel2000.com, Canada’s largest online travel retailer, to provide coverage for their promotion, “Let it Snow”. WeatherBill will provide up to $100m CDN in snow coverage. The deal involves itravel2000 customers receiving a refund […]

According to the publication Travel Weekly (article here), Weatherbill are looking to target UK travel companies in an attempt to capitalise on their recent deal with Priceline.com. Good move by Weatherbill. The UK travel industry (particularly tour operators) do not use alternative methods to hedge against weather either for their customers or their own bottom […]

The recent flooding in Iowa state has led to damage estimates which are nearing $3b. Reinsurers are going to bear the brunt of this with Ace, XL, PartnerRe and Renaissance Re all being exposed. Actual damages may come in under that level if it dries up significantly but at the moment it’s looking fairly accurate. […]

Munich Re have released a new publication which is well worth reading titled ‘Climate Change in Central Europe‘. It details the increasing incidence of weather related natural catastrophes in central Europe and says the evidence is mounting that this is due to climate change. Loss potential in Europe from these events is growing and as […]

As ever at this time of year, interest in weather derivatives amongst the press picks up. I don’t know whether it’s purely a seasonal thing or perhaps the WRMA annual meeting has helped to stir interest this year. Anyway, here are two news articles that appeared over the weekend that are worth reading: Weather derivatives […]

Malawi’s Finance Minister Goodall Gondwe said Friday the country in collaboration with World Bank will pilot a crop insurance scheme against adverse weather which could also be repeated elsewhere. “We have…agreed to pilot a World Bank weather insurance scheme under which a premium is paid and if it is found that the weather conditions have […]