Weather risk management and weather derivatives trading news

The CME Group (provider of the widest range of benchmark futures and options products available on any exchange) and Storm Exchange (the company creating a financial market to help businesses better plan for and manage their weather-related risks) have teamed up and announced the release of the results to a study on corporate weather risk […]

Great news to read that Nephila Capital is extending its partnership with Weatherbill (as announced at RIMS) by agreeing to provide more capacity for the online weather risk service. All cover will continue to be provided via the Nimbus Weather Fund run by Nephila. Seeing such firms working together to provide new areas of capacity […]

The World Bank and the Inter-American Development Bank (IDB) are expected in Jamaica today to begin talks with the Caribbean Catastrophe Risk Insurance Facility (CCRIF) and Jamaican Government on the feasibility launching insurance products for the agricultural sectors of the countries that it provides insurance to for events related to tropical storms and hurricanes. The […]

Weather insurance adoption is increasingly moving into areas where it can make a real difference to poorer developing communities. The latest area to benefit appears to be Malawi where the Opportunity International Bank of Malawi has set up a scheme to protect themselves and also to help farmers reduce the impact from fluctuations in the […]

Weatherbill has published a study identifying the relationship between weather conditions and flight disruptions (both cancellations and delays) in the United States. The study quantifies the impact of temperature and precipitation on major airports and airlines and defines delay times by “minutes per inch of rain” and “minutes per degree of temperature deviation” at each […]

Americot Inc., the second largest cotton seed company in the Southwest region in market share, has an innovative way to help growers of its cotton seeds share their weather risk. Their ‘replant program’ allows any grower with a field planted with an Americot or NexGen cotton variety, that has to be replanted with an Americot […]

There’s an interesting article today in the New Orleans City Business discussing the use of weather insurance by organisers of festivals and public events. It describes the difficulty event organisers have in applying for and affording weather cover. With so many companies offering weather cover I would have imagined that this would be a much […]

TFS Energy have just announced that its US weather derivatives division completed the first Dutch auction for Rome, Italy, on behalf of a client who was looking to offset its risk. Offers were solicited for cumulative average temperature calls in Rome for the May-September 2008 time period. The auction had a total of $40 million […]

Storm Exchange has announced that it is to acquire Weather Ventures. The acquisition will expand Storm Exchange’s weather and climate research capabilities and add a highly-regarded group of atmospheric scientists to the firm’s management team. Simultaneously, Storm Exchange will open a weather research center at The Pennsylvania State University, home of the nation’s leading meteorology […]

Regions in the Punjab, India were hit by unseasonal snow, hail and rainstorms this week which have proved devastating to crops. Reports from some regions estimate that as much as 40% of the wheat crop could have been destroyed. The Punjab is one of the regions which have yet to join the national crop insurance […]