Weather risk management and weather derivatives trading news

Nephila Capital, the largest insurance and reinsurance linked fund manager and global insurer Allianz have collaborated again to provide a proxy revenue swap to help reduce financing risk for those funding the 336 MW Escalade wind farm project in Texas.

Weather hedging seems to have worked as intended for Star Group (formerly Star Gas Partners) in the first-quarter of 2020, as higher temperatures in the United States triggered a payout under the energy providers weather derivatives arrangements.

Global Parametrics, the parametric and index-based disaster risk transfer company, is putting capacity from the Natural Disaster Fund (NDF) that it manages behind a new weather insurance pilot for coffee farmers in Costa Rica that is powered by Arbol’s technology and smart contract driven marketplace for weather risk transfer.

Arbol, a technology driven marketplace that uses blockchain and smart contracts, has acquired well-known specialist provider of weather risk transfer and weather hedging solutions eWeatherRisk, as it looks to revolutionise the way weather risk transfer contracts are bought and sold.

At a time when Australian has been sweltering in record heat while bush fires burned out of control, then suffering from severe storms, a recent study seeks to quantify the effect of climate variability on farm profits in the country.

Once again, the subject of exchange traded weather hedging instruments has found its way onto the agenda in India, as representatives of an exchange and regulator still look for a way to make this a reality.

Nephila Capital, the largest investment manager of insurance and reinsurance linked securities, is a regular participant in wind energy proxy revenue swap deals, alongside transaction partner Allianz Risk Transfer (Allianz ART).

Indices designed to facilitate the trading of weather risks related to wind power have now been added to weatherXchange, the parametric weather risk transfer platform operated by specialist Speedwell Weather.

According to a media report, Australian agribusiness giant GrainCorp looks to be eligible to claim as much as AU $57.3 million in a pay-out under the 10-year risk transfer arrangement it entered into this year that protects it against grain production variability, particularly from drought.

weatherXchange, the parametric weather risk transfer platform operated by specialist Speedwell Weather, has added another new capacity provider for the weather hedging products available through it, in parametric managing general agent (MGA) Skyline Partners.