Swiss Re Insurance-Linked Fund Management

Original Risk: A Society for Change Agents

When weather insurance isn’t enough


This news article explains the plight of an organisation who held a fund raiser recently. The weather turned bad and it rained throughout the day meaning that they only had around 200 spectators instead of the 3,000 they expected. They are estimating a loss of $10,000.

They should have got weather insurance cover I hear you say.

They did. Despite having weather insurance they haven’t felt any benefit as it didn’t rain enough to recoup the costs.

Stories like this are becoming more common as weather insurance gets more popular and easier to access by small organisations such as this. What’s the point though if the weather cover isn’t actually providing a payout at times when it should?

I don’t know the details of the cover they purchased but it obviously wasn’t structured in such a way that it would pay out under weather such as they experienced. It does make me wonder whether insurance needs to think more broadly than just on how much rain there is, perhaps footfall through the gates could have been used as a secondary trigger? It seems like there could be a great opportunity for insurers who are willing to create flexible, affordable weather cover for events such as this.

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.