When major natural catastrophes such as hurricanes or extensive
flooding occur, the impact they have on economies and individual
companies can be clearly seen in the figures. But even minor
fluctuations in seasonal weather, although not ruinous, can
significantly reduce corporate earnings. Weather derivatives are
still a young but finely tuned instrument, which makes it possible
to effectively smooth fluctuations in earnings. Since early 2014,
our expanded unit, Munich Weather &
Commodities Risk Advisors LLC, has offered intelligent weather
hedging instruments worldwide.