Minimize Business Risks with Parametric Weather Risk Solutions

Customized Industry-Specific Solutions from Munich Re

If your business is affected by adverse weather, and you are interested in managing volatility or protecting your balance sheet, Munich Re has a relevant solution for you.

Introduction to Parametric Solutions

Parametric covers are a cutting-edge, data-driven risk management solution that provides financial protection against predefined events, such as natural disasters, weather conditions, or other specified triggers (e.g., solar radiation). These innovative solutions leverage advanced data analytics, modeling, and indexing to quantify and manage risks, enabling businesses to respond to and recover from unforeseen events quickly. By using parametric triggers, companies can access liquidity quickly, reducing the administrative burdens associated with lengthy claims settlement processes. Additionally, parametric solutions can cover risks that have traditionally been uninsurable.

Our weather capabilities and solutions for various industries:

What industries can be hedged?

Cement production

Cement Industry

The cement industry’s high energy consumption and vulnerability to extreme weather events, like heatwaves and water scarcity, make parametric weather solutions essential for mitigating risks and protecting profitability.

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Construction

Construction Industry

Weather-related disruptions, such as wind, snow, frost, or extreme temperatures, can result in delayed timelines, contractual penalties, higher operational expenses, property damage and increased financing costs.

Parametric weather solutions provide hedges that enhance security for bank financing and fills the gaps in traditional insurance indemnification.

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Events, Tourism and Hospitality

Events / Tourism / Hospitality

Outdoor events, tourism, and hospitality revenues are highly dependent on favorable weather, making parametric weather solutions essential for protecting income and ensuring customer satisfaction, through indemnification.

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Financial Services

Extreme weather events can unsettle financial markets and jeopardize the value of key assets, from real estate and infrastructure to large-scale loan or debt portfolios tied to construction projects.

Parametric solutions offer a way to strengthen resilience by providing swift, trigger-based payouts that help institutions cover losses, maintain stability, and protect investments against the growing impacts of climate volatility.

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Food & Beverage, Retail, Fast Moving Consumer Goods

Fast Moving Consumer Goods

For FMCG companies, sales of seasonal products often depend on specific weather conditions, like sunshine for beverages or cool days for warm clothing.

Adverse weather can sharply reduce revenue and increase volatility, making parametric weather solutions essential for smoothing seasonal swings and protecting sales performance.

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Infrastructure

Infrastructure projects—whether constructing renewable energy assets or operating infrastructure like toll roads—are increasingly vulnerable to extreme weather. These events can cause costly construction delays, damage equipment, increase operational costs, and lead to contractual penalties.

Parametric insurance provides a proactive layer of protection, delivering rapid, pre-agreed payouts when weather triggers are met, helping stakeholders manage risks, protect project timelines, and safeguard long-term asset performance.

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Mining

Excessive rainfall or drought can lead to disrupted mining operations, flooding in the mine, and destroyed railways.

Where traditional coverage falls short, parametric covers can be the right complement for holistic risk mitigation against weather risks. This ensures business continuity and indemnifies for non-physical damage through business interruptions.

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Real Estate

Real estate is inherently tied to location, making it highly vulnerable to localized weather risks such as rain, snow, strong wind, frost or heatwaves. Weather events can cause both direct property damage and indirect financial losses.

Hedging weather risks with parametric solutions can provide the following benefits:

Increased Financing Capabilities
Growing Climate Resilience
Navigated Regulatory Pressure
Increased Investors Appeal

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Steel Manufacturing

Energy-intensive steel production is exposed to risks from extreme heat, water shortages, and storms, making parametric weather solutions critical for safeguarding operations and cost stability.

Such solutions can provide rapid payouts based on pre-agreed weather triggers, enabling companies to quickly address operational disruptions, protect supply chains, and avoid costly production delays.

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Supply Chain / Logistics / Transportation

Weather extremes—like heavy rainfall, droughts, or storms—can disrupt transport routes, halt production at third-party suppliers, and delay shipments, making parametric weather solutions vital for safeguarding reliability and cost efficiency.

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Supply Chain / Logistics / Transportation

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Any other industry

Parametric solutions are applicable for any industry that is exposed to weather risk.

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What perils can be hedged?

Precipitation (high/low)

Snow & Frost

Solar radiation

Temperature (high/low)

Water level (high/low)

Wave height

Windspeed

Other

Valerie Gottschalk

Business Development Manager

Parametric Weather Solutions

Phone +49 89 3891-3765

Email vgottschalk@munichre.com

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What losses can be insured?

Business interruption

Contractual fines

Financing

Lost goods

Lost revenue

Operational cost

Other

Valerie Gottschalk

Business Development Manager

Parametric Weather Solutions

Phone +49 89 3891-3765

Email vgottschalk@munichre.com

vCard Download

What Key Benefits offer Munich Re’s Parametric Weather Solutions?

By leveraging Munich Re's parametric weather risk solutions, companies across diverse industries can enhance their resilience, minimize losses, and maintain business continuity when facing unforeseen weather events.