Power pole falling after blizzard
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Weather risks

Our insurance and derivative solutions - Your benefit

While corporate entities have long used weather insurance to manage the risk of catastrophic weather events, weather-index-based covers have grown to become an important risk management tool. 

How our parametric insurance for weather risks works for you

Munich Re tailors your business's coverage by analyzing your risk profile to develop pre-defined thresholds and payout amounts.
Our team of experts consistently monitor the pre-defined risk index for any fluctuations.
Once the climate index exceeds the pre-defined threshold, your business receives a payout.

Your benefits

  • Speed: Parametric insurance triggers ensure rapid recovery thanks to a quick and straightforward payout process that provides liquidity when you need it most (whether monthly, seasonally, annually). 
  • Closing gaps: Previously uninsurable weather risks are now insurable. Traditionally difficult to insure costs such as business interruption can now be covered with weather insurance and derivatives at a reasonable price. 
  • Transparency: Third-party institutions provide the data needed to trigger payment based on a simple, individually verifiable, and unambiguous process. 
  • Bespoke products: In tandem with our experts, parametric solutions are tailor-made to the customer's exposures, risk appetite and legal environment. 

Managing your weather risks

Our tailored risk management solutions provide financial relief to companies whose revenues are sensitive to weather risk.
We develop bespoke risk transfer solutions for all industry sectors and public entities impacted by increased weather variability. Our financial hedging instruments are used to manage weather-driven fluctuations in financial and operational KPIs (key performance indicators). 
Our global team has long-standing expertise in developing weather risk-transfer structures.
Which is why our solutions provide fast payouts, flexible trigger designs, and lean administrative processes tailored to your specific needs. In addition, our parametric solutions are designed to support and encourage growth as well as develop new business models across industries. 
When facing complex weather risk management situations, industrial enterprises need a reliable and competent partner.
Our clients benefit from the experience, commitment, and drive we put into identifying inventive weather insurance and derivative solutions to meet specific challenges. These solutions cater to all industries and cover the full bandwidth of weather variables.
We develop bespoke weather risk transfer solutions for all industry sectors impacted by increased weather variability. 
Our financial hedging instruments are used to manage non-catastrophic weather risks. Weather index-linked hedging instruments are customized for individual companies. Quanto (dual trigger) products are quantity-adjusting options which combine volumetric (weather) and price (commodity) triggers. 
Pure weather  Pure commodities  Quantos 
Swaps  Swaps  Swap / Swap 
Options  Options  Swap / Option 
Option / Option 

An agreement to an exchange or to net payments one or more times based on the actual or expected price, yield, level, performance, or value of one or more underlying interests:

A derivative designed to manage risk by allowing the hedger to determine when to liquidate the contract. If an option expires, it has no further value.

Client specific transactions which combine a volumetric risk (driven by weather) and a commodity price risk. Usually these risk profiles directly relate to clients' financial loss exposures. Quantos are not standardized and can be structured to address each client's specific exposure.

Contact us
Marcel-Steffen Reif
Marcel-Steffen Reif
Head of Weather & Commodity EMEA
David Stevenson
CEO of Munich Re Trading LLC