How our parametric insurance for weather risks works for you
- 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
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).
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.
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.
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.