Snowplows clearing a highway
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Unpredictable weather?
Don’t worry!

Make use of our weather risk covers to optimize your risk management

Numerous businesses are exposed to weather risks

Over two-thirds of the world's economy is directly or indirectly dependent on atmospheric conditions.

Companies can protect themselves against the financial consequences of unfavorable weather conditions and climate risk by purchasing weather derivatives or weather insurance based on parametric insurance triggers providing compensation for any loss of revenue and additional costs incurred.  

How businesses can benefit from weather risk covers

Insufficient planning may have a material impact on both costs and deadlines during the construction process. For example, investors fear the uncertainty that naturally comes with the numerous weather risks involved in construction projects. According to global studies, the range of unplanned increases in construction costs is in the order of 20% to 30% of the project building cost.

Our parametric solutions will help

  • Protect you against unfavorable construction conditions 
  • Stabilize your revenue
  • Improve the risk/return profile of the construction project 
  • Increase your capital efficiency
  • Support your credit worthiness 

Construction completion risk due to extreme weather can be mitigated through weather related products. Please get in touch if you are a

  • Contractor
  • Energy utility
  • Renewable energy contractor 
  • Municipality

Ice and snow from winter storms can cause severe equipment and property damage. Traditional snow removal contracts require weather risk to be absorbed by either the contractor or the property owner. Additionally, snow removal companies are given support to ensure business continuity if a mild winter causes a severe drop in their revenues.  

During winters with heavy snowfall, municipalities may not only exceed their budget for snow removal; seasonal energy requirements for municipally owned buildings may also exceed their budget during cold winters - and during hot summers.

Our solutions will help

  • Protect you against costs from unfavorable weather conditions
  • Stabilize your revenue 
  • Improve the risk/return profile of the entity
  • Increase your capital efficiency 

In a globalized economy in which entities own assets all over the world and depend on suppliers and customers on an international scale, business interruption exposures are more complex than ever before. Munich Re helps you manage the weather risks associated with property-related exposures.

Business interruption can be mitigated through our weather risk-related products. Please get in touch if you own, manage or operate any of the following:

  • Buildings
  • Gaming/Casino
  • Global real estate service firms
  • Golf Club
  • Hotel
  • Parking
  • Real estate fund and investment trust
  • Recreational venue
  • Restaurant

Our solutions will help

  • Protect you against unfavorable business conditions
  • Stabilize your revenue
  • Improve the risk/return profile of your assets
  • Increase your capital efficiency
  • Support your credit worthiness

We are using the following weather parameters to immediately calculate your weather risk payout: 

  • Drought, freeze, frost
  • Heating degree days (HDD) / Cooling degree days (CDD) Heat
  • Rainfall and snow/Snow depth
  • River flow/Water level
  • Sunshine/Solar irradiation
  • Wind speed