Firm Vows to Replace Weather Insurance with Online Risk Tool

February 13, 2007

  • February 13, 2007 at 2:19 am
    patriot says:
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    Are we talking crop/hail coverage in addition to other weather exposures?

  • February 13, 2007 at 3:32 am
    ibleed4ward says:
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    No, it\’s more about weather that occurs with greater frequency but is less catastrophic, such as a warm winter season.

    In my opinion, the only problem here is that the online price could potentially be quite expensive compared to contacting one of the established weather hedging companies directly. Those companies tend to price on a portfolio basis rather than a strict actuarial basis, resulting in premium reduction. They also function on a global basis, meaning that your risk of a wet summer may end up being partially offset with an Australian entity\’s risk of a cool winter, a Japanese entity\’s risk of windy days, a French firm\’s risk of warm summer, and so on…



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