Weather is the single most important factor in influencing price volatility, volume fluctuations and revenues for an estimated 80% of global business activity. In effect, weather risk is becoming just as important as interest rate risk and exchange rate risk in its affect on your business revenues and bottom line.
Furthermore disaster hedging by developing nations is set to be a human success story of the 21st century in the weather derivatives arena. Poor countries are actively employing these tools (with the help of aid agencies and multilateral organizations) to protect themselves from drought-induced malaise and to facilitate agricultural insurance to their farmers.
Weather Risk Management brings together a collection of experts on the subject to look at this changing area, the strategies and innovations and features detailed studies on agriculture and energy.
- Book 9781904339687 / EBook 9781908823359
- Publish date
- 1 Mar 2010
- 155mm x 235mm
Table of contents
SECTION 1: INTRODUCTION
Introduction to Weather Risk Management
Oxbridge Weather Capital
Living in Interesting Times - Critical Risks and Risk Management
Nomad Energy Consulting
SECTION 2: WEATHER RISK MANAGEMENT AND HEDGING STRATEGIES
Evolution of Weather Derivatives and Contract Types
The Development of the Weather Derivatives Market in India
Centre for Insurance and Risk Management
Weather Derivatives and Insurance: Critical Legal Distinctions
McDermott Will &amp;amp;amp;amp;amp;amp; Emery
SECTION 3: SECTOR STUDIES IN AGRICULTURE AND ENERGY
Index Insurance for Agriculture in Developing Countries: Moving Beyond Pilots
Erin Bryla and Joanna Syroka
The World Bank; United Nations World Food Programme
Rainfall Insurance in Semi-Arid India: Contract Design, Household Participation and Future Prospects
Xavier Giné, Robert Townsend, James Vickery
The World Bank; MIT Economics Department; Federal Reserve Bank of New York
Preparing for a rainy day: Weather-based financial risk management solutions for the agricultural markets
Managing combined weather and price risk for the energy industry - hedging considerations
SECTION 4: INNOVATIONS IN RISK MANAGEMENT
Genuine Alpha, Perfect Security - Reaffirming ILS Rationales
Lane Financial LLC
Managing Catastrophic Risk - Beyond Cat Bonds
Steve E Smith
CERVO: Community Early Recovery Voucher Scheme for Catastrophic Weather Disaster Hedging
Ulrich Hess, Niels Balzer, Sandro Calmanti, Michael Portegies-Zwart
United Nations World Food Programme
Managing weather risk in a changing climate – opportunities from the developing science
“Dr Tang’s book about weather risk management and weather-linked products and instruments which would complement traditional equity and debt investments, should prove interesting to financial services practitioners.
Weather finance is set to be an important tool in the mitigation of risk. He sets out an interesting future where governments may hedge against catastrophic weather to tackle harvest failures.
I am sure that this book will contribute to the debate about how financial markets can be used to tackle and mitigate the impacts of climate change and weather risks”.
Alderman Nick Anstee
The Rt. Hon the Lord Mayor of London