SOURCE: Weather Risk Management Association

November 14, 2008 11:25 ET

Weather Risk Market Serves Changing Customer Needs

Solar Manufacturer, Travel Groups Utilize Weather Risk Tools

BERLIN--(Marketwire - November 14, 2008) - Attendees at the Weather Risk Management Association's (WRMA) 9th Annual European Meeting learned how the weather risk management market is evolving to serve a wide range of customers. WRMA's European Meeting was held in Berlin, Germany.

Making weather hedges simple and widely available is a goal of WeatherBill, Inc., according to Jens Boening, managing director, Europe & Asia for WeatherBill. Travel companies are using weather hedges as an innovative tool to attract customers. In a recent promotion, a major travel company marketed guaranteed sunshine vacation packages where the customer was refunded if rain spoiled the vacation. The company was able to make such an offer as it hedged its weather risk through WeatherBill's online service.

It's not just vacationers who want sunshine; so does the renewable energy industry. Dan Tomlinson, director of European Marketing at Galileo Weather Risk Management, told attendees that a solar panel manufacturer has used its SolarLock™ hedging products to help market its solar panels with a generation guarantee. The customers would have been paid for a decline in power generation from solar units due to a greater-than-average number of cloudy days.

The weather risk market is also seeing an evolution in demand from the traditional utility customers, said Richard Betts, Weather Origination executive E.ON Energy Trading. Utility hedges are becoming more complex and the market is responding by evolving products which enable hedging of both volume and price, rather than just volume.

Events at WRMA's European Meeting were graciously sponsored by Galileo Weather Risk Management and Advisors, RWE Supply & Trading GmbH, MeteoGroup, Renaissance Trading Ltd., Paris Re, the Chicago Mercantile Exchange, NYSE Euronext, and Speedwell Weather.

About WRMA

The Weather Risk Management Association (WRMA) is an international trade organization dedicated to promoting the industry, both to those within it and to end-users. According to the latest WRMA/PricewaterhouseCoopers industry survey, the weather risk management industry totaled $32-billion in 2007-2008, up from $19-billion in 2006-2007. For more information on WRMA, visit: http://www.wrma.org

Contact Information

  • Contacts:
    Valerie Cooper
    WRMA Executive Director in Washington, DC
    +1 202-289-3800
    E-mail: Email Contact

    Shirley Savage
    WRMA PR rep.
    Office: +1 207-721-0890
    Mobile: +1 207-329-3304
    E-mail: Email Contact