Bright future for weather derivatives, finds survey

Just over seventy risk traders, brokers, data providers and end-users contributed to our inaugural survey.

One of the key findings of the survey was that almost 90% of those polled believe that the weather risk market is larger than the Weather Risk Management Association (WRMA) would have us believe. Two months ago WRMA reported that the total notional value of the market was $4.6 billion from April 2003 to March 2004 - marking a 10% increase over the previous year and an all-time high for