Weather derivatives watershed?

New angles

Weather can have a significant impact on businesses. A severe frost could destroy agricultural commodities, adverse weather conditions might delay and increase the cost of freight delivery, and excessive or inadequate rainfall could lead to a sub-optimal harvest. Clifford Chance estimates the weather costs UK companies up to £8 billion a year.

As weather is a tangible phenomenon it seems somewhat puzzling that weather derivatives have not become the major business they were predicted to be a few

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