Mixed forecast

Weather derivatives have never reached the heights predicted by some in the early part of the decade. However, a number of structured products linked to weather, global warming and the environment have recently been launched. Could this give the weather derivatives market the fillip it needs to go mainstream? By Ryan Davidson

Weather derivatives were touted as the next big thing when they burst on the scene in the late 1990s. Here was a way for utility companies to hedge against reduced energy consumption in warm winters; for insurance companies to protect themselves against multi-billion-dollar claims in the wake of devastating hurricanes; and for agricultural firms to hedge against low crop yields caused by above