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Europe and Asia see strong growth in weather hedging – WRMA survey

Europe and Asia saw a significant rise in the number and value of weather risk derivatives contracts traded last year, with the market overall seeing a shift from pure temperature-related contracts to other forms of protection such as rain, snow and wind.

There were 765 weather contracts traded in Europe last year, up 345% on 2000, with total notional values hitting $601 million, compared with $49 million the previous year, according to a survey by the Weather Risk Management Association (WRMA) and professional services firm PricewaterhouseCoopers. In WRMA’s second such study, it found that 445 contracts worth $90 million were traded in Asia last

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