What lies ahead for weather risk management?
While products and participation continue to evolve, more education will be crucial to boosting weather derivatives use, experts say. Pauline McCallion speaks to market participants about how to continue the market’s evolution
The value of the weather risk management sector has not reached the heady heights seen right after its creation last decade, but it has grown over the past year. According to the 2011 Weather Risk Derivative Survey by the Weather Risk Management Association (WRMA), trade value reached $11.826 billion during the April 2010 to March 2011 winter and summer seasons. This was up from $9.986 billion seen in 2009–10, but down from $15.113 billion in 2008–09 and $32.008 billion in 2007–08.
The rise and
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