Posted: 22 May 2006 05:10 Post Subject: All about weather risk management contracts !
My friend I must tell you that your policy and the risk management contracts are alike but exactly not the same !
Weather risk management contracts are designed as a means of protecting the insured from losses inflicted by fluctuations in temperature, precipitation and windstorms etc. In the recent times the wealther risk management contracts are getting sold in large numbers across the globe and are increasing in terms of sales volume with each passing day. Amongst all these, most of the contracts cover temperature variations while the remaining are growing in number and focused on covering precipitation and windstorms.
Posted: 22 May 2006 06:31 Post Subject: its just a type of business interruption insurance...
please make a note.... that weather insurance is a type of business interruption insurance that compensates for financial losses caused by adverse weather conditions, such as constant rain on the day scheduled for a major outdoor concert. This is somewhat different from the risk management contracts owing to the smaller volume of market that it covers than the contracts.
The insurance industry provides property and crop insurance to organizations and individuals which are all directly impacted by severe weather occurrences. Studies and analysis of the historical and predicted future impact of severe weather are of interest to the insurance industry. Weather Insurance, once thought of as solely for outdoor events, is now used by every type of business: manufacturers, retailers, construction and most other industries - to minimize the impact of weather on their operations. Bad weather can ruin a normally successful function or business. The experts in the weather insurance field, help to protect your financial interests.
hence you don't need to worry...and think about risk management only if you're dreaming Big !
Posted: 22 May 2006 07:10 Post Subject: does it cover all ?
hi, I'm keenly interested to know all that is covered by a Weather Insurance. Does it also cover the private sector ?
Posted: 23 May 2006 08:00 Post Subject: financial interests protected by weather insurance !
Dear friend, as far my knowledge goes the financial interests protected by weather insurance include government policies about weather research, forecast operations, and responses focused primarily on the National Weather Service.
But more broadly constituted it would include the Department of Agriculture, Federal Emergency Management Agency, Small Business Administration, and other agencies that deal with weather and its impacts. It also covers the private sector, notably including providers of weather information and the insurance industry.
Insurance on weather can, at best, provide a measure of the efficiency of the Meteorological Department and other research institutions working in the field of weather forecasting.