Weather risk management association
Download
1 / 18

Weather Risk Management Association Joe Connor - PowerPoint PPT Presentation


  • 640 Views
  • Updated On :

Weather Risk Management Association. Joe Connor Aquila, Inc. www.wrma.org. WRMA. Trade association whose members specialize in providing solutions to manage exposure to weather risks.

Related searches for Weather Risk Management Association Joe Connor

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Weather Risk Management Association Joe Connor' - johana


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Weather risk management association

Weather Risk Management Association

Joe Connor

Aquila, Inc.

www.wrma.org


WRMA

  • Trade association whose members specialize in providing solutions to manage exposure to weather risks.

  • Our members offer weather risk protection in the form of insurance and weather derivatives, to prevent companies from absorbing the financial burden of harsh weather patterns.


Goals
GOALS

  • Develop standard methods of operation and procedures for the weather trading market

  • Facilitate the growth of a strong and vibrant weather trading industry

  • Address critical issues that affect the industry

  • Educate consumers whose businesses are affected by the weather


What is weather risk
What is Weather Risk?

  • Financial gain or loss due to change in weather conditions over a period hours, days, or months.


What is a weather derivative
What is a Weather Derivative?

  • Risk management tool used to stabilize annual revenues that otherwise may be affected by severe changes in weather (temperature, snowfall, rainfall, wind)

  • Based on reliable and accurate sources of weather data, e.g., National Oceanic & Atmospheric Administration (NOAA).


Benefits of weather derivatives
Benefits of Weather Derivatives

  • Stabilize Revenue

  • Control Pricing and Volume Risk

  • Enhance financial portfolios

  • Weather Conditions become an asset rather than a liability


What industries use weather derivatives

Energy and Utility

Agriculture

Financial institutions

Transportation

Entertainment

What Industries Use Weather Derivatives?


Who are our members
Who are our members?

  • Aquila

  • Element Reinsurance Holdings

  • Axia Energy

  • Industrial Bank of Japan

  • PricewaterhouseCoopers



Current trends
Current Trends

  • Market Size

    • 8 Billion


El nino la nina
El Nino/La Nina

The SOI (Southern Oscillation Index) and the Nino SSTA Indices (Sea Surface Temperature Anomalies) have a high correlation to a variety of global weather impacts.

ENSO Indices are used as indicators of the extreme events that are commonly referred to as El Nino and La Nina.


Weather risk management association1

Weather Risk Management Association

Valerie Bergman Cooper, CAE

Executive Director

[email protected]

www.wrma.org


Global climate impacts of el nino la nina

Global Climate Impacts of El Nino & La Nina


What is an el nino
What is an El Nino?

  • Normal Year

    • Warm ocean temperatures north of Australia

    • Converging winds lead to heavy Precipitation

  • El Nino Year

    • Ocean temperatures warm in the Eastern Pacific Ocean

    • Wind patterns shift eastward

    • Descending winds lead to very dry conditions over Australia


ad