Parametric weather insurance

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The parametric weather insurance is a hedging instrument of weather risks . In contrast to classic damage insurance, parametric weather insurance insures the policyholder against the occurrence of everyday weather events. For example, insurance is provided for exceeding or falling below certain amounts of precipitation, hours of sunshine or temperature levels within an agreed period. The insurance benefit is based on the measured values ​​of the respective measuring station and not on specific damage incurred by the policyholder.

This type of insurance therefore uses an objective and independent index of insurance performance that is closely correlated with the actual damage. Since there is no need to collect the damage to the policyholder and to clarify any question of guilt, the insurance benefits can be processed easily and cheaply. There is also no possibility of insurance fraud . This reduces administration fees and makes insurance contracts simpler. The problem of asymmetrical information between the insurer and the insured is also reduced.

Since the actual damage is not insured, there is, conversely, the risk of insufficient insurance benefits or windfall profits for the policyholder.

Commercial areas of application are mainly found in risk management. With parametric weather insurance, both financial losses and additional costs due to unfavorable weather conditions can be compensated. Sectors particularly affected by weather risks are the construction industry, tourism, the event industry, winter services, energy suppliers and the catering trade. For example, an event restaurateur secured his stand at the Maschseefest 2014 against precipitation in order to cushion the resulting loss of sales. Another possible use is to secure guarantee promises, for example in marketing: In 2014, Italian hoteliers offered a money-back guarantee in the event of a rainy holiday.

Thanks to the simple, highly standardized processing, the insurance is also suitable for microinsurance , e.g. B. in the third world.

The insurance companies can be reinsured with weather derivatives .

Individual evidence

  1. ↑ Green Paper Insurance against Natural and Man-Made Disasters, EU 2013
  2. ↑ http://www.bild.de/regional/hannover/wetter/erster-maschsee-wirt-mit-regen-versicherung-37117160.bild.html
  3. ↑ http://www.versicherungsbote.de/id/4802669/Regenversicherung-Italien-Hotel-Urlaub-Schlechtes-Wetter/
  4. ^ "Insurers suspect business with micropolics"; in: Die welt from November 5, 2011