Solutions for managing Weather & Energy Risks

Weather can hurt your business. The Environmental & Commodity Markets ("ECM") team of Swiss Re Corporate Solutions offers bespoke, structured weather and energy products that protect your earnings against those risks.

A team of specialist Originators and Underwriters across the globe can help you find the right product. For instance, depending on your gas and power supply arrangements, an unexpectedly mild or cold winter can significantly cut your profits if you are an energy provider.

To mitigate the financial consequences of weather-related effects on your business, ECM can provide two types of customised weather solutions specifically tailored to your requirements

• volume-related solutions and
• volume and commodity price-related solutions.

Volume-related solutions are based on weather indices (Temperature, Wind, Rainfall,..) over a specified risk period.

Volume and commodity price-related (quanto) solutions are based on daily indices covering both weather and commodity prices such as natural gas and power over a specified calculation period.

These hedges can be structured as swaps, floors, caps, collars, etc. or insurance contracts.