Following the release of their White Paper, Meteo Protect was invited to share its views on building resiliency of the private sector with Government leaders and company executives of the UK and France. Providing examples of how index-based weather insurance is an effective risk management tool to help private sector adapt to effects of unfavourable weather. Meteo Protect called upon governments and regulators to provide a common private sector for companies to be able to act now.
Paris, France – November 04, 2015:
In the lead-up to Cop21, the UK Government Office for Science with the UK Science & Innovation Network invited experts and government representatives from UK and France, including Meteo Protect, to the British Embassy in Paris to discuss how to adapt and respond to extreme weather. Meteo Protect discussed the results of their extensive research on private sector’s exposure to climate variability.
Climate variability is already affecting more than 80% of economic sectors, and sales, profits and jobs are already at risk. With climate change, climate variability has dramatically increased and the number and intensity of severe weather events are expected to continue to rise.
Gabriel Gross, CEO of Meteo Protect explains: “Thanks to big data calculus and climate intelligence, the consequences of climate variability on business activity are no longer ‘Acts of God’ but ‘foreseeable events’. It is in fact possible to manage weather risk using traditional financial management techniques. Index-based weather insurance can play a significant role in helping companies mitigate the consequences of climate variability. Index-based insurance is designed to automatically compensate companies in the event of unfavourable weather, providing a risk management tool to ensure companies are truly resilient to climate variability.”
However, Meteo Protect warned that for index-based weather insurance to work effectively, governments, regulators and institutional investors need to assist private enterprises to act now. Urgent measures must be put in place to foster the development of the insurance market as new challenges and opportunities present themselves.
“Governments and regulators have a role to play in providing a common framework for the private sector to report the contribution of climate variability to sales and EBITDA on a quarterly basis, as they have done in the past for other market risks such as for foreign exchange rates,” said Mr. Gross. “By facilitating the disclosure of climate risks, governments and regulators allow private companies to better understand their exposure to climate variability, to better mitigate their risk using index-based insurance, and to integrate climate risks today and on an on-going basis into their long-term strategic planning.”
Meteo Protect’s White Paper, “Ranking the Impact of Climate Variability on U.K. Retail Sectors: A Path to Resilience”, can be downloaded at whitepaper.meteoprotect.com.
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About Meteo Protect
Meteo Protect creates fully-managed parametric weather insurance products to protect businesses when the weather impacts their financial performance. A broker and underwriter based in Paris, and already active in eight countries, Meteo Protect covers risks anywhere in the world, and its solutions are supported by the largest insurers and reinsurers in the market. Meteo Protect is a Lloyd’s coverholder, is registered with ORIAS, and is a member of CNCIF.
Meteo Protect has strong international distribution partnerships with leading, financial institutions, agricultural cooperatives, and associations. Insurance companies use Meteo Protect’s white label, web-based underwriting and pricing platform to create parametric insurance for their clients. The policies are underwritten and managed by Meteo Protect’s award winning platform, Vivaldi, running on SAP’s HANA technology and certified by SAP.