Worsening Weather Is Igniting a $25 Billion Market
"Against a backdrop of rising climate volatility and social shifts, demand for #WeatherDerivatives is surging.
While a [catastrophe] bond may pay out if a 100-year storm tears through a community, a weather derivative can compensate a tourism business if there are too many rainy days, or a farmer if a hot summer stresses her crops."
@sshann Thank you so much for sharing this on #ClimateDiary - super interesting, another whole vocabulary to get my head around. Am i understanding it correctly that #WeatherDerivatives are about people betting on and then making profits from #extremeweather events? #Futures, basically, not about commodities but the weather? I don’t really understand how there can be money in this in the longer term, especially with more and more #Insurance companies stopping coverage #WeatherFutures