The concept and applications of weather derivatives and weather insurance are introduced. Proper analysis of these financial instruments requires both statistical knowledge and thorough understanding of the physical weather and climate process. A simple but practical analysis approach is developed based on historical data and seasonal forecast. It is then applied to a single and a portfolio of weather derivative contracts. Business implications of the results from the analysis are discussed.
No takes yet. Share an insight, caveat, or question.
Lixin Zeng (2000) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: