Document Type
Article
Abstract
Uses of climate information have grown considerably in the past 15 years as a wide variety of weathersensitive businesses sought to deal effectively with their financial losses and manage risks associated with various weather and climate conditions. Availability of both long-term quality climate data and new technologies has facilitated development of climate-related products by private-sector atmospheric scientists and decision makers. Weather derivatives, now widely used in the energy sector, allow companies to select a financially critical seasonal weather threshold, and, for a price paid to a provider, to obtain financial reparation if this threshold is exceeded. Another new product primarily used by the insurance industry is weather-risk models, which define the potential risks of severe-weather losses across a region where few historical insured loss data exist. Firms develop weather-risk models based on historical storm information combined with a target region’s societal, economic, and physical conditions. Examples of the derivatives and weather-risk models and their uses are presented. Atmospheric scientists who want to participate in the development and use of these new risk-management products will need to broaden their educational experience and develop knowledge and skills in fields such as finance, geography, economics, statistics, and information technology.
DOI
10.1175/2009JAMC2234.1
Publication Date
1-1-2010
Recommended Citation
Changnon, D., and S.A. Changnon, 2010: Major growth in some business related uses of climate information. Journal of Applied Meteorology and Climatology, 49, 325-331.
Original Citation
Changnon, D., and S.A. Changnon, 2010: Major growth in some business related uses of climate information. Journal of Applied Meteorology and Climatology, 49, 325-331.
Department
Department of Geographic and Atmospheric Sciences
Legacy Department
Department of Geography
ISSN
1558-8432
Language
eng
Publisher
American Meteorological Society
Comments
D0 Collaboration