Weather risk management by companies such as Delphi Weather Analytics. The weather risk market makes it possible to manage the financial impact of weather through risk transfer instruments based on a defined weather element, such as temperature, rain, snow, wind, etc. Weather risk management is a way for organizations to limit their financial exposure to disruptive weather events. By making a payment (a "premium") to a separate company that will assume the financial weather risk for them, an organization essentially is buying a type of insurance - the company assuming the risk will pay the buyer a pre-set amount of money which will
Weather insurance also taken into consideration. If a car dealership wanted to insure a conditional weather promotion in which new car buyers would receive a rebate if at least 2 inches of rain fell at their location on the day after Easter, the client would need to contact the insurance company about two weeks prior to the peril date. The insurer, in turn, would price the insurance policy based on weather history for that city and state on the date that is being "insured", the type of peril being covered, and the volume of sales expected during the promotion. Weather insurance Weather