Weather risk management permits companies to engage in promotional campaigns conditioning product prices and conditions to weather events. Through risk transfer products the cost of a weather related campaign can be hedged.

There have been some precedents of promotional campaigns where prices where linked to weather and the results were of approximately 70% increase in sales and the access to new targets. 

As an example, a carmaker could for instance decide to run a promotional campaign for its convertibles, in which 5% of the car's price is refunded to the client if it rains on more than three days in the following month. The cost of the promotion could be minimized by a weather hedge.


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