Content

Hannover Re enters the weather market

Hannover, 13 November 2001:

As of 1 October 2001 Hannover Re has joined an international pool offering worldwide protection against temperature, wind and precipitation risks. This pool is lead and managed by Aquila, Inc., Kansas City, one of the international market leaders for weather derivatives. This new market segment was pioneered three years ago in the USA and is now being developed in Germany. The market already shows a total global volume of USD 7.5 billion.The special feature of these products is that they protect against a weather-related decline in turnover suffered by utility, transport, tourism and agricultural companies. Compensation is based upon relevant weather indices. Meteorological institutes believe that more than 80% of business activity conducted by all companies worldwide is dependent on the effects of the weather.