Meteo Protect, the European leader in weather risk management, has entered into a strategic partnership with BNP Paribas to offer BNP Paribas’s corporate and institutional clients a complete range of weather risk financial management solutions.
Meteo Protect and BNP Paribas today launched a unique and comprehensive range of financial risk management solutions for BNP Paribas corporate and institutional clients. As a result of this alliance, BNP Paribas is the first bank in France to allow its clients to put in place effective financial solutions to manage their exposure to the increasing risk of adverse weather conditions.
BNP Paribas customers may now also access consulting services to assess and manage their weather risks. Meteo Protect’s team of meteorologists, climatologists, quantitative analysts and actuaries will provide BNP Paribas’s customers the means to manage volume, yield and price risks.
“Thanks to this alliance, clients of BNP Paribas whose activity is affected by the weather at any point along the supply chain may now cover against increased costs, offset declines in turnover, or limit the volatility of their financial results from one year to the next,” says Dr. Jean-Louis Bertrand, Director of Research and Development of Meteo Protect.
“This exclusive partnership allows our customers to analyze and better understand their exposure to changing weather. This approach is fully in line with our purpose to serve our clients better by offering innovative services to support the growth of their business in a sustainable manner, “says Mr. Frédéric Rochoux, Head of Business Development Business in Retail Banking in France of BNP Paribas.
Effects of climate change mean unexpected new winners, and losers, in finance.
In what may be viewed as a fable for the times, scientists are looking to climate data to explain how traditional safe burrows have become hunting grounds and food chains have been upended. Risk managers are struggling with the same, confronted with the unexpected new threats, and opportunities, arising from the effects of climate change.
In a shocking twist that is baffling scientists, the cat is not only getting the mice, but the catfish is too. Whilst the hunt of mice by cats has become an idiom for the constant pursuit of one’s prey, it was hardly to be expected that this cartoonish relationship would one day extend to catfish too. Yet, in an article recently published by the scientific journal “Journal of Arid Environments”, Australian researchers have the grisly evidence, having discovered the bodies of Notomys alexis, or Spinifex hopping mice, in the stomachs of almost half of the lesser salmon cat-fish sampled in the Ashburton River of Northwest Australia.
Millions in revenue lost for delays, cancellations and rerouting of sports events
It was the first day medals were to be awarded for the Olympic rowing regatta, and yet no racing was taking place. Rain and persistent strong winds lashed the Rodrigo de Freitas lagoon in Rio de Janeiro leading to the postponing, and eventually, the cancellation, of racing, with organizers and team managers scrambling to prepare a revised schedule for the following day. Similarly, tennis competitions were delayed on outside courts.
In fact, the weather has been a hot topic for a number of sports this year. In June, it sparked outrage among players in the French Open, with the first complete cancellation of matches at the French Open since the year 2000 and other damp days resulting in delays and frustrations from players and organizers alike. Guy Forget, the Director of the Roland Garros Tournament, took the brunt of criticism for the controversial decision to play as long as possible, even in conditions considered difficult if not dangerous, by the competitors.
It is the season of summer vacation, and one would be hard-pressed to find anyone not spending a considerable amount of time contemplating the weather and how it may be enjoyed or coped in the weeks ahead. The considerations are endless: when buying airline tickets and praying fights aren’t delayed or cancelled, packing for all eventualities (despite increasing limitations on baggage by airlines in recent years), and when booking tours and activities in advance, to name a few. However, despite all this attention to the weather, the possibilities for comprehensive insurance coverage for all aspects of the travel industry remain extremely limited.
Presently, the largest proportion of insurance for the travel sector is for airlines insuring against business losses due to aircraft damage or loss, in the same way that travellers can insure for enhanced medical expense coverage, trip cancellation/interruption coverage due to work reasons and involuntary job loss, emergency travel, etc. For both sides of the equation, the traditional insurance scheme usually entails a standard one-fits-all cover, a deduction, and a field loss assessment. For both, weather risks are not widely taken into consideration and the opportunities for more comprehensive and effective insurance for all aspects of the travel industry have surprisingly not been widely embraced.