Speedwell Weather Derivatives (SWD) are experts in analysing,
structuring and placing weather risk.
In our capacity as a regulated independent consultancy
we are able to assist companies in quantifying their weather exposure and then to
structure and ultimately place such risk with the weather derivative risk-taking
community. Since its establishment in 1999, SWD has cultivated extensive relationships
in the weather risk-taking community amongst all types of participants. These include
insurance companies, banks, energy companies and investment funds. We do not act
as principals ourselves and nor are we exclusively aligned to a single principal.
We are therefore able to find the best price available for your weather protection
using an understanding of the appetite that each organisation has for different
types of weather risk, and how they themselves place that risk, while respecting
any guidelines issued by the client, for example, in terms of counterparty credit
quality.
The method of risk placement also needs to be carefully
designed and will depend on the size and complexity of the hedge.
SWD has completed a number of assignments involving analysing,
structuring and placing weather risk in a range of sectors including energy, renewables,
construction, agriculture, retail, tourism and hospitality. SWD is regulated by
the financial regulator in the United Kingdom, the Financial Conduct Authority.
More Information
Lack of weather observations is one of the biggest obstacles encountered when structuring
a weather risk management program.
Problem:
Improperly selected weather stations lead to an unacceptable amount of basis risk.
Inability to structure a hedge due to a lack of weather data
Solution:
Installation of a weather station specifically designed to meet the specific needs
of the project.
Historical analysis conducted using modelled data.
Installed weather stations can be used for primary settlement, as back-up station(s),
or as part of a quality control program used for the creation of certified settlement
data.
Speedwell Weather
With over ten years of experience in the weather market Speedwell
is in the unique position to offer the best possible solutions for our clients.
Our staff has ample real-world experience with station selection and installation
(Africa and South America)
Speedwell is the official provider of settlement data for the CME Australian Weather
Contracts. In addition to exchange based contracts we have settled numerous OTC
transactions.
We have extensive understanding of what clients need to be comfortable with a deal.
Independent 3rd party confirmation of observations; readily accessible observations
for tracking a deal, and the transparency of methodology are all key components
for a successful project.
Coupled with Speedwell risk placement capabilities we are able to provide a complete
solution for our clients (data -> pricing / structuring -> auction -> settlement)
Weather Station Installation
Weather Station Installation / Settlement Data
(overview)
- Clarify project goals
- Equipment selection
- Equipment procurement
- Land rights acquisition
- Additional materials procurement
- Obtain local labor / site preparation / station / installation
- Data processing
- Site maintenance
- Settlement data
- Site decommissioning
Speedwell Weather Derivatives (SWD) is pleased to be able to provide companies
looking to verify or contest claims for damages relating to weather with access
to weather data from across the globe. With our extensive archives of historical
data, we can also combine such information with a deep understanding of what
constitutes normal conditions? The services we are able to provide include the
following:
Provision of hourly weather data, where
available, to verify the occurrence of specific weather events leading to claims
for direct or indirect indemnification.
Provision of daily weather data including,
where available, maximum gust wind speed, maximum and minimum temperatures, snow
depth, sunshine hours, humidity.
Provision of a meteorological opinion on general weather conditions relating to the time and location of a weather insurance claim.
Statistics relating to weather conditions
over a period to long term averages or return periods?
Access to archives of historical forecasts.
This can give an indication to what extent a weather event was predictable and
therefore the extent to which damages might have been reasonably mitigated.
Phil Hayes (UK)
or David Whitehead (U.S.)
UK Office
U.S. Office
+44 (0)1582 465 551
+1 (0)843 737 4843