1 / 19

Growing the Weather Market with Benchmark Industry Indices

Growing the Weather Market with Benchmark Industry Indices. STORM EXCHANGE, INC. Storm Exchange is…. Data solutions: industry specific, proprietary weather-indexes Analytic solutions: technology to correlate corporate profit to weather Risk management solutions:

ashanti
Download Presentation

Growing the Weather Market with Benchmark Industry Indices

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Growing the Weather Market with Benchmark Industry Indices STORM EXCHANGE, INC.

  2. Storm Exchange is… • Data solutions: industry specific, proprietary weather-indexes • Analytic solutions: technology to correlate corporate profit to weather • Risk management solutions: • risk transfer: price and execute weather-indexed OTC derivative contracts • risk mitigation: optimize operations and alert customers • WeatherProtected® consumer programs: • customer rebate programs to drive demand, increase sales and build brand value. The next frontier for marketers.

  3. Sales & Marketing Strategy Channel Distribution • Marsh & McLennan Companies –targeting14,000 of 240,000 customers by industry worldwide • McGraw-Hill Companies – Aviation, Construction, Energy and… Standard & Poor’s • Others: • Branded Networks • Commercial banks • Investment Banks • Multi-brand clients

  4. Strategy Educate, Correlate, Transact then Replicate, Replicate….

  5. 2007: Timing is Everything Construction “…until there is a sustained break in the current weather patterns, there is uncertainty surrounding the volume outlook for the quarter.” Martin Marietta Materials, Inc. (NYSE: MLM) Q1 2007 Earnings Report Retail “erratic weather across the United States negatively affected our spring selling season” Home Depot (NYSE: HD) Q1 2007 Earnings Conference Call Travel “…a significant number of weather related events impacted the Company's first quarter results “ American Airlines (NYSE: AMR) Q1 2007 Earnings Report

  6. What does weather risk management mean to a CFO?

  7. How do you monetize the need? Is a $200B weather market in 5 years feasible? The 4 Step Plan…

  8. Step 1: Attract New Counterparties A New Value Proposition Today Tomorrow

  9. Step 2: Leverage Industry Standards

  10. Benchmark the Weather

  11. Retail Example

  12. Aviation Example

  13. DFW Rain Delay Index (June 2007) Overview: • Cumulative calculation of days with greater than 0.1 inch measured at DFW • As expected, very strong positive correlation between increased number of days with measurable precipitation and delays. AA Weather Delays (June)

  14. Step 3: Create Client Loyalty through Rich Experience and Recurring Touch Points

  15. The Widget, the White Paper and the Forecast

  16. Step 4: Leverage indices to attract a broader set of customers and markets • Weather Contingent Commodity Contracts • Futures on OTC Baskets • Indexed-Rebates • Indexed-Bonds • Parametric Hurricane Cover (Synthetic Reinsurance) • Weather-Rated Equity Portfolio Strategies • ETFs

  17. Exciting Time for Weather Market • Investments in alternative distribution models • Explosive growth of commodities • Interest in non-correlated asset classes • Focus on climate change and weather volatility

  18. David Riker President & CEO Storm Exchange, Inc. david.riker@stormexchange.com

  19. Prove Industry Correlations

More Related