Extreme weather potential this century is creating a niche market for weather related derivatives. Energy companies are still the biggest users of weather trades and contracts based on temperatures. Look for other contract variables - - rainfall, snow, and sunshine (renewables, such as solar power or wind related contracts for wind farms are examples) tailored to meet customers' specific needs. Farmers are an obvious potential customer of weather-risk reduction financial service products. So are engineers - - big construction companies with tight deadlines and costly penalty causes could consider turning to weather derivatives as our weather gets more extreme and unpredictable.
eWeatherRisk is an example of an online firm that can offer small businesses simple and relatively cheap weather-risk coverage.
Steven-
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