IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Critical success factors for weather risk transfer solutions in the agricultural sector: a reinsurer’s view

  • Michael Roth
  • Christina Ulardic
  • Juerg Trueb
Registered author(s):

    Agricultural yield and commodity prices are very sensitive to weather patterns such as drought, excessive rain, or frost. Consequently, unseasonable weather can cause major losses for players in the agricultural value chain, including input providers, farmers, commodity traders, and food processors. In this paper information recorded by PriceWaterhouseCoopers on behalf of the Weather Risk Management Association is complemented by Swiss Re’s market intelligence to examine demand patterns for weather risk transfer solutions. There is a particular focus on the evolution of demand from the energy sector compared to the agricultural sector as a means of identifying the critical success factors needed for a prospering market. Our findings show that recent growth in the weather risk transfer market is mainly related to speculative trading in the energy sector. Stakeholders in the agricultural sector around the world are growing increasingly interested in weather risk transfer products. However, the lack of exchange-based instruments in this field, the relatively high basis risk between weather indexes and agricultural markets are still highly regulated, and inadequate information and training are all impeding the growth of this business.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:;jsessionid=814B0168369BCD379DCD815EB1829887?contentType=Article&contentId=1784615
    Download Restriction: Cannot be freely downloaded

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Emerald Group Publishing in its journal Agricultural Finance Review.

    Volume (Year): 68 (2008)
    Issue (Month): 1 (September)
    Pages: 1-7

    in new window

    Handle: RePEc:eme:afrpps:v:68:y:2008:i:1:p:1-7
    Contact details of provider: Web page:

    Order Information: Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
    Web: Email:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eme:afrpps:v:68:y:2008:i:1:p:1-7. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.