Capital Markets
Connect Weather Risk With Capital
Every risk-transfer market ultimately depends upon someone willing to assume the risk.
For the Weather Risk Economy to grow, the universe of available risk capital must grow with it.
Banks, trading firms, hedge funds, insurance-linked securities investors, alternative capital providers, and other financial institutions can each play a role in absorbing weather-related financial exposure. Their mandates differ. So do their return requirements, risk tolerances, structures, and regulatory environments.
ClimateDelta can help make weather risk easier for capital to evaluate.
A weather exposure that has been identified, analyzed, modeled, priced, and preserved within a System of Record is inherently easier to understand than one reconstructed from a collection of spreadsheets and individual models. Portfolio analytics can help reveal diversification, concentration, correlation, expected outcomes, and the behavior of the risk under different conditions.
The platform can also support different financial structures.
Some risks will belong naturally on insurance or reinsurance balance sheets. Others may fit derivatives or structured products. As the market matures, additional mechanisms for transforming and financing weather risk are likely to emerge.
ClimateDelta provides an operating foundation capable of supporting that evolution.
Capital partners bring the risk-bearing capacity.
ClimateDelta helps make the opportunities visible, understandable, and operable.
More transparent risk can attract more capital. More capital can support a larger market.