Weatherbill…a market for wacky weather protection
One of my favorite blogs, Paul Kedrosky’s Infections Greed has a post today on a new company called WeatherBill.
In effect, a tool to allow people to create their own weather-related
short- and long-term insurance policies — and it will appeal to a
broad swath of companies whose business are weather-affected.
It appears to essentially be a marketplace where people can first evaluate what bad weather costs them in terms of sales, then they can purchase short or long term insurance plans to cover themselves from these losses going forward. On the other side it gives investors the opportunity to own these contracts or create their own that businesses can purchase. It appears it may definitely take some work to build up an efficient market, but I believe that the rapidly changing and increasingly sporadic weather makes a service like this definitely worth watching.