In the past, weather was often a benevolent form of nature. We took a passive approach to its affect in our businesses and daily lives. Extremes were rare and the seasons were rhythmic and predictable.
With the advent of global warming, the weather is volatile and erratic. Anomalies define the boundaries and patterns can stagnate at one extreme or another. The newly released National Climate Assessment concludes that now more than ever, the impacts of climate change are being felt upon multiple sectors of the U.S. economy. Epic droughts in California, frequent coastal flooding episodes, Superstorm Sandy on the Eastern Seaboard – more and more, businesses and lives can be upended in hours or brief moments.
With little to stop the inevitable changes, adaptation is key. Traditional indemnity insurance can cover losses, but it is a reactionary form of protection – often with caveats and addenda. Parametric weather cover, on the other hand, are a proactive, customized and comprehensive type of protection. With their evolving and streamlined process, they can be considered the new standard in a turbulent, uncertain weather world.