Insurance Products

Energy Weather Risk

Insurance Products

Energy Weather Risk

As a leading global provider of weather risk management products, the Sompo Global Weather team offers weather protection products tailored to the unique weather-driven challenges for our clients across the energy value chain.


Target Clients

We have significant experience creating value-added solutions for our global clients including utilities, independent power producers, upstream gas producers as well as renewable energy (wind, solar and hydro). 

Products

WeatherLock® – financial products targeted to both the traditional energy and renewable energy sectors, addressing volatility in weather-driven demand and supply. These can be indexed to temperature, rainfall, snowfall, humidity, solar radiation, wind speed and other weather variables as required:   

  • TempLock® – Protection against variability in temperature (average, maximum and minimum) 
  • HydroLock® – Precipitation protection for hydro-generators in low rainfall years 
  • WindLock® – Cumulative production floors and swaps to stabilize earnings for wind farms 
  • SolarLock® – Cumulative production floors and swaps to stabilize earnings for solar projects 

CommodityFlex® – financial products designed to mitigate variability in revenue arising from weather-driven volatility in demand correlated with commodity prices.  

  • PowerFlex® – Protects against the interaction of temperature and electricity prices 
  • GasFlex® – Protects against the interaction of temperature and natural gas prices 
  • OilFlex – Protects against the interaction of temperature or precipitation and global oil prices 

Renewable Energy Risk Management

  • Single asset and portfolio modeling for (re)financing 
  • Overlay Hedges for Wind-Linked Bonds 

Capacity

  • Significant transactional capacity 
  • Products can be delivered on a global basis as either derivatives, insurance or (re)insurance 
  • Contracts can range in duration from several days to several years and be written in a variety of world currencies