Australia's $60bn-agricultural sector is set to reap the benefits of index-based weather hedging following a new team-up between an NSW-based farm underwriting agency and a UK company.
Allstate Underwriting Agencies has joined weatherXchange, the platform which helps companies access index-based weather risk protection and which provides post-trade valuation and settlement services, as new protection seller (MGA).
“The index-based nature of weather risk transfer that weatherXchange supports allows for transparent and objective coverage to be tailored to clients' needs,” said Norm Trethewey, senior underwriting manager at Allstate. “The network of rural insurance brokers that already distribute our market-leading farm indemnity-based products can now complement agribusiness protection by offering parametric solutions that cover key exposures.”
“The addition of a protection seller that is focused on Australian agriculture risk comes at a perfect time for the Australian market after another year of extreme weather,” said David Whitehead, weatherXchange co-CEO. “We view the inclusion of both specialized and general protection sellers on the weatherXchange platform as key to expanding the use of index-based weather hedging and establishing weatherXchange as the hub of weather market activity."
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