Imagen
Weather derivatives enable ski resorts to hedge weather conditions (temperature/humidity/wind) that prevent from producing artificial snow as well as the lack of snowfall. Cash flow smoothing throughout seasons is benefitial for this industry which is consistently exposed to weather risk.

For any shareholder who is not diversifiying weather risk from their portfolio, a weather risk management strategy is absolutely essential.

 
 
Imagen
Medicines consumption shows consitent correlation with weather variability. Financial weather risk management techniques enable CFOs in the Pharma industry to stabilize cash flows neutralizing the effect of weather in sales. The result is the reduction of the company WACC (weighted average cost of capital) thanks to the risk minimization.