MSI GuaranteedWeather, LLC, a provider of weather risk management products, has formed Vortex Insurance Agency, LLC in Overland, Kansas to sell weather risk insurance products to businesses.
The weather risk line is being offered in cooperation with Mitsui Sumitomo Insurance USA Inc. (MSU), a member insurer of the Mitsui Sumitomo Insurance Group.
The weather insurance policies, underwritten by MSU, will be sold in the U.S. to insure businesses in various industries against the risks of variations in temperature, rainfall, snowfall or other weather variables. These insurance products are not intended to replace traditional property and casualty insurance, but to supplement such insurance and help protect against significant, but non-catastrophic weather variations that may result in reduced revenue, increased costs or other disruptions in business operations.
“While protection from various weather risks has generally been available in the derivatives markets for many years, insurance based products greatly simplify the process and requirements for a business, municipality or individual to help protect itself against the risks of adverse weather conditions/events,” said MSIGW President and Co-CEO Brad Davis.
According to Davis, the offering of weather risk products in an insurance format allows medium or small-sized companies that were previously unwilling to purchase weather derivatives because of their unfamiliarity with taxation or accounting rules for derivatives to simplify (and expand) their risk management strategies. As a result, he said, risk managers may find weather insurance to be a more readily accepted path to successful mitigation of their financial exposure to weather. MSIGW will continue to market weather derivatives in tandem with the insurance product offerings sold through Vortex.
Yutaka Mouri, general manager of Mitsui Sumitomo Insurance Co. Limited, said the addition of U.S. based insurance further diversifies his company’s portfolio of exposure to weather around the globe presently being managed by MSIGW.
MSIG has a Best’s rating of A+ (Superior) and specializes in providing commercial property and casualty insurance products in the U.S. MSIG also offers risk management services, along with personal lines insurance services.
Product availability subject to licensing by jurisdiction.
Mitsui Sumitomo Insurance Co., Ltd.
MSI GuaranteedWeather, LLC
Mitsui Sumitomo Insurance USA Inc.
Vortex Insurance Agency, LLC
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