SmarterMarkets™ Summer Playlist 2025 Episode 5 | Theresa Kammel (Originator) & Pierre Buisson (Senior Structurer), Weather & Agro Zurich, Munich Re
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Jul 26, 2025 Theresa Kammel and Pierre Buisson from Munich Re dive into the intriguing world of weather derivatives. They discuss how these innovative financial tools help clients manage climate-related risks, particularly in the booming renewable energy sector. The conversation highlights the evolving landscape of risk in energy, agriculture, and construction. They also share personal summer reading picks, blending professional insights with a touch of leisure. It’s a captivating mix of finance, climate change, and personal stories that enlightens listeners on navigating a changing world.
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Episode notes
Expanded Weather Risk Types
- Weather risks now include volume risks like power demand mismatch and renewable generation shortfalls.
- Clients face temperature, precipitation, and wind risks impacting energy supply and demand dynamics.
Role of Weather Derivatives
- Weather derivatives pay out based on weather indexes to compensate clients for adverse weather impacts.
- They provide tailored financial protection to manage volume and operational risks linked to weather variability.
Journey to Weather Derivatives
- Pierre transitioned from advising governments on carbon policies to energy trading, where he realized volume weather risk was underestimated.
- He saw weather derivatives as a key tool to price and manage renewable supply risks amid the energy transition.
