|
Newark, Calif. - June 15, 2001 - Risk
Management Solutions (RMS) and Earth Satellite Corporation (EarthSat)
today announced the release of enhanced historical U.K. weather data
and the integration of that data into RMS' Climetrix® weather
derivatives trading and risk management system. The new data set
covers 12 weather stations throughout the U.K. and represents a
major advancement in the quality of information that is available to
global weather market participants.
For the past 3 years, RMS and EarthSat have collaborated on
improving the reliability of the historical data used in the weather
market for pricing and risk management. Over that time, the
companies have jointly developed methodologies to address
deficiencies in raw historical data, with a particular focus on
identifying and removing the effects of measurement discontinuities
caused by historical weather station events such as instrument
changes and station movements. In July 2000, RMS and EarthSat
released enhanced historical data for 200 U.S. weather stations,
providing a reliable historical record free of the effects of
measurement discontinuities.
The new U.K. data have been developed using the same analytical
methodologies employed in the U.S., coupled with extensive local
research by RMS and EarthSat on events that have affected U.K.
weather stations. Auguste Boissonnade, Principal Scientist at RMS,
said, "This is the first time that any organization, including the
U.K. Met Office, has compiled complete information on the histories
of individual weather stations in the U.K. With this research and
accompanying statistical analysis of the data, we have identified
periodic measurement discontinuities in the historical data for all
of the 12 stations analyzed. Our enhanced data have been adjusted to
be consistent with how weather is currently being recorded,
providing a more reliable historical record for weather derivative
traders and end-users."
In the U.S., recognition of the impacts of measurement
discontinuities on historical data has been an important element of
improved price discovery and market transparency as the weather
market has grown rapidly over the past several years. More than 70%
of active traders in the U.S. market utilize RMS and EarthSat's
enhanced historical data as an integral part of their trading
operations.
Outside of the U.S., data quality and accessibility have been major
obstacles to the emergence of weather trading. Recent statistics
indicate that European transactions comprise less than 2% of global
weather trading volumes. Diego Wauters, Global Head of Insurance
Derivatives at Société Générale in London, said, "The release of
accurate, standardized data for the U.K. is a major development for
the European weather market."
In addition to the enhanced data, RMS and EarthSat will be providing
clients with a cleaned database of original historical data prior to
enhancement as well as with daily feeds of prior day recordings and
medium-range forecasts. This suite of U.K. data has been made
available to all current Climetrix licensees with the simultaneous
release today of version 2.3 of the Climetrix™ system.
Climetrix is an Internet-based application that provides integrated
access to all of the data, advanced pricing tools, and portfolio
management capabilities necessary for successful participation in
the weather market. The application can be accessed at
www.climetrix.com.
About RMS
Risk Management Solutions is the world's leading provider of
products and services for catastrophe, weather, and enterprise risk
management. More than 400 leading insurers, reinsurers, trading
companies, and other financial institutions rely on RMS models to
quantify, manage, and transfer risk. Founded at Stanford University
in 1988, RMS serves clients today from offices in the U.S., Europe,
and Japan. For more information, visit our web site at
www.rms.com.
Climetrix, RMS, and the RMS
logo are trademarks of Risk Management Solutions, Inc. All other
trademarks are property of their respective owners.
Next Press
Release
Back to Press
Releases Page
|
