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weather risk transfer (WRT)

Weather risk transfer contracts provide holders with compensation for economic losses arising from extreme weather events.

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weather risk transfer (WRT)

Weather risk transfer contracts provide holders with compensation for economic losses arising from extreme weather events.

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Weather risk transfer contracts protect cedents against the impacts of both routine weather variability and weather extremes. First adopted by users in weather-sensitive industries like energy utilities and agriculture, the instruments are now being expanded to address the needs of other industries whose financial performance is affected by changes in the weather.