Weather Risk Transfer
Water and wastewater utilities of all sizes face significant cash management and budgeting challenges during droughts and extreme wet periods. To combat these adverse weather events, Lotic Labs offers Weather Risk Transfer - a weather hedge mechanism that protects utilities.
In return for a fixed premium, utilities receive automated payouts from large, established underwriters and insurance companies in the event of sustained inclement weather. Payouts are determined by environmental data collected by trusted third parties, which means there is no lengthy claims process or administrative burden. Coverage is also customized for the level and type of protection desired by the utility.
Lotic's Weather Risk Transfer enables managers to minimize revenue volatility and stabilize budgets for future years. This prevents cash shortfalls and the deferral of important maintenance projects. It also ensures that bond covenants are not breached, and signals to ratings agencies that adequate risk mitigation efforts have been taken.
Click below or contact us to begin your risk assessment and learn more about how Weather Risk Transfer can help your utility.