MSI Guaranteedweather

MSI GuaranteedWeather, founded in 1999, is a wholly owned subsidiary of Mitsui Sumitomo Insurance (MSI) specializing in parametric weather insurance and derivative solutions.

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Provides insurance and financial products that automatically pay out when weather conditions deviate from agreed thresholds.

MSI GuaranteedWeather, founded in 1999, is a wholly owned subsidiary of Mitsui Sumitomo Insurance (MSI) specializing in parametric weather insurance and derivative solutions. The company helps businesses mitigate financial risks associated with abnormal weather conditions, offering automated payouts based on predefined weather thresholds without the need for loss documentation. Headquartered in the U.S., MSI GuaranteedWeather operates with Hannover Re as its capital partner and is a member of the Weather Risk Management Association (WRMA).

The company serves a diverse range of industries, including events, agriculture, energy, and hospitality, with tailored solutions for rain, snow, temperature, and wind-related risks. Its parametric contracts are designed to trigger payouts automatically when weather conditions breach agreed-upon levels, providing businesses with predictable financial protection. The company's leadership includes Brad Davis as President and Bradley Hoggatt as Chief Operating Officer. While specific financials are not publicly disclosed, its backing by MSI and Hannover Re underscores its stability in the niche weather risk management market.

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Who buys this

  • Event organizers (concerts, festivals, weddings)
  • Ski resorts and winter tourism businesses
  • Agriculture and farming operations
  • Energy and utility companies
  • Golf courses and outdoor recreational facilities

Strengths and what to watch

Strengths

  • Backed by Mitsui Sumitomo Insurance and Hannover Re, providing financial stability and reinsurance capacity.
  • 25+ years of expertise in parametric weather risk solutions, with a focus on automated payouts.
  • Customizable contracts tailored to specific industry needs, from snowfall for ski resorts to rainfall for outdoor events.

Watch for

  • Dependence on third-party weather data providers, which could introduce accuracy or latency risks.
  • Niche market exposure; demand for weather derivatives fluctuates with climate patterns and economic conditions.
  • Limited public disclosure of financial performance or client retention metrics.

Key Information

Founded
1999
Headquarters
U.S.

Frequently Asked Questions

What is MSI Guaranteedweather?

MSI Guaranteedweather is a U.S.-based provider of parametric weather insurance, founded in 1999. It offers automated payouts when predefined weather thresholds are breached, covering risks like rain, snow, or temperature extremes. The company is a subsidiary of Mitsui Sumitomo Insurance and partners with Hannover Re for reinsurance.

How does parametric weather insurance work?

Parametric insurance pays out automatically when objective weather data (e.g., rainfall levels, temperature) crosses agreed thresholds, without requiring damage documentation. MSI Guaranteedweather designs these contracts for industries like agriculture or events, using third-party weather data to trigger payouts swiftly, reducing claim processing delays.

Which industries use MSI Guaranteedweather's solutions?

The company serves event organizers, ski resorts, agriculture, energy firms, and outdoor venues. Examples include rain insurance for weddings, snowfall guarantees for ski operators, or temperature protection for utility companies. Contracts are customized for each sector’s specific weather risks and financial exposure points.

Is MSI Guaranteedweather financially stable?

Backed by Mitsui Sumitomo Insurance and Hannover Re, MSI Guaranteedweather has strong reinsurance support. While it doesn’t disclose detailed financials, its 25+ years in weather risk management and corporate affiliations suggest stability in the niche parametric insurance market.

What are the drawbacks of parametric weather insurance?

Payouts depend on third-party weather data accuracy, which may have latency or coverage gaps. Demand fluctuates with climate patterns, and contracts don’t cover indirect losses. MSI’s niche focus also means fewer alternatives if weather derivatives become less viable in certain regions.

Who leads MSI Guaranteedweather?

Brad Davis serves as President and Bradley Hoggatt as Chief Operating Officer. Their leadership oversees the company’s parametric product development and industry-specific solutions, leveraging decades of expertise in weather risk management under the Mitsui Sumitomo Insurance umbrella.

Sources

  1. www.guaranteedweather.com — Company overview, product offerings, and industry focus.
  2. www.linkedin.com — Corporate structure and subsidiary relationship with Mitsui Sumitomo Insurance.
  3. www.linkedin.com — Leadership details (Brad Davis as President).
  4. www.linkedin.com — Leadership details (Bradley Hoggatt as COO).