Adapting to a changing global climate and volatile weather events

Does the weather affect your business?

An increase in volatile weather globally is presenting heightened risk exposure across many industries. We have seen an increase in extreme events - such as cyclones, wildfire, severe convective storm, and flooding - and generally more severe conditionsl worldwide.  

Aon helps businesses develop cutomised solutions allowing them to manage the financial impact of adverse weather on revenues and costs. From extreme low and high temperatures causing delays on a construction project, to excessive rainfall slashing summer sales for drinks, firms can now take action to protect their bottom line against increasingly volatile weather. 

Aon’s weather solution helps clients access parametric (index-triggered) solutions that protect against potential losses from severe weather conditions, and that are tailored to your balance sheet.

How weather insurance works

Data and analytics at the heart of the solution

Weather data drives the efficacy of the parametric weather insurance cover. We use a combination of traditional meteorological/weather station data in addition to more granular gridded data from satellites.

Drilled-down to 250m x 250m grids, this data enables clients to obtain accurate insights on how weather will impact their business while reducing the basis risk by utilising interpolated data to offer specific granularity for risk locations.

Clients can benefit from access to independent weather data from Celsius Pro – a specialist in structuring tailored index solutions to mitigate the effects of adverse weather.

This data is coupled with our analytical expertise to understand and validate available weather data and its impact on a client’s business. We collaborate with the client to create viable risk protection and seek competitive market pricing to protect balance sheets from adverse weather that may occur.

How weather insurance works

Weather solutions factors

Our expertise and network

Aon’s global Weather & Climate Risk Innovation network will help clients evaluate the potential impact of climate and/or weather risks on their operations, as well as develop comprehensive risk financing strategies to improve business resilience. The global network brings together sector knowledge, experience and expertise from across Aon, supported by the firm’s advanced data and analytics, and partnerships with other innovative companies.

Given that most businesses are exposed to weather volatility at different points in their operations, there is clearly a demand for tailored and effective climate and weather risk solutions.

Our data and technology enables us to offer firms customised parametric solutions that provide protection for the climate volatility and weather events most likely to adversely impact their revenues and profitability.

Benefits of parametric

The benefits are numerous, but primarily it is time and transparency that have driven demand, specifically:

  • Agreed value claims: Clients know when and how much they will receive after a catastrophe occurs.
  • Independent settlement agent: No loss adjusting – the data of the event captures the loss.
  • Alternative capital: Additional capacity players, alternative structures, and bespoke design allow businesses to respond to their own pressing needs.



- 88% of companies’ profitability is directly impacted by the weather; Weather Risk Management Association 2016
- Financial impact of the ‘beast from the east’ - Freezing weather sends a shiver through the economy;


Aon UK Limited is authorised and regulated by the Financial Conduct Authority. FPNAT412