Weather Pricing Engine

Parametric Weather

Structure Type

CDD Collar

seasonal strip

Expected Loss

$2.8m

illustrative

Attachment

110%

of climatology

Limit

$12m

annual aggregate

Pricing Engine

Trigger Design

Index based on population-weighted daily CDD across five metro stations.

Settlement Logic

Monthly accrual with seasonal aggregate cap and mid-strip true-up.

Scenario Set

Base, warm bias, El Nino analog, and grid stress overlays.

Risk Output

Expected loss, attachment probability, exhaustion probability, and stress spread.

Quote Controls

Measurement window

Jun 1 - Sep 30

Reference basket

Dallas, Houston, Austin, San Antonio, Corpus Christi

Model blend

Observed climatology, analog resampling, and bias-corrected forecast surfaces