This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Metar Weather Offers Weather Risk Insurance to Small Business

Nemet, the former CEO of The Life Settlement Company of America in Livingston, N.J., a brokerage firm that traded life insurance policies in the secondary market, decided to create a way to bring the institutional weather derivatives market and the hedging strategies primarily used by big energy companies to the retail market.

"If we brought these out to the average retail client they would be scared of the word 'derivative,'" Nemet says. But if we used a very simple insurance product, "it would make sense to them."

"They know they have this problem, but they don't know there is a solution, nor are they looking for a solution. And so I think for us expansion is really just to bring more to specific vertical markets and really expand our reach" by developing more products and educating business on how it works and how much it costs, Nemet says.

The company is focusing on winter-weather products for the snow and ski industry, but Nemet says it is also developing a line of products for golf courses to protect against abnormally high snow or rain seasons.

The company is also looking to develop more products for places such as amusement parks, car washes and consumer retail manufacturers.

"Most people that are in the weather insurance business offer event-weather protection," Nemet says. "We truly provide seasonal weather mitigation for companies whose revenue and expenses" are weather-dependent.

Another advantage: Weather insurance is designed to pay out claims on a more frequent basis than other types of insurance.

Advanced Service Solutions, a national facility maintenance services company in Hammonton, N.J., with a snow removal division, bought a policy with Metar Weather last year after one of its large retail clients decided to switch from a per-occurrence contract to a fixed seasonal contract.

The seasonal contract could have left Advance Service at risk should there be excessive snowfall over the 2011-12 winter season. As it turned out, last winter was unusually mild, but Advanced Service Solutions had no regrets about buying weather risk protection.

"It's like having car insurance: You sleep well knowing that you have it, even if you don't need it," Brian Morse, vice president at Advanced Service Solutions, said in the Metar release.

-- Written by Laurie Kulikowski in New York.

To contact Laurie Kulikowski, send an email to: Laurie.Kulikowski@thestreet.com.

>To submit a news tip, email: tips@thestreet.com.

RELATED STORIES:







Follow TheStreet on Twitter and become a fan on Facebook.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs