Client NEED
A gas provider is looking for a risk transfer solution against mild temperatures in winter that could lead to a drop in gas consumption and consequently decreased revenue for the client.
Our solution
MILD WINTER Protection financially secures the income of gas suppliers against consumers’ low demand that is directly correlated to outside temperatures. Together with the client we predefine the threshold and the exit and agree on a payout amount per each HDD below the threshold.
THE RESULT
In 2001 and 2016, the outside temperatures were significantly warmer than usual leading to a decrease in gas consumption. As a result, the company received 48% and 76% of the Sum Insured respectively from AXA Climate.