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Weather Risk Pyramid

Weather Risk Impact Dynamics

Essentially, 90% of your most common weather (adding the 20% and the 70% of the two bottom parts of the pyramid) will likely be benign or without major problems, and will only on average cause 10% impact to your financial results.

However, the top 10% of your worst adverse weather (adding the 3% and the 7%) will bring about 90% of your damage and financial losses.  Obviously, the top 10% of the worst weather does not happen very much, but when it comes you will want to know about it and you will want the greatest lead time and highest accuracy possible.

That is why so many institutional clients turn to AFC.

 


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