What type of weather events do people use weather certificates for?
What are Weather Certificates?
Is a Weather Certificate an Insurance product?
Weather Certificates have similar characteristics to some financial options in that they are based off an index. The index is made up of weather events. You pay a premium to buy certain rights associated with the index, for instance rain or temperature events over a trigger/strike. They are simply based off the probability of an event occurring.
Any weather event that may cause financial discomfort can be covered by the use of a Weather Certificate for example, you may be farmer looking to cover the risk of a dry season, an events coordinator worried about rain on the day of the event, an outdoor restaurant worried about a wet spell, or a golf course owner looking to make up lost green fees. Weather Certificates are universal in their application as we are hedging events as a consequence of the weather.
Although you are insuring the effects that weather has on you financial viability they are not insurance products. Rather a Weather Certificates is classed as an over the counter derivative and thus regulated as such by the financial markets regulator.
Are there any applicable stamp duties or government charges?
There are no stamp duties or GST. The reason is that Celsius Pro is the issuer of the Certificate it comes to you net of any ancillary charges.
Who is ultimately responsible for settlement of payment of a Certificate that has expired where a payment is due?
It is Celsius Pro management mandate that it hedges all certificates with its counter-parties who are all global reinsures. Therefore, performance risk is associated with the counter-party we hedge your Weather Certificate with.
Are Weather Certificates regulated by anyone and what happens if I have a dispute?
Weather Certificates are over the counter financial products regulated by ASIC. CelsiusPro is also a member to the Australian Financial Complaints Authority (AFCA). This is outlined in our Financial Services Guide.
How soon can a Weather Certificate be booked?
They can be booked 20 days out from the risk period. They cover a monetary value chosen by the buyer that covers the potential damage caused by the weather event.
Can I lose more than my Premium once I have purchased the Certificate?
All you can lose is the premium.
Can I sell my Certificate before it expiries?
They are generally not tradable once you have purchased them.
Do I need to submit a claim once I feel that a weather event has been triggered?
No. Any damage caused by the event does not have to be assessed. The damage is the consequence of the weather event occurring. The Weather Certificate covers the weather event. Weather Certificates are non-indemnity based financial products.
If the events described in a Certificate are triggered what is the process and when shall I receive payment?
Once a Certificate expires and an event has been triggered the binding results will be emailed to you after 5 days for certificates based of an automatic weather station, and 20 days when based off a grid location. If you have an online account you can also see the non-official results day by day. Then to allow for actual settlement it may take up to 15days further before they funds arrive in your account.
Who is the gatekeeper of the weather data?
The BOM is the gatekeeper. Weather events are automatically down loaded into the CelsiusPro software daily. If you have a dispute about the actual events then you need to take this up with the BOM. Celsius Pro just uses their measurements.
When are weather measurements made?
As it is the BOMs data we use in structuring the certificates we follow their data collection protocols. If it is not clear as to when the times for measuring data start and end then contact the BOM.
What is grid data?
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