Catastrophe
Eyes on the storm
Supranationals
For whom cat risk tolls
Reinsurance derivatives
Raging California wildfires trigger transmission emergency
The California Independent System Operator Corporation (CAISO), which operates California’s open-market wholesale power grid, has issued a transmission emergency warning following four days of wildfires that have sparked the biggest US evacuation since…
Rocks and hard places
Despite the environmental, political and infrastructure challenges faced by US coal, some believe high-sulphur grades could soon be back in fashion. David Watkins investigates
Head in the sand
There is still scepticism among energy market participants around Mifid. Some believe they are exempt, while many more are waiting to see what others will do. In view of the significant changes Mifid will make to the energy markets, these are not the…
Operating optimally
The increase in energy trading in recent years has brought significant opportunities but also a rise in operational risk, leaving systems struggling to keep up. Barney Brown at Detica identifies some areas of operational risk deriving from both internal…
Internal models in Solvency II
Comment
Gas storage parking lot full
More US natural gas storage is needed if price spikes are to be alleviated in the coming months experts believe, but construction interest is limited, finds David Watkins
Dealing with a volatile gas market
Eric Fishhaut explores the current state of volatility within the US natural gas market and outlines how hedging with 'strips' can be used to secure long-term prices that are variable, but known
More than just talking about the weather
Energy Risk launched the Environmental Risk brand on October 17, with an e-symposium on the weather risk market, which attracted over 500 online delegates. A range of other online conferences on emissions and renewables will follow
Weathering oil risk
Managing weather risk is increasingly important for petroleum companies. Murad Jivraj looks at how optimal oil risk management can be obtained through combining traditional structured products with new weather derivatives
Risk management for LDCs
US Gas Distribution Companies, long experienced in managing volumetric risk, now face market risk, high commodity prices and credit risk. Matthew Frye looks at strategies to model these risks in aggregate
Weathering power's demand
Using temperature forecasts to predict power demand has some major pitfalls. Here Martin Fischer and Michael Grossman suggest ways to glean more from forecasted temperature data
Into the tempest
Natural catastrophe risk models suggest that insurers are significantly under-capitalised. Firms are tapping the capital markets for billions of dollars in additional reinsurance capacity, but it may not be enough to avoid damaging rating downgrades…
Weathering the impact of stormy price hikes
At the start of the 2006 hurricane season in the Atlantic Basin, Zachary Simecek takes a look at the impact on the energy markets
Catastrophe bonds
Talking point
March 2006 - Riding the rollercoaster
US natural gas prices have proven to be susceptible to weather-related price swings. Andy Weissman looks at what a risk manager should consider when designing a price risk management program
Coping with setbacks
Most risk managers and employees in energy companies are familiar with the concepts of market risk and credit risk, but operational risk is receiving more attention in corporate boardrooms these days, writes Sandy Fielden
Business continuity in financial services firms
We were reminded in 2005 that significant business disruptions continue to occur in varying forms and levels of intensity. The London bombings of July 7, the devastation caused by Hurricanes Katrina and Rita in the late summer and the New York City…
After the storm
Last year's devastating US hurricane season hammered home the link between energy and weather. But some believe it may also hold a key to predicting this year's weather, says Todd Crawford of Weather Services International
Market focus - Sky-high cost of clean air
US emissions allowance prices for sulphur dioxide (SO2) rose nearly 200% in 2005 and 300% during 2004. Sandy Fielden of Logical Information Machines examines the SO2 emissions allowance market and discovers which market drivers are forcing prices ever…
The View on Flu
Should life companies worry about bird flu? Swiss Re says yes, but Munich Re and a host of primary insurers claim the risks can be overstated. Richard Irving reports
2005 in review
The energy markets were a dynamic place to be in 2005, with high volatility and an explosion of new players hitting the scene. Inevitably, though, it wasn't all smooth sailing. Energy Risk looks back over the highs and lows of 2005, from the launch of…
Options - A plan for all seasons
Selling natural gas options on a market that is adhering closely to a seasonal tendency can be a powerful strategy for an option seller, write James Cordier and Michael Gross