Munich Re launches weather desk

Munich Re, the world's largest reinsurer, has established a New York-based weather derivatives desk in its Munich American Capital Markets division.

The desk is run by Paul Murray - a one-time Enron weather trader who has also worked at Goldman Sachs. Murray reports to Ken Bock, head of the capital markets unit in New York. Munich Re has also hired Vivek Pawaly - formerly of Boston-based catastrophe modelling company AIR - to work as a derivatives structurer.

Pawaly said Munich Re will trade in both the over-the-counter and the exchange-traded weather derivatives markets. The company is also looking at the potential of offering risk management services to the agricultural sector, Pawaly added.

Both Pawaly and Murray will attend the Weather Risk Management Association meeting that starts tomorrow in New York. The trade association will release details of its annual weather derivatives survey later this week.