Extreme and fluctuating weather is expected to increase in the this century due to climate change. While major weather events have caused havoc across the globe in the last year, the brunt of extreme weather due to global warming is not yet considered to be occurring. So with an unpredictable weather future, new forms of insurance to protect from the impacts of this weather is beginning to grow.
A company called WeatherBill was founded by two former employees of Google, David Friedberg and Siraj Khaliq. The purpose of the company is to provide insurance to farmers across the globe to protect them from the aforementioned extreme weather events. Such companies are expected to grow in number and popularity due to the unpredictable nature of climate change.
The company employs both climatologists and software engineers in order to generate statistics regarding weather extremes and the areas to be hardest hit. The company is then able to use this information to sell insurance to farmers across the world. The company will also pay farmers without requiring claims but simply based on the weather events to which their farms are exposed at a given time.
The company specializes in farmers due to the harmful effects of increasing global temperatures and weather extremes on crops worldwide. CEO of WeatherBill, David Friedberg, stated: “More than ninety percent of crop losses are due to unexpected weather and climate change is increasing the frequency of extreme weather events.” The $3 trillion agricultural industry is one of the most susceptible to weather, which makes insurance both a necessary and profitable arena.
Increasing the expansion capability and security of the company was recent investments by Google Ventures and Vinod Khosla, a venture capitalist. In total, $42 million was invested into WeatherBill by these two sources.