Highs. Lows. Thresholds.
Daily readings or a count of days above or below an agreed level.
Too hot. Too cold. Too far from normal.
Temperature changes how people buy, how crews work and what energy costs.
Two directions, one question
How does temperature move your numbers?
The measurement needs to reflect the financial effect you are trying to address.
A hot season can raise costs.
A cool one can reduce sales.
- Outdoor work
- Heat can reduce productive hours.
- Buildings
- Cooling demand can increase.
- Seasonal goods
- A cool summer can soften demand.
Accumulated heat or cold.
Degree days can represent heating or cooling demand over time.
The measurement matters
Define the reading before the risk begins.
- Daily high or low temperature at a named station
- Days above or below an agreed temperature
- Accumulated heating or cooling degree days
Explore a parametric insurance policy or a financial contract built around this measurement.
How the structure is chosenWho it’s for
Where this becomes relevant.
Outdoor venues and attractions
Heat waves keep visitors away from outdoor attractions and events, cutting admissions, food and beverage revenue.
Contractors and outdoor crews
Rest breaks and stop-work limits in extreme heat cut productive hours while payroll stays the same.
Building owners and managers
A hot summer pushes cooling costs past budget across a portfolio of buildings.
Heating-fuel distributors
Heating oil and propane sales fall in a mild winter while delivery trucks and drivers still cost money.
HVAC companies
A mild summer can reduce cooling-service trips while payroll and fleet costs continue.
Explore the industry perspectiveBefore we talk
A few useful answers.
What is a cooling degree day?
A measure of how hot a day was. Each degree the day's average temperature is above 65°F counts as one cooling degree day. Seasonal totals track cooling demand closely, which is why many contracts use them.
What is a heating degree day?
A measure of how cold a day was. Each degree the day's average temperature falls below 65°F counts as one heating degree day. Seasonal totals track heating demand closely, which makes them useful for fuel distributors and building owners.
Can protection focus on a cold snap or a whole winter?
Both approaches are possible. Daily lows and counts of freezing days can focus on short periods, while heating degree days measure cold across a season. We compare them with your operating costs and revenue.
Your next step
Start with your exposure.
Bring us the question. We’ll help you understand the exposure and the options available.
Prefer email? Contact our teamUseful for a first conversation
- Your business locations and risk period
- Revenue, costs and weather-related interruptions
- Existing insurance and relevant weather records
You don’t need everything ready to get in touch.