Vaisala, a Finland-based company that deals in environmental and industrial measurement has formally acquired Speedwell Climate Ltd. This move will help the organizations get newer tools to avoid exposure to extreme weather-related exchange losses and marks a new phase of Vaisala’s entry into the insurance sector.
Acquisition of Speedwell Climate Ltd
With the finalization of the acquisition of Speedwell Climate Ltd, a predominant player in climate and environmental risk transfer, Vaisala is expected to expand its subscription-based revenue streams. Speedwell Climate is a market incumbent based in Harpenden United Kingdom with a subsidiary in the United States; this company has been offering data and software to structure, price, and settle index-based Climate Risk Transfer Contracts.
The acquisition of Speedwell Climate follows Vaisala’s plan to increase annuity by focusing on data-based services. Incorporating the knowledge possessed by Speedwell Climate, Vaisala has the goal to provide organizations with the necessary tools to minimize the risks of losses due to weather volatility. This move is particularly appropriate as climate change raises the bar in the occurrence and intensity of natural calamities and poses a billow threat to financial institutions and the insurance industry.
Working of Speedwell Climate
Speedwell Climate focuses on climate risk transfer contracts as a form of hedging, where organizations can pass their weather risks to a parametric insurance firm. These contracts are written consequently for environmental or weather-specific clauses, including storms, floods, or heat wave causes.
When such circumstances arise, the affected organisations are paid compensation which assists them to better cope with the losses. It is useful for companies with renewable energy since the volatility of wind and solar energy can be quite costly. In essence, Speedwell Climate’s solutions promote the energy transition and help provide a reprieve from the vulnerability of extreme weather to renewable energy projects.
Insurance Segment Impact
Vaisala has a goal to offer instruments that would help organizations minimize risks of potential monetary losses caused by weather unpredictability. This is to bring value to many consumers across industries such as insurance, investment funds, and renewable energy. The leading customers such as the CME Group already use Speedwell Climate’s solutions, signaling further market applicability.
The head of Vaisala Xweather, Samuli Hänninen said, “The combined skills and dataset of Speedwell Climate and Vaisala Xweather bring new opportunities to help customers mitigate and adapt to climate change. With weather becoming increasingly unpredictable, organizations need new tools to manage their risk position. We are very excited to welcome the skilled Speedwell Climate people to our team – together, we can turn weather anxiety into weather confidence.”
Quotation Source: Yahoo Finance
Conclusion
The strategy of acquiring Speedwell Climate is a strategic step forward by Vaisala in its mission to assist organizations in managing volatile financial impacts stemming from the weather. With the help of Speedwell Climate climate risk transfer service, Vaisala is expected to provide comprehensive solutions to the emerging climate change problem. With this strategic move, not only does Vaisala expand its presence in the market, but it also underlines its dedication to the world’s low-carbon transformation process.
