Record heavy rain that hit the entire Japan has killed more than 200 people. About 10,000 people have lost their homes and the affected regions are suffering from a heat wave that followed the downpour. This is all the more shocking as Japan is known to be well prepared for natural disasters like this.
Most countries rely on weather forecast to prevent against natural disasters and do their best to minimize the damage caused by the weather. This is the best method human beings deal with natural disasters. But there are circumstances that are beyond our control. The case in point is the recent downpour in Japan where human beings succumbed to the power of Mother Nature. “Weather insurance” is a way to proactively respond to such a natural disaster.
Weather insurance is a financial product that compensates for the damages caused by the weather. This is considered the last resort in prevention of natural disasters. Weather insurance is basically the same as other typical insurances in that it covers tangible and intangible damages that may occur.
In advanced countries, diverse financial products are developed to compensate for the damages caused by the weather on top of the efforts to actively use the weather forecast to minimize the damage. This is to make the damage caused by the weather no more a variable but a constant. If we get more interested in weather insurance, we will be able to prepare for any possible disasters.