Jola
toujours là*
*never let you down
PARAMETRIC RISK TRANSFER SOLUTIONS
automatic trigger based on reference data (weather and/or market)
PARAMETRIC RISK TRANSFER SOLUTION / PRODUCTION HEDGE
OBJECTIVES
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Protect revenue against a decrease of the hydro production
HOW DOES IT WORK ?
Inception
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[Jola & Client] Definition of cover parameters : risk period, reference data (weather and/or market), index calculation methodology, strike, exit (cap/floor), tick, maximum payment amount
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[Jola & Client] Selection of the counterparty (risk taker)
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[Risk taker & Client] Signature of the contract and payment of the premium at least 15 days before the start of the coverage period
At the end of the coverage period
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[Jola] Collection of weather data
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[Jola] Calculation of the payoff of the cover
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[Jola] Sending the calculation report to the Client and the Risk taker
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[Risk taker] Payment of the payoff to the Client
HOW MUCH DOES IT COST ?
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The insurance premium depends on the contracts parameters
-
Typically between 5% and 20% of the maximum payment amount
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Examples (Europe)
PARAMETRIC RISK TRANSFER SOLUTION / BAD CORRELATION
OBJECTIVES
-
Protect revenue against bad correlation between hydro energy production and electricity spot price
HOW DOES IT WORK ?
Inception
-
[Jola & Client] Definition of cover parameters : risk period, reference data (weather and/or market), index calculation methodology, strike, exit (cap/floor), tick, maximum payment amount
-
[Jola & Client] Selection of the counterparty (risk taker)
-
[Risk taker & Client] Signature of the contract and payment of the premium at least 15 days before the start of the coverage period
At the end of the coverage period
-
[Jola] Collection of weather data
-
[Jola] Calculation of the payoff of the cover
-
[Jola] Sending the calculation report to the Client and the Risk taker
-
[Risk taker] Payment of the payoff to the Client
HOW MUCH DOES IT COST ?
-
The insurance premium depends on the contracts parameters
-
Typically between 5% and 20% of the maximum payment amount
-
Examples (Europe)