RAINMUMBAI: India’s First Weather Derivative Turns Monsoon Risk Into a Tradable Financial Instrument
The contract is based on Mumbai rainfall data sourced from the India Meteorological Department. It tracks how actual rainfall deviates from the city’s Long Period Average during the monsoon season. The system uses a Cumulative Deviation Rainfall model, developed with the involvement of IIT Bombay, to measure the difference between real rainfall and historical averages.