During hurricane season, trying to anticipate where these destructive storms will make landfall can be a harrowing, high stakes guessing game right up to the last moment.
A Hurlo (Hurricane Risk Landfall Option) is a new financial product created by Weather Risk Solutions (WRS) to help people protect themselves from losses caused by hurricanes that are not otherwise covered by insurance.
A new breed of option, the Hurlo is simple and developed for average homeowners. Participants buy options that the hurricane will strike a specific area of the East Coast or the Gulf Coast. The option premiums are pooled and when a hurricane strikes, the pool of money is divided among those who correctly picked the hurricane’s landfall location. The market is designed to be open and transparent.
For homeowners and small business owners in that region who bought Hurlos as a hedge, the payout can potentially be enough to offset the often wide discrepancy between what insurance covers and the actual out-of-pocket costs from the storm.
For the first time, WRS has opened its trading platform to the general public. Anyone can test out the concept in a simulated exercise based on real hurricanes during this hurricane season.
The Hurlo was created by Florida resident Kenneth Horowitz after suffering several destructive hurricanes. Horowitz, who co-founded Cellular One, said that “even with the best homeowner’s insurance policy, local residents are faced with enormous out-of-pocket expenses, including high deductibles.”
Insurance also can take a long time to pay, while those hit hardest need money urgently, Horowitz said. “The Hurlo was designed as a supplement to traditional windstorm insurance.”
Hurlos will not just be available to those who want to hedge their risk. They will also be available to financial speculators who provide liquidity and help produce fair and efficient market-driven prices.
To date, the Hurlo was only available to the very wealthy and hedge funds. But WRS is committed to working with the U.S. Commodity Futures Trading Commission to make the Hurlo available to everyone, including average homeowners and small business owners.
Hurlos.com is open to the public this hurricane season as a simulation to allow participants to learn more and to demonstrate the usefulness of the Hurlo to the public. Anyone can sign up free and buy Hurlos all season with $5,000 in play money. To encourage public participation, WRS will donate $5 per participant to the American Red Cross for each of the first 3,000 people to sign up to try out the trading platform.
More information can be found at www.HuRLOs.com.
Please click here for important additional HuRLOs information: http://www.weatherrisksolutions.com/media.php
Contact: Taylor Warwick Public Relations
Ned Warwick: 215.760.3275
Matthew Taylor: 718.689.0231
Test a New Website That Helps Manage Hurricane Risk
Contact Name: Matthew Taylor
Telephone Number: (718)689-0231