Risk Management Solutions (RMS) and WeatherFlow, a provider of private weather data, have announced they have partnered to launch the WindX parametric index in time for what is expected to be a highly active 2007 Atlantic basin hurricane season.

The WindX system is based on location-specific wind speed values which trigger a wide range of financial structures including over-the-counter derivative contracts, catastrophe bonds, and industry loss warranties.

WindX values will be driven by wind measurements from WeatherFlow's network of hurricane-hardened weather stations. WeatherFlow is expanding its coastal weather observation system by adding weather stations specifically designed to survive and accurately record hurricane winds.

WeatherPredict Consulting, a wholly-owned subsidiary of RenaissanceRe has been involved as an advisor for the WindX team, providing its expertise on customer and market needs. According to Bill Riker, president of RenaissanceRe, "The WindX parametric index will for the first time allow insureds, insurers, and reinsurers to separate hurricane hazard risk from the more uncertain property vulnerability risk. We believe hurricane and other pure hazard risk is more understandable and thus more attractive to emerging capital markets players accepting catastrophic risk."

"The WindX solution will address a longstanding problem in the catastrophe-linked securities market - how to design an index that provides investors with simplicity and transparency, yet provides insurers or reinsurers the ability to tailor the index to their risk profiles," said Peter Nakada, managing director of RMS Consulting.