Until it hurts their stock price many companies will beunwilling to buy products that can hedge against the risk that hotor cold climate conditions pose to their business, a weatherderivatives expert advised last night.

William W. Windle, senior vice president for weather and energyproducts with Swiss Re's Capital Management and Advisory unit inNew York, made his comments during a briefing on the market thatunderwrote more than $5 billion in climate risk last year, even assome firms shy from the product.

"Its not uncommon for companies, particularly in the energysector, to have an understanding of what their exposure is, butchoose not to manage that," said Mr. Windle. Many, he said, cancalculate the dollar loss due to a reduction in power demand withextreme precision.

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