A California firm announced today it has launched what might be described as weather derivatives for the little guy.

HedgeStreet, based In San Mateo, Calif., said it was selling hurricane contracts for as little as $9 that return $100 if the storm creates insured damage above certain levels that are certified by the Insurance Services Office, Inc. in Jersey City, N.J.

Russell Andersson, a co-founder of HedgeStreet, said the firm hopes to graduate to much bigger contract sizes, but in the meantime they would be "democratizing" the area of weather-risk investments with an entry level far lower than the catastrophe bonds in which reinsurers invest.

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