Method and system for predicting the financial impact of forecasted weather conditions

A system for predicting the financial impact of forecasted weather events, comprising:

• one or more databases that store:
• information indicative of past weather events in a plurality of locations, each of the past weather events including one or more past weather conditions;
• and
• information indicative of the observable financial impact of at least some of the past weather events;
• an analysis unit that:
• for each of the plurality of locations and each of the one or more weather conditions:
• determines a recurrence interval of each of the past weather conditions in the plurality of locations;
• determines correlations between the past weather conditions and the observable financial impact of the past weather events;
• calculates a predicted observable financial impact of each of the past weather conditions;
• calculates a predicted financial impact of each of the past weather conditions recurring by multiplying the predicted observable financial impact the past weather condition by the recurrence interval of the past weather condition;
• groups the past weather events into a plurality of groups based on the predicted financial impact of the past weather condition recurring;
• and
• determines a threshold for each of the plurality of groups;
• receives forecasted weather conditions;
• and
• determines the predicted financial impact of the forecasted weather conditions by comparing the forecasted weather conditions with the thresholds determined for each of the groups in the locations of the forecasted weather events.

A non-transitory computer-readable storage medium storing instructions that, when executed by a computer process, cause a computing device to:

• receive information indicative of past weather events in a plurality of locations, each of the past weather events including one or more past weather conditions;
• receive information indicative of the observable financial impact of at least some of the past weather events;
• for each of the plurality of locations and each of the one or more weather conditions:
• determine a recurrence interval of each of the past weather conditions in the plurality of locations;
• determine the correlation between the past weather condition and the observable financial impact of the past weather event;
• calculate a predicted observable financial impact of each of the past weather events;
• calculate a predicted financial impact of each of the past weather events recurring by multiplying the predicted observable financial impact the past weather event by the recurrence interval of the past weather condition;
• group the past weather events into a plurality of groups based on the predicted financial impact of the past weather condition recurring;
• and
• determine threshold for each of the plurality of groups;
• receive forecasted weather conditions;
• and
• determine the predicted financial impact of the forecasted weather conditions by comparing the forecasted weather conditions with the thresholds determined for each of the groups in the locations of the forecasted weather events.