The Isle of Man has an obvious problem with attracting tourists: the weather is often unpleasant. Of course, the weather is sometimes glorious – but a potential tourist may be deterred by the risk of bad weather.

The solution, then, can be to offer bad weather travel insurance. The facts and statistical probabilities can be determined fairly independently, with the Isle of Man Meteorological Office at Ronaldsway publishing long-term data and being an independent oracle of the facts.

A tourist could then purchase (at least a couple of weeks ahead) bad weather insurance to cover the cost of their flights and accommodation with a relevant premium and payout. If certain weather metrics apply (Eain? Wind? Hours of sunlight? Etc) then the insurance would payout the agreed levels. In essence, the insurerĀ  is betting on the weather.

This is not a fundamentally complicated product: it probably exists elsewhere in various circumstances.

Of course, the premiums for such weather insurance may be higher than we like – but there’s a recurring issue in these Isles that people are excessively optimistic about weather in June, and excessively pessimistic about weather in September. Such products might allow the Isle of Man travel season to be extended by encouraging people to travel into September and October, rather than just the peak of summer.

By offering such insurance, a provider may not only benefit from the financial gamble that applies, but may also create secondary benefits to consumers and other businesses by encouraging people to take trips that they would not otherwise have taken. That will benefit the traveller: they get lower-risk opportunities to create great memories in the Isle of Man, and will also benefit businesses which can serve such travellers.

Michael Josem is a long-term consumer advocate, most prominently as a global leader in combating fraud in the online gambling industry. He was in part the inspiration for the 20th Century Fox Movie, Runner Runner, starring Ben Affleck and Justin Timberlake.

Josem has over a decade of experience as a senior business leader working across various high-tech and online industries, and takes action to build a better community. His primary volunteer roles include service for the Commonwealth War Graves Commission, and Graih, the homelessness charity.