Weather derivatives have existed much longer than prediction markets. search for “catastrophe bonds” (normally called “cat bonds” in the markets) if you want to find out more. There is also insurance and reinsurance.

Insurance is what normal people use to hedge weather risk. The insurers use an combination on reinsurance and cat bonds issuance and the reinsurers use cat bonds and weather derivatives.

I seriously doubt there is meaningful weather hedging volume on prediction markets by comparison.