PERILS, the independent Zurich-based organization that provides industry catastrophe insurance data, has announced that it has entered a strategic alliance with Toronto-based Catastrophe Indices & Quantification Inc. (CatIQ) to provide industry loss data for Canada via the PERILS Industry Loss Index Service.
With immediate effect, PERILS will make available industry loss data for any natural catastrophe event in Canada causing a market loss of C$300 million (US$229.4 million) or above. This includes all natural perils which Canada is exposed to, such as earthquakes, floods, various types of storms, wildfires, and volcanic eruptions.
The loss data will be made available by Canadian province and by the following lines of business: private property, commercial property and motor hull (auto).
Loss reporting for qualifying Canadian events, i.e., event losses of C$300 million or above, will follow the standard PERILS reporting schedule, with the first loss report being made available six weeks after the event, followed by a minimum of three updates three, six, and 12 months after the event.
The industry loss data provided by PERILS are compiled by Toronto-based CatIQ. The firm collects event loss data on catastrophic events from the overwhelming majority of affected insurers in the Canadian insurance market, said PERILS in a statement.
CatIQ is guided by a 10-member advisory board which includes senior representatives from three major Canadian primary writers and one global reinsurer on a rotation basis, as well as permanent representatives from Aon Benfield, Guy Carpenter, JLT Re, the Insurance Bureau of Canada (IBC), the Institute for Catastrophic Loss Reduction (ICLR) and Canada’s federal agency, Environment and Climate Change Canada.
The addition of Canada brings to 16 the number of territories currently covered by the PERILS Industry Loss Index Service, which also includes: Australia, Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Sweden, Switzerland, Turkey, and the United Kingdom.
The PERILS Industry Loss Index Service is widely used for industry loss-based risk transfer products such as industry loss warranties and insurance linked securities. To date, more than US$14 billion of PERILS data-based risk limits has been placed in more than 200 individual transactions.
Commenting on the announcement, Luzi Hitz, CEO of PERILS, said: “Providing CatIQ data through the PERILS Industry Loss Index Service fits perfectly with our mission to increase data availability for the insurance industry. It also reinforces our ability to provide a one-stop-shop for state-of-the-art industry loss triggers, thereby helping to increase the efficiency of this specialized risk transfer market.”
Joel Baker, founder and CEO of CatIQ, said: “We are thrilled to be working with the esteemed PERILS team to bring CatIQ’s analytics and loss indices to the wider risk transfer market. We consider this a win-win-win for ourselves, PERILS and the markets we serve.”
Source: PERILS
Topics Catastrophe Profit Loss Canada
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