PERILS, the independent Zurich-based company that provides industry-wide catastrophe insurance data, has announced the expansion of its market coverage to include exposure and event loss data for European floods.
The new service is in addition to PERILS’ windstorm coverage in Europe and covers Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Sweden, Switzerland, and the United Kingdom.
The expanded coverage means that data for industry-wide property sums insured exposed to flood in the listed countries are available in the PERILS database. PERILS’ industry loss reporting service for Europe will also now include loss reporting for both wind and flood events that generate industry losses of €500 million (US$503.6 million) or higher.
In line with the PERILS methodology, the flood market exposures and event losses are based on data collected directly from participating insurers at CRESTA zone and property line of business level. The resulting industry exposure database (IED) and event losses can be used for a range of applications, including risk assessment and structuring of triggers for industry loss-based risk transfer products, as well as catastrophe risk model validation.
PERILS has also announced that it has raised the loss capturing thresholds for extratropical windstorm and flood in Europe to €500 million from €200 million (US$201.4 million) for pan-European industry losses and to €300 million (US$302.2 million) for industry losses in an individual country. For natural catastrophe events in Australia, New Zealand, Canada and Japan, the loss capturing thresholds remain unchanged at A$500 million, NZ$300 million, C$300 million and 100 billion Japanese yen, respectively. The adjustment in the thresholds is driven by organic market growth and claims inflation over the last 13 years since PERILS was established.
“The inclusion of European flood marks the achievement of another of our targets for 2022, following the addition of wind and flood for Japan in June,” said Luzi Hitz, CEO of PERILS.
“Access to data on current and past exposures and losses is key to understanding natural catastrophe risk, yet in the past, reliable, consistent loss information has been largely unavailable. Since 2009, through the application of our systematic, ground-up data approach and with the continuous backing of the insurance market, PERILS has worked to address this critical data shortfall, and we are incredibly proud of the advances we have made during this period,” Hitz added.
“Our decision to adjust the capture threshold reflects the significant growth of insurance exposures in Europe over the last 13 years. By setting the threshold at €500 million for pan-European events and €300 million for individual countries, we believe this achieves the correct balance between ensuring we continue to provide relevant event loss data while also ensuring the reporting requirements for our data providing insurance companies are not overly burdensome,” commented Dalida Bachmann, head of Client Relationship at PERILS.
Source: PERILS
Photograph: View of the flooded city of Tartas, Landes, southwest of France. Photo credit: Mehdi Fedouah/AFP/Getty Images
Topics Catastrophe Flood Europe
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