In a move some experts are saying has the potential to boost insurance-linked derivatives, a group of insurers and brokers have created PERILS A.G., a Zurich, Switzerland-based company that will provide the European marketplace with aggregated catastrophe insurance data in a subscription service to the European market.
The new company will target insurers, reinsurers, brokers, risk modelers and banks with this aggregated data, along with newly created loss estimates per risk type after natural catastrophes.
PERILS expects the industry exposure data and loss information will have significant value to subscribers by improving the understanding of the potential frequency and severity of natural catastrophes at various magnitudes, said
Greater transparency surrounding industry losses is likely to further facilitate the establishment of accurate and robust loss triggers for Catastrophe Bond structures, Industry Loss Warranties (ILWs) and other capital markets products. PERILS's loss estimates will be a welcome addition to the Insurance-Linked Securities (ILS) sector, and will greatly improve insurers' and reinsurers' abilities to seek further capacity for peak European natural catastrophe risk, the company said.
PERILS is an industry-wide initiative with a governance structure established to ensure significant industry independence. Founded by Allianz S.E.,
