PCS signs up broker Beach for U.S., Canada & Turkey ILW’s

by Artemis on July 14, 2016

Reinsurance broker Beach & Associates has signed up for a license to facilitate industry-loss warranty (ILW) transactions in the United States, Canada and Turkey using Property Claim Services (PCS) data as a trigger.

PCS, a Verisk Analytics business unit, has signed up a number of reinsurance brokers or intermediaries in recent months, as it enforces a policy requiring at least one participant in an ILW or PCS industry loss triggered transaction to have a valid PCS ILW license.

With its newly secured license, Beach, a long-time PCS customer, can facilitate ILW’s covering the United States, Canada and Turkey, all countries where PCS reports on catastrophe insurance industry loss figures.

PCS believes that having a PCS ILW license provides a clear competitive advantage in the marketplace for any broker or intermediary who signs up, as it allows them to be the licensed party in the ILW transaction, meaning it can better service clients and counterparties that do not have one.

As a result of the licensing, Beach can ensure its reinsurance and retrocessional broking clients have ILW cover including properly licensed catastrophe loss estimate data for the United States, Canada, and Turkey. The importance of proper licensing is stressed, as it there could be significant implications if an unlicensed ILW transaction was triggered and went to dispute as a result.

“I’m looking forward to working more closely with the Beach team, especially in a market where savvy thinking can lead to unique ILW opportunities,” commented Tom Johansmeyer, assistant vice president, PCS Strategy and Development.

“Further, unlicensed use of the PCS Catastrophe Loss Index involves certain key risks, particularly if a triggering event occurs. Beach has taken an important step forward in protecting its clients. We’re proud to have a new opportunity to serve a loyal client that’s been with us for years,” he explained.

“PCS is a fundamental part of our ILW business,” added Clark Hontz, partner at reinsurance intermediary Beach. “As one of the handful of reinsurance brokers with a license, we look forward to helping our clients more effectively. Particularly following the accumulation of hail losses in Texas and the Fort McMurray wildfire in Canada, we see how different types of events can have retrocessional protection implications. In this evolving market, being properly licensed is more important than ever.”

With ILW’s a valuable piece of the insurer, reinsurer and ILS fund manager risk transfer toolbox, licensing for the data used within triggers is key to ensure investors and ceding companies are protected against any unnecessary risk of dispute.

Subscribe for free and receive weekly Artemis email updates

Sign up for our regular free email newsletter and ensure you never miss any of the news from Artemis.

← Older Article

Newer Article →