European windstorm exposures static at €54 trillion: PERILS

by Artemis on April 3, 2017

European windstorm exposures, as measured by insured property values included in the PERILS AG Industry Exposure Database have remained relatively static in 2016, totaling €54 trillion in the latest release of the industry sums insured data set.

Zurich-based PERILS AG, the provider of industry-wide European catastrophe exposure, industry loss data and indices which are used in reinsurance and industry-loss triggered ILS transactions, has released its updated Industry Exposure Database (IED) today.

More than 200’000 individual data entries are included in the IED, defining property sums insured and the actual number of risks exposed to natural perils in Australia, Europe (Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Sweden, Switzerland and the United Kingdom) and Turkey.

The exposure data has been updated as of 1st January 2017, with information on deductibles and limits also updated.

PERILS updates its IED using a bottom-up data collection process, based on exposure information newly collected from insurance companies representing over 65% of the property market in the regions PERILS operates in.

European windstorm is the biggest exposure in the dataset and the largest exposure for insurance and reinsurance companies in PERILS core region of coverage. Understanding the market sums insured data helps companies to analyse their exposures, buy reinsurance and more effectively operate their businesses.

Compared to 1st January 2016 European windstorm sums insured remain relatively static, down by just -0.4% (+2.3% at constant FX rates). In Australia, Italy and Turkey, year on year variations in sums insured range from +2% to +24%. Changes to sums insured figures are mainly driven by differences in collected sums insured data as well as movements in market benchmarks.

Luzi Hitz, CEO of PERILS, commented on the release; “I am very pleased that the data collection over the last few months has again gone smoothly, which has enabled us to produce the update of the PERILS Industry Exposure Database on time. I would like to thank all data-providing insurance companies for their support. Without their collaboration, we would not be able to produce consistent, high-quality market data which serves to improve the understanding and tradability of natural catastrophe risk.”

Eduard Held, Head of Products at PERILS, added; “In addition to exposure information, the PERILS database contains loss data from a growing number of natural catastrophe events. By combining exposure data with loss and hazard data, we can support a broad spectrum of applications, ranging from market share analysis to the validation of natural catastrophe models. The exposure and loss data is also used for the structuring and risk assessment of industry loss based risk transfer products such as Cat bonds and industry loss warranty transactions.”

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