Lloyd’s of London accredited insurance and reinsurance broker Alston Gayler (AG), a leading player in the global industry loss warranty (ILW) market, has secured a license from Property Claim Services (PCS) to use its PCS Turkey service for ILW triggers.
The PCS Turkey service was launched in May 2015 in collaboration with the Istanbul Underwriting Center (IUC). The service provides industry loss estimates for events in excess of US$10 million arising from all natural and man-made perils in Turkey, providing a useful data service for market participants as well as an independently reported data source for ILW or catastrophe bond industry loss triggers.
PCS said that Alston Gayler (AG) is the latest reinsurance intermediary to secure a license to facilitate PCS Turkey–triggered industry loss warranties (ILWs). But with a just a few having signed up to date the license can present an opportunity to brokers that do sign up. AG was among the first reinsurance brokers to buy licenses to facilitate U.S. and Canadian ILW transactions for its clients.
“By expanding PCS’s relationship with Turkey, AG has taken an important step forward in supporting its clients in the ILW market,” commented Tom Johansmeyer, assistant vice president, Reinsurance Services, Verisk Insurance Solutions. “Further, this could help bring more original risk into a global reinsurance market that needs increased opportunity to deploy capital.”
“We’re proud to be among the first companies to adopt PCS Turkey,” added Robert Alexander, managing director of AG. “As one of the most active ILW brokers in the world, we believe in making execution as efficient as possible for our clients—and having a license to help them is a big part of that. By being among the first to adopt PCS Turkey, we remain at the forefront of risk- transfer thinking—and action.”
Industry loss warranties (ILW’s) are a mainstay of the ILS investment market, an asset that many ILS funds include in their portfolios.
Availability of robust, defensible and independent trigger data and reporting is key and the expansion of PCS into Turkey promises to help Turkish risk become a more important diversifier for the ILS investment market.