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$2.4 billion of new PERILS-based limits placed in first 9 months of 2012


PERILS AG, the Zurich-based independent provider of industry-wide European catastrophe insurance data and loss indices, has published an update on its progress and how widely used its data has become. The service has a primary focus on European windstorm loss data and indices for construction of industry-loss based catastrophe bonds, ILW’s and private transactions, but has also recently branched out into flood loss data for the UK and satellite based flood extent mapping.

In the first nine months of 2012 PERILS AG industry loss data and indices had been used for the placement of $2.4 billion of new limits. That brought the total limits placed using PERILS to just under $5.5 billion since its launch and left $3.7 billion of PERILS-based ,limits at risk at the 30th September. So far this year, every single insurance-linked security transaction which provides cover for European windstorm risks has used PERILS as a trigger and loss/exposure data source.

Of the limits currently at risk that use PERILS, $1.738 billion relates to private transactions (so including ILW’s) while$1.959 billion relates to 144A catastrophe bonds and ILS.

Two recent catastrophe bond transactions may not be included in this data as the deals both completed in October. Atlas Reinsurance VII Limited and Queen Street VII Re Ltd. have increased the total PERILS limits placed this year.

The chart below shows the impressive growth in PERILS usage since their launch in 2010:

PERILS-based limits placed (ILS, ILW, collateralized R/I, Risk Swaps)

PERILS-based limits placed (ILS, ILW, collateralized R/I, Risk Swaps). As at 30 September 2012

Luzi Hitz, CEO of PERILS, commented; “Record natural catastrophe losses, significant focus on catastrophe models, a healthy alternative risk transfer market and new risk-based solvency regulations have all served to emphasize the relevance of PERILS data. Without real data, there can be no reliable risk models and as a consequence no reliable risk assessments. PERILS’ mission to increase data availability and transparency therefore is to the benefit of everyone involved in our industry.”

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