Reinsurance broker JLT Re has secured a license to facilitate industry loss warranties (ILWs) covering the U.S., Canada, and Turkey, using Property Claims Services (PCS) data as a trigger.
PCS, a division of Verisk Analytics, has announced that international reinsurance broker JLT Re, the reinsurance arm of JLT Group, has become the latest reinsurance broker to sign up for its PCS ILW license. In recent months a number of intermediaries have signed up for a license, as it enforces a policy requiring at least one participant in an ILW or PCS-triggered industry loss transaction to have a valid PCS ILW license.
“We understand the importance of working with ILWs correctly, and we’re pleased with the flexibility that our newly expanded relationship with PCS will provide to JLT Re and our clients.
“PCS is the global leader in loss aggregation and the established standard for independence, consistency, and reliability. We welcome the opportunity to help drive more effective PCS ILW cover in the market,” said Gary Reynolds, Partner and ILW Practice Leader, JLT Re.
The license enables JLT Re to facilitate ILWs between parties that are currently without a license of their own, while remaining compliant with the aforementioned policy enforcement. A number of global reinsurance brokers are yet to adopt such a license, explains PCS, adding that this provides companies like JLT Re with an advantage in a competitive marketplace.
Tom Johansmeyer, Assistant Vice President (AVP), PCS Strategy and Development, said; “I’m excited to work more closely with JLT Re’s ILW team. The soft market has had clear implications for ILW use, but that doesn’t mean there aren’t opportunities.
“The disciplined and creative use of the PCS Catastrophe Loss Index can help savvy teams improve the service they provide their clients. Further, unlicensed use of the PCS Catastrophe Loss Index involves certain key risks, particularly if a triggering event occurs. JLT Re has taken an important step forward in protecting its clients.”
The securing of the license further strengthens the relationship between JLT Re and PCS and should support ILW sector growth, by increasing the ability for ILWs in the U.S., Canada, and Turkey.