Property Claim Services (PCS) is to provide greater transparency for U.S. catastrophe loss estimates via the delivery of state-level market share data capture rates for U.S. events with insured losses of at least $1 billion.
PCS, a Verisk Analytics business, says that its state-level market share data capture rates for qualifying catastrophe events in the U.S., provides increased transparency to benefit the entire risk, capital and reinsurance supply chain.
For each U.S. catastrophe event with insured losses of at least $1 billion, PCS will show market share capture rates by class of business, including auto, personal, and commercial.
Additionally, explains PCS, market share capture rates will be updated for each successive resurvey bulletin.
As a result, insurance, reinsurance and ILS market users will be able to understand the size of underlying data contributor base and, importantly, users will also be able to see how data contribution develops throughout the life cycle of a large U.S. cat event.
Co-Head of PCS, Tom Johansmeyer, commented, “As PCS grows and becomes further entrenched in the global risk-transfer market, we understand the importance of becoming more transparent. In fact, transparency is the only antidote to misinformation, flawed assumptions, and dated perceptions.
“Our publication of market share capture rates for large events demonstrates our commitment to the participants in the global risk and capital supply chain— and our sincere interest in doing everything we can to help them manage their risk and capital more effectively. We’re proud to set a new standard for transparency in loss reporting in the global insurance and reinsurance industry.
“Our overall growth strategy starts and ends with the needs of our clients. Improved transparency on how we access data has been the most frequent request we’ve received since even before my time at PCS, and I’m thrilled that our team has been able to deliver.”
PCS states that the process will commence for all qualifying cat events that are currently open for resurvey, with the market share capture rates being published at the same time as the next scheduled update for each individual event.
As an example, PCS notes that it plans to publish the next Hurricane Harvey bulletin around the 28th of March, which will show the percentages of the market reporting to PCS for the aforementioned lines of business.
At this time, PCS has resurveys open for eight U.S. cat events, which will all have market share capture rates disclosed in line with the release of their next bulletins.
Co-Head of PCS, Ted Gregory, added, “The needs of our subscribers and customers are constantly evolving. With PCS being the leader in loss aggregation in the U.S. for more than 70 years, it’s our duty to continue to evolve and develop products that are of use to our subscribers and customers as well. We’re pleased to be able to provide this to our community of customers around the world.”
This latest enhancement to PCS’ U.S. offering follows the recent announcement that the company is to deliver county-level resolutions for cat events in the U.S. with insured losses of at least $1 billion.
Combined, these two enhancements will allow insurance, reinsurance and ILS users to leverage more granular data and better inform their hedging strategies as a result.