PERILS AG, the Zurich headquartered provider of catastrophe loss data and indices, has added European flood risk to its service offering, as the company will now provide exposure data and event industry loss data on the peril.
Of course, PERILS launched with European windstorm industry loss data well over a decade ago and has since expanded to other regions and territories around the world.
Now, with European flood loss events profile raised significantly after last years multi-billion flood catastrophe loss in Germany, PERILS has expanded to cover this peril as well.
PERILS will now feature industry-wide property sums insured exposed to flood in its database for Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Sweden, Switzerland, and the United Kingdom.
In addition, PERILS’ industry loss reporting service for Europe will include loss reporting for both wind and flood events, where industry losses are EUR 500m or higher.
The industry loss data reporting can be utilised in risk transfer and reinsurance arrangements, such as industry-loss warranties (ILW’s), or industry-loss trigger catastrophe bonds.
PERILS also said today that it is raising the loss thresholds for extratropical windstorm and flood in Europe to EUR 500m from EUR 200m, for pan-European industry losses, and to EUR 300m for industry losses in a specific country.
Event industry loss reporting thresholds remain unchanged in other territories around the world.
Luzi Hitz, CEO of PERILS, commented on the service expansion, “The inclusion of European flood marks the achievement of another of our targets for 2022, following the addition of wind and flood for Japan in June. We thank the European insurance industry for their strong support which has made this possible. Access to data on current and past exposures and losses is key to understanding natural catastrophe risk, yet in the past, reliable, consistent loss information has been largely unavailable.
“Since 2009, through the application of our systematic, ground-up data approach and with the continuous backing of the insurance market, PERILS has worked to address this critical data shortfall, and we are incredibly proud of the advances we have made during this period.”
Dalida Bachmann, Head of Client Relationship at PERILS, commented on the loss reporting threshold, “Our decision to adjust the capture threshold reflects the significant growth of insurance exposures in Europe over the last 13 years. By setting the threshold at EUR 500m for pan-European events and EUR 300m for individual countries, we believe this achieves the correct balance between ensuring we continue to provide relevant event loss data while also ensuring the reporting requirements for our data providing insurance companies are not overly burdensome.”