ILW news

Property Claim Services (PCS), a Verisk Analytics business, has now launched its awaited latest industry loss data solution for global specialty insurance and reinsurance lines, a new loss aggregation solution and risk transfer index for terrorism risks.

Property Claim Services (PCS), a Verisk Analytics business, has announced plans to launch a new loss aggregation solution for terrorism risks in the opening months of 2018, its latest industry loss data solution for global specialty insurance and reinsurance lines.

Rates-on-line for industry loss warranties (ILW’s) have increased by as much as 30% following the third-quarter catastrophe losses suffered by the industry, perhaps giving a glimpse of where retrocessional reinsurance could move at the forthcoming January renewals.

Property Claim Services (PCS), a division of Verisk Analytics, is to publish aggregate flood loss data supplied by the National Flood Insurance Program (NFIP), starting with hurricane Harvey, in a push to provide a more comprehensive view of national catastrophe losses.

The fact that insurance-linked securities (ILS) such as catastrophe bonds and collateralized reinsurance arrangements generally do not feature reinstatement provisions, means interest in industry loss warrants (ILW’s) could remain higher through the end of this year.

According to market sources, both traders and ILS fund managers, following the impacts of hurricanes Harvey and Irma a number of industry-loss warranty (ILW) contracts are expected to payout, with the total at risk seen as in the billions.

The market for live cat (live catastrophe) trading and protection buying saw a little activity yesterday, as hurricane Irma continued its approach towards Florida, with at least one trade completed with an industry loss trigger of $80 billion reported to Artemis this morning, and a few other deals getting done.

Broker sources told Artemis that they are seeing increasing interest in so-called back-up reinsurance covers, or products that can provide added protection until the end of the year, all a reflection of the hurricane Irma threat following Harvey so closely, but still live cat trading activity remains light.

Risk trading based on industry loss triggers linked to hurricane Harvey’s eventual insurance and reinsurance industry toll continued last week, with so-called “dead cat” trades taking place and the focus of counterparties shifting to higher levels of loss.

Catastrophe bond fund managers are not anticipating any loss to their investment holdings due to hurricane Harvey, although the mark-to-market impact witnessed in recent days could cause a limited hit to net asset values as cat bond positions thought most at risk of a major Harvey hit recover.