NU Online News Service, Dec.3, 1:31 p.m. EST

PERILS, the independent Zurich-based insurance catastrophe aggregator said it has launched its Industry Loss Index Service for European windstorm events.

The company said its new service provides index values which can be used in industry-loss-based Insurance Linked Securities (ILS) and Industry Loss Warranty (ILW) transactions.

The underlying data, PERILS explained, is collected directly from insurers underwriting property insurance in the affected areas and is processed using a standardized procedure to estimate industry-wide insured losses.

Index values, the company said, are generally made available after six weeks of the event, with updates after three, six and twelve months.

Luzi Hitz, PERILS chief executive officer, said, "In the short time period since the foundation of PERILS, we have received tremendous support from the industry. We take this as proof that PERILS has met a true market need. Our index service addresses a longstanding issue in Europe by providing a reliable European event loss index prepared by an independent authoritative source. We are confident that this will ultimately lead to a more liquid European windstorm market and hence will be to the benefit of every stakeholder."

PERILS said it currently has more than 50 insurance companies providing exposure and event loss data in a standardized format and it expects the number of participating companies to grow steadily.

According to the company, it offers a number of advantages over existing sources of European windstorm event loss data, with a specialized technology system and rigorous data evaluation procedure to ensure complete independence and neutrality of the market loss indices.

Industry loss indices are reported on a fixed schedule with a reporting structure guaranteed on a contractual basis. In addition, it said trigger definitions can be customized by allocating different weights to territories and property occupancy types.

Special Reports /

PERILS Launches European Loss Index Service

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