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

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PERILS, the independent Zurich-based insurance catastropheaggregator said it has launched its Industry Loss Index Service forEuropean windstorm events.

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

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The underlying data, PERILS explained, is collected directlyfrom insurers underwriting property insurance in the affected areasand is processed using a standardized procedure to estimateindustry-wide insured losses.

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Index values, the company said, are generally made availableafter six weeks of the event, with updates after three, six andtwelve months.

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Luzi Hitz, PERILS chief executive officer, said, "In the shorttime period since the foundation of PERILS, we have receivedtremendous support from the industry. We take this as proof thatPERILS has met a true market need. Our index service addresses alongstanding issue in Europe by providing a reliable European eventloss index prepared by an independent authoritative source. We areconfident that this will ultimately lead to a more liquid Europeanwindstorm market and hence will be to the benefit of everystakeholder."

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

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According to the company, it offers a number of advantages overexisting sources of European windstorm event loss data, with aspecialized technology system and rigorous data evaluationprocedure to ensure complete independence and neutrality of themarket loss indices.

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

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