PERILS, the Swiss-based insurance data provider, reports that “in contrast to an unusually quiet European windstorm season in 2010/11, the 2011/12 season was very active.” PERILS said it had “investigated no less than six events with the potential to exceed our event capture threshold of a €200 million [app $255 million at current exchange rates] market loss.
The report covers the last two months of 2011, which saw a lot of windstorm activity, as well as the first three months of 2012. During that period two events exceeded this threshold in the markets PERILS covers – Joachim (15 – 17 December 2011) with losses estimated at $377 million, and Andrea (4 – 5 January 2012) with losses estimated at $407 million.
PERILS has reported the first two scheduled event loss reports for both of these events. The third event loss reports will be made available during the summer months of this year.
The report notes that an “interesting feature of the past winter was the high correlation of windstorm activity with the North Atlantic Oscillation (NAO) Index,” details of which are included in the report.
PERILS also explained that its “market data continues to be used for portfolio benchmarking where an existing insurance portfolio is measured against the market. Equally, the data are increasingly being used in Cat model validations helping to make models more realistic and robust over time. In addition, their use in the risk assessment and trigger design of industry-loss based risk transfer products continues to grow. The use of PERILS data is driven by the need for the insurance industry to better understand natural catastrophe risk.”