PERILS AG, the independent Zurich-based company providing industry-wide European catastrophe insurance data, announced that total placements of insurance risk transactions based on the PERILS industry loss index to date in 2010 have exceeded $1 billion.
PERILS said that from January 1 to December 15, 2010, a total of $1.05 billion of “PERILS-based capacity was placed in the capital and reinsurance markets. $620 million of this capacity was in the form of Insurance-Linked Securities (ILS), equating to approximately 60 percent of the overall figure, while $430 million was in the form of private or derivative transactions such as Industry Loss Warranties (ILW).”
PERILS CEO Luzi Hitz commented: “2010 has been an extremely successful year for PERILS as is clearly demonstrated by the figure of $1.05 billion, which we have announced today. The PERILS industry loss index has been an integral part of a number of the largest European windstorm insurance risk transactions placed this year and our expectation for 2011 is that the index will play an increasingly prominent role in this sector.”
Edi Held, Head of Sales & Marketing at PERILS, added: “The transactions which base their index on PERILS loss estimates make use of the full range of data resolution that PERILS provides. Trigger types used include: un-weighted PERILS industry loss estimates for entire storm events, triggers based on weighted industry losses per country, and triggers based on weighted industry losses per CRESTA zone and property lines of business.”
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