PERILS Updates Europe Industry Exposure Database for 2012

April 2, 2012

PERILS AG, the independent Zurich-based company providing industry-wide European catastrophe insurance data, has updated its Europe Industry Exposure Database with revised “market-wide property sums insured for European windstorm for Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway, Sweden, Switzerland and the United Kingdom.”

The bulletin noted that for the “first time the database also contains property sums insured exposed to UK flood.” The in-force data is compiled for the amounts insured as of January 1, 2012.

“As in the 2011 data set, granularity is on a CRESTA zone, property occupancy type (residential, commercial, industrial, agricultural) and coverage type (content, building, business interruption) level,” the bulletin explained. “Information about prevailing deductibles has also been updated.”

PERILS also indicated that, compared to 2011, “the total sums insured movement over all eleven windstorm markets combined is +3.4 percent (+2.5 percent at constant EUR exchange rates). Changes in country-wide sums insured vary between -7 percent and +12 percent.

This year-on-year development is mainly driven by movements in collected sums insured data and movements in market benchmarks.

“In addition to exposure information, the PERILS database also contains loss data for windstorm and future UK flood events where the overall industry loss exceeds €200 million [$267 million]. The losses are available at the same level of granularity as the exposure information. Intensity measures, such as gust speed information, are provided on a CRESTA zone level.

“The combination of up-to-date exposure data and market loss information based on identical sources and methodology enables users to validate European storm risk models and to perform exposure and loss market benchmarking. For insurance risk transactions based on industry losses (ILW and ILS), the database facilitates the defining of custom-made triggers resulting in reduced basis risk for protection buyers. It can also be used to carry out the risk assessment of such transactions, thereby ensuring consistency with the trigger definition.”

Eduard Held, Head of Products at PERILS, commented: “With the expansion of our database to include the peril of rain-induced flood for the UK, we will increase data availability and transparency for this key risk. Over time, our independent market data will lead to a better understanding of UK flood, a risk which has moved to the top of many insurers’ agendas, especially since the 2007 summer floods.”

Source: PERILS

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