Early launch for independent industry loss calculator
European insurance loss index, PERILS, has launched its service for European windstorm events ahead of its planned date of January 2010, Reuters reports.
PERILS provides index values that can be used in industry-loss based insurance-linked securities (ILS) and Industry Loss Warranty (ILW) transactions in Europe.
Two clients want to use the index from January 2010.
More liquid risk market
Dr Luzi Hitz, CEO of PERILS, said the index should help stimulate the development of new products and create more liquid insurance risk markets in Europe.
“If you look at the current situation for European windstorm, the alternative sources for industry loss estimates have the disadvantage of not being independent. PERILS is not an intermediary or a risk-taker, we have no conflict of interest in making our loss estimations.
Hitz said PERILS had received support from more than 50 companies across Europe, including the UK, and only 5% of companies approached refused to share loss data.
PERILS was set up in February this year by insurers Allianz, AXA, Groupama and Zurich; reinsurers Munich Re, PartnerRe and Swiss Re; and reinsurance broker Guy Carpenter.
