PERILS aims to be the ‘one-stop agency’ for nat cat data
The systematic collection of high-quality natural catastrophe exposure and actual event loss data in some of the new markets PERILS has expanded into will prove invaluable for companies constructing risk models covering those territories.
This is according to PERILS CEO Luzi Hitz and Darryl Pidcock, head of Asia-Pacific at the company, who told Monte Carlo Today it wishes to become a one-stop reporting agency for such data. It now covers Europe, Australia, Canada and Turkey, but is looking to expand further.
“If you don’t have someone carrying out this type of data collection, you do not really have a benchmark to ask whether models are accurate or not,” said Hitz.
He believes it is crucial to collect reliable data after an event in order to do a proper risk assessment, although this takes time.
“Without the data, people start to talk about the projected model losses, even if the reality is quite different,” he continued. “Then they start to calibrate models on inaccurate model numbers. It’s a vicious circle.”
When PERILS was launched it covered only Europe, but it was quickly realised that there would be strong demand for its services in other major territories such as Australia, Pidcock added.
PERILS started covering Australia on September 12, 2016 and Turkey on November 25, 2015. Its next market will be New Zealand.
In February 2017, PERILS entered a strategic alliance with Catastrophe Indices & Quantification (CatIQ) to provide loss data for Canada via the PERILS industry loss index service.
Of the total $3.1 billion of PERILS-based limits at risk as of August 31, 2017, $3 billion cover Europe, $1.38 billion cover Australia and $0.23 billion cover Turkey. These figures were up 17 percent year on year.
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