CRESTA, the re/insurance industry organisation that provides a standard global system of risk accumulation zones, has released an updated version of its zoning system for 2019.
In its 2019 release, CRESTA has updated all 4,901 low-resolution and 242,172 high-resolution zones for the 137 countries covered by the organisation, following consultation with the industry.
Last updated in 2013, the CRESTA zones are designed as a uniform method to electronically transfer aggregated exposure data for accumulation, risk control and modelling among insurers and reinsurers.
The new release covers the same zones as the previous update but reflects changes to administrative units worldwide, CRESTA explained.
It also introduces low-resolution zones for Australia, Canada, and New Zealand, which were not previously available under the zoning scheme.
Set up by the industry in 1977 and previously managed by Swiss Re and Munich Re, more recently catastrophe loss data aggregator PERILS AG took over responsibility for the CRESTA Secretariat.
“We are very proud to announce this major step in the ‘renaissance’ of CRESTA,” Eduard Held, Head of Products at PERILS.
“During the last 12 months, we have had numerous discussions with industry practitioners which have highlighted the importance of the CRESTA standard both as a means of facilitating data handling and of complying with data privacy laws,” he explained.
“As a globally accepted standard for the exchange of insurance data, CRESTA plays a critical function in increasing the efficiency of the risk transfer industry. Moving forward, CRESTA will continue to enhance the value of the standard for the benefit of the entire market.”
CRESTA zones consist of administrative and/or postal code boundaries. Typically, low-resolution zones are used as the industry standard for cumulative risk analyses and reporting, while high-resolution zones are used for risk modelling and scenario analyses.
CRESTA added that it will continue to develop its standard through engagement with the industry via is recently establish Advisory Board, which includes representatives from AIR, Aon, Corelogic, Guy Carpenter, Impact Forecasting, Munich Re, Oasis, PERILS, RMS, Swiss Re and Willis Re.