Reinsurance broker and advisory JLT Re has increased its ability to offer industry loss warranty (ILW) products to its clients, by expanding its relationship with PCS, a division of Verisk Analytics.
The expanded relationship means that JLT Re, which is already one of the leading ILW brokers, now has the ability to offer these contracts across the United States, Canada, and Turkey, with a license to facilitate PCS-triggered industry loss warranties (ILWs).
Gary Reynolds, partner and industry loss warranty practice leader at JLT Re, commented; “We understand the importance of working with ILWs correctly, and we’re pleased with the flexibility that our newly expanded relationship with PCS will provide to JLT Re and our clients.” He added, “PCS is the global leader in loss aggregation and the established standard for independence, consistency, and reliability. We welcome the opportunity to help drive more effective PCS ILW cover in the market.”
JLT Re’s PCS Catastrophe Loss Index license allows the broker to facilitate ILWs between parties that do not have licenses of their own while remaining compliant with the PCS policy that at least one participant in the transaction (including the intermediary) have a valid license.
Tom Johansmeyer, assistant vice president – PCS Strategy and Development, explained; “I’m excited to work more closely with JLT Re’s ILW team. The soft market has had clear implications for ILW use, but that doesn’t mean there aren’t opportunities. The disciplined and creative use of the PCS Catastrophe Loss Index can help savvy teams improve the service they provide their clients. Further, unlicensed use of the PCS Catastrophe Loss Index involves certain key risks, particularly if a triggering event occurs. JLT Re has taken an important step forward in protecting its clients.”
