Property Claim Services (PCS), a Verisk Analytics business, has announced the extension of its catastrophe loss aggregation methodology used in Japan to cover Australia, New Zealand, and Southeast Asia.
PCS notes that the extension is driven by strong global reinsurance market demand, and following rapid adoption of PCS Japan, launched earlier this year, the firm will report insured losses from catastrophe events in Australia, New Zealand, and Southeast Asia (Brunei, Burma, Myanmar, Cambodia, Timor-Leste, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam), effective January 1st, 2020.
Future events and also those in the historical database will need to meet an industry insured loss threshold of USD 3 billion.
PCS notes that a lack of independent, robust, and reliable industry loss estimates has driven the continued use of PCS’s services, for solutions in both the U.S. and abroad.
The latest expansion into new territories is expected to include four historical loss events, several of which are being kept open to address further loss development, which includes the 2011 Christchurch quake. Other loss events in the historical database include the 2011 Thai floods and 2004 Banda Aceh event.
Tom Johansmeyer, Head of PCS, commented on the launch: “Our historical loss database is designed to address three market needs. First, it demonstrates our ability to put together loss estimates, which we believe differentiates us from other expansion efforts around the world. Second, it’s important to show what you plan to do going forward. Additionally, the database provides for better historical analysis. In 2011, for example, significant catastrophe loss activity occurred in Thailand, New Zealand, and Japan. Now, it’s possible to develop a more reliable global view of the loss year.
“The historical database provides a foundation for introducing past losses that are still subject to development. In particular, the deterioration associated with the New Zealand earthquake losses of 2011 demonstrates the importance of keeping an event open for as long as necessary.”
According to PCS, the longest resurvey periods on record for the firm are over 20 months, with even longer commitments for certain events in the specialty lines loss reporting platforms.
Ted Gregory, Director of Operations, PCS, said: “Given our long track record in the United States, we were cautious when launching PCS Japan. After all, it brought a new approach to catastrophe loss estimation that’s a bit different from what we have in Canada, Turkey, and Mexico.
“Based on the early signs of success in porting our specialty lines methodology to catastrophe-style global terror events, we were confident in starting with Japan. Now, less than a year after our first estimates went live for Jebi and Trami, we see the importance of accelerating our entry into new markets.
“Our clients need expanded support, and we’re honored that they come to us for timely, useful, and reliable solutions. Our goal is for our clients to choose PCS first because they see our work and our commitment. The PCS team continues to earn this privilege by demonstrating our dedication every day.”
