Property Claim Services (PCS), a Verisk Analytics business, has expanded its industry loss index coverage to the Latin America region four months ahead of schedule.
The firm explained that the 2019 riots in Chile led to significant insurance and reinsurance activity in the LatAm region, leading to a boost in demand for an independent industry loss index.
In response, PCS will now provide independent loss estimates on events with industry losses of at least $500 million across all natural and man-made perils.
Following the launch of PCS Mexico in 2019, PCS now provides full industry loss index coverage from Canada to Argentina. And last year, the firm also rolled out its services first to Japan, and then to Australia, New Zealand and Southeast Asia.
“Our clients came to us and said they wanted a PCS solution for Latin America, and they committed to supporting us in developing the loss-reporting platform and driving adoption,” said Tom Johansmeyer, Head of PCS.
“Because of the ongoing effort we invest in our relationships and the global reinsurance market as a whole, we’ve become the first stop for companies that need to understand risk and losses in regions and classes of business around the world,” he added.
Ted Gregory, Director of Global PCS Operations, also commented: “Client demand for loss information from these recent events in the region contributed heavily to our early launch of PCS LatAm.”
“We had planned to launch the platform later this year, but through close and continued discussions of the market, we understood just how acute the need for independent loss estimates had become,” Gregory explained.
“With that in mind, we shifted our focus, as a team, to PCS LatAm to be able to meet an urgent need for our clients. We’re excited to be continuing our mission to expand our independent and globally trusted services.”
PCS LatAm goes live with five historical events of at least $500 million, as well as the 2019 Chilean riots, which PCS will continue to report as a developing industry loss.
Additionally, PCS may review historical losses below the minimum loss threshold and add them to the database, as it has previously done with PCS Global Marine and Energy and PCS Global Large Loss.
“For every new loss-reporting platform we launch, the historical loss database is designed to address three market needs,” said Johansmeyer.
“We investigate past losses to demonstrate our ability to access sufficient data from across the market, which clearly differentiates us from other loss-reporting agency expansion efforts around the world. Further, historical losses support better historical analysis.”
“And finally, the historical database provides a foundation for introducing past losses that are subject to further development,” Johansmeyer concluded.
“The 2019 riots in Chile are still early in the reporting cycle, and the industry still has a lot to learn about the insured losses associated with the event. In particular, facultative losses could take a while to evolve; and based on our current estimates, a small number of facultative losses are responsible for at least one-third of the total industry loss.”