Property Claim Services (PCS), a Verisk business, is expanding its specialty loss lines reporting platform to include worldwide insured aviation loss events.
PCS Global Aviation is to focus on events with estimated industrywide insured losses of at least $50 million and, in addition to airline industry losses, will include estimates for general aviation events where readily available.
Re/insurers from Bermuda, London and other key jurisdictions are noted as having approached PCS to support the development of what is an important and complex collection of aviation sector data.
This data contains industrywide insured losses with breakdowns by class of business, as well as flight numbers, tail numbers, departure and arrival airports, and age of the aircraft.
PCS first entered the specialty lines space in 2017 with the launch of its Global Marine and Energy unit.
Loss aggregation was subsequently expanded to include PCS Global Cyber, PCS Global Terror, and PCS Global Large Loss.
The firm considers this latest announcement an important development in the progression of its aim to support a wide range of re/insurance risk and capital management activities in the global specialty lines space, while accommodating alternative risk transfer.
PCS head Tom Johansmeyer emphasised PCS Global Aviation’s potential in enabling data to enhance the group’s approach to specialty lines in general.
“Independent industrywide insured loss estimates are crucial to the basic operations of the re/insurance industry,” Johansmeyer said. “And as we can increase granularity, we’re able to help our clients solve more problems.
“Throughout the development process, we saw that basic understanding of worldwide aviation insured losses was patchy and inconsistent, which inevitably causes pricing inefficiency and imprecise risk transfer.”
“The PCS team sees the launch of PCS Global Aviation not just as a new capability but as validation that our focus and priorities are in the right place.
“It’s always exciting to see the market come to PCS first when they need a solution – and it’s even more exciting to see that effort culminate in a new launch. I’d like to thank our collaboration partners for once again making such a tangible expression of their faith in PCS.”
Alex Mican, senior PCS product development director, noted, “The value of a historical database, especially in the aviation sector is irrefutable. Risk transfer today requires reference events from the past, and our clients committed to helping us deliver a robust data set with more than four decades of losses.
“Through continual feedback and market collaboration in developing PCS Global Aviation, we reduced the uncertainty that usually comes with new product adoption and put credible estimates in front of our clients.”
Ted Gregory, director of global PCS operations, concluded, “Our clients have been asking for a solution for the global aviation industry for quite some time now, and PCS Global Aviation represents several years of effort by our team and the market.
“Continued high levels of client engagement and collaboration have resulted in a collection of more than 200 past events and the capabilities to add more in accordance with our methodology. PCS is bringing the tool to market, but the credit for developing it goes to the clients who stood shoulder to shoulder with us every step of the way.”
