PERILS has reported that in the first six months of 2010, the total placements of insurance risk deals based on PERILS industry loss index exceeded $250 million.
The latest transaction relates to a private placement between Allianz Risk Transfer (ART) and Munich Re, which was arranged by Willis Re. The reinsurance deal offers €50 million of protection to European Wind risk.
PERILS is has an independent estimate of the insured property industry loss in case of a windstorm event. This PERILS industry loss estimate is utilized as the trigger for the transaction.
“Allianz Risk Transfer is excited about this new transaction and believes that the use of PERILS greatly improves deal execution in this space," said Brian Kirwan, head of insurance linked markets at ART. "The Allianz Group is one of the founders of PERILS and we believe the increasing use and acceptance of the PERILS index is an integral part of the future growth of trading in the European windstorm market.”
“This is the second transaction involving Munich Re where the PERILS index is used as the trigger," Hans Joachim Thoenes, head of retrocession at Munich Re, said. "Our main objective remains to contribute to the creation of a more liquid and standardised ILS and ILW market for European windstorm risk which is for the benefit of our clients in the insurance industry, potential investors and Munich Re.”
“We are delighted to have worked closely again with the PERILS team and to reinforce the longstanding need for an independent European Windstorm Industry Loss index," said Colin Kiddie, managing director at Willis Re. "We are also pleased to have worked with Munich Re and Allianz Risk Transfer, two of the Global leaders in the ILS marketplace.”
“With the use of the PERILS index in this transaction our loss estimates have now been used as the index base in all main forms of industry loss-based insurance risk transactions, " Eduard Held, head of sales and products at PERILS, said. "Our objectiveness, independent approach, clear loss index definition and fixed reporting schedule all facilitate the acceptance of PERILS as an authority on industry loss and exposure information in Europe.”
PERILS is the independent Zurich-based firm that provides industry-wide European catastrophe insurance data.