Are You Writing Canadian ILWs?By Gary Kerney | June 26, 2013
Cedents have used the PCS® Catastrophe Loss Index heavily in industry loss warranty (ILW) exposure to U.S. natural catastrophe risk. The PCS index likely accounts for more than half the market. This straightforward index makes it faster and easier to transfer risk, and it's among the most reliable tools in the ILW community. A similar resource is available for Canadian risks, and the market has recently shown growing interest. Here are some key facts about PCS Canada to help you get started:
- PCS Canada launched in 2010, covering all provinces.
- So far, PCS has designated 27 catastrophes in Canada — with six last year and two so far in 2013.
- Four catastrophe bonds have used PCS Canada in their triggers.
- PCS Canada uses the same methodology as the U.S. operation. To learn more, go to Everything You Need to Know about the PCS Catastrophe Loss Index.
- PCS issued two catastrophe bulletins for Sandy: one for the United States and one for Canada. The underlying approach facilitates coastal Canadian risk transfer.
- Given the consistency of the PCS methodology, cedents can write targeted Canadian ILWs (specifically, by province and line of business). Examples include Quebec auto and Alberta personal property.
- PCS members can add Canadian data to their operations quickly and easily. Learn more now.
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