For each catastrophe, the PCS Canada® Service loss estimate represents anticipated industrywide insurance payments for property lines of insurance covering:
The PCS Canada Service generally combines two methods to develop the best estimate in the shortest possible time. First, staff members conduct confidential surveys of insurers, agents, adjusters, public officials, and others to gather data on claim volumes and amounts. Then they analyze the data and combine it with trend factors to determine a loss estimate. Staff members may also conduct on-the-ground surveys.
After an event, the PCS Canada Service will release a preliminary estimate of losses. For large or unusual events, the service will resurvey the affected insurers to assure accuracy and to identify loss components and relevant claim issues. Staff members will continue the process until they are confident of a fully developed estimate.
Because the accuracy of your catastrophe claim reserves can directly affect the solvency and stability of your company, you can't afford guesswork. The PCS Canada Service loss estimates can help you make reserving decisions with confidence.
The details in the estimates can also help you assign the appropriate staff to handle the claims from a particular event.
And with the information as a benchmark, you can assess your own claims activity compared with the industry as a whole.