PCS Catastrophe Loss Index
The trusted index for insured catastrophe losses
PCS® estimates are widely accepted as triggers in many traded financial market instruments, including exchange-traded futures and options, catastrophe bonds, catastrophe swaps, industry loss warranties (ILWs), and other catastrophe derivative instruments.
Using the PCS Catastrophe Loss Index in cat bonds and ILWs
Using the PCS Catastrophe Loss Index in cat bonds and ILWs
The PCS Catastrophe Loss Index offers the reliability, consistency, and transparency that issuers of insurance-linked securities (ILS) need to make smarter decisions with their capital. Many catastrophe bonds and industry loss warranty issuers choose the PCS Catastrophe Loss Index because PCS:
- is a recognized worldwide authority on property catastrophe losses
- is committed to serving the global insurance and reinsurance industry
- has more than 60 years’ experience identifying catastrophes and compiling proprietary catastrophe loss estimates
- provides insurers and reinsurers, through license agreements, use of PCS catastrophe information to help with their financial needs
- offers all PCS catastrophe information through a single source that’s easy to use: ISOnet® PCS
PCS catastrophe serial numbers assist with tracking losses and triggering reinsurance
PCS assigns a catastrophe serial number to loss events in the United States, Puerto Rico, and the U.S. Virgin Islands that cause $25 million or more in insured property losses and affect a significant number of policyholders and insurers. The PCS catastrophe serial number lets insurers track losses and reserves related to a single discrete event. In addition, many reinsurance contracts use PCS serial numbers to determine which losses will trigger reinsurance coverage.
Accurate catastrophe definitions benefit the industry
PCS’s long-standing reputation for accurately defining and tracking catastrophes helps to reduce disputes between primary insurers and reinsurers, saving the industry millions of dollars in staff and legal expenses each year. PCS catastrophe serial numbers are an industry standard available to all PCS subscribers.