JERSEY CITY, N.J., November 3, 2021 — PCS®, a Verisk (Nasdaq:VRSK) business, is expanding its specialty loss lines reporting platform to include worldwide aviation industrywide insured loss events. PCS Global Aviation focuses on events with estimated industrywide insured losses of at least US$50 million. In addition to airline industry loss events, the solution will include loss estimates for general aviation events where readily available.
The launch of PCS Global Aviation follows significant market demand for an independent solution of industrywide insured loss estimates for this class of business. Market players from Bermuda, London and other key re/insurance jurisdictions approached PCS with offers of support to help develop and finalize this important collection of aviation sector data, which includes 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 expanded into specialty lines in 2017 with the launch of PCS Global Marine and Energy. PCS has since expanded its loss aggregation to include PCS Global Cyber (2017), PCS Global Terror (2018) and PCS Global Large Loss (2020). PCS Global Aviation is the latest step in PCS’s development of worldwide reporting capabilities to support a wide range of re/insurance risk and capital management activities in the global specialty lines space and include alternative risk transfer.
Alex Mican, senior PCS product development director, explains, “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 have 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 may come with new product adoption and put credible estimates in front of our clients.”
Ted Gregory, director of global PCS operations, notes, “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.”
Tom Johansmeyer, head of PCS, emphasizes that with PCS Global Aviation, there’s more data to come, enhancing 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. And as we can increase granularity, we’re able to help our clients solve more problems. Throughout the development process, we saw that a basic understanding of worldwide aviation insured losses was patchy and inconsistent, which inevitably causes pricing inefficiency and imprecise risk transfer.” He continues, “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.”
The new PCS Global Aviation historical insured loss events will be available to subscribers beginning November 3, 2021. The platform can currently support risk-transfer transactions.