Of that, about 62% in form of insurance-linked securities
PERILS AG has announced that $4.3bn of total limits were at risk as of 1 September 2013.
The figure comes from PERILS’ industry loss data. Of that figure, $2.66bn (62%) was in the form of insurance-linked securities, while $1.62bn (38%) was in the form of private industry loss warranty and derivative transactions.
PERILS said that 73% of the transacted catastrophe capacity used the high-resolution data provided by PERILS to structure bespoke industry loss triggers.
PERILS head of products Eduard Held said: “Close to three-quarters of the transacted capacity uses the available data granularity to structure protection triggers.
“Applying weighting factors by CRESTA zone, country or property lines of business significantly reduces the basis risk for the protection buyer. At the same time, disclosure requirements remain at very manageable levels.”
The insurance data company said that more than $8bn of limits had been placed through more than 100 transactions using PERILS data since launching its Industry Loss Index Service in December 2009.
PERILS chief executive Luzi Hitz said: “Five years ago, the CRO Forum launched the PERILS industry initiative with the aim of making objective and independent cat data more readily available.
“We are very grateful to see such a broad use of our data. For us, it is the rewarding evidence that the work we do is of significant value to the insurance industry.”