Data specialists focused on nine markets most likely to suffer maximum windstorm loss in Europe

Catastrophe insurance data specialists Perils AG has published a QIS5 gross property windstorm scenario for nine specific markets.

The markets analysed by Perils include Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Switzerland and the United Kingdom. These markets represent the main contributors to a large, probable-maximum-loss (PML) storm in Europe.

The QIS5 gross occurrence-based loss for all nine markets combined and including geographical diversification effects amounts to €36.7bn.

Perils said the quantification of natural catastrophe risk for non-life companies by QIS5 is important because it is a big driver of underwriting risk. It noted windstorm is a particularly big risk for pan-European portfolios.

Perils also said it has contributed to the discussion on what kind of loss level is the realistic measurement for Solvency II capital adequacy requirements by applying the scenario parameters of QUIS5 to its market database.