17 December 2009
Published in: Cat risk - ILS
First PERILS-based deals launched
PERILS AG has announced the placement of the first two insurance risk transactions based on its industry loss index. The transactions relate to industry loss warranty (ILW) reinsurance contracts which will provide protection against a major European windstorm event.
One contract involves Credit Suisse Asset Management as the protection provider and Munich Re as the counterparty. The other was arranged by Willis Re with the counterparties remaining unnamed.
PERILS, an independent Zurich-based company established in February to aggregate and provide industry-wide European catastrophe insurance data, will provide data to determine the property market loss arising from a large windstorm event affecting Europe. This information will be used to produce an index value to determine the payout of the protection under the ILW contracts.
Niklaus Hilti, head of insurance-linked strategies at Credit Suisse, commented: "The use of a PERILS industry loss index in this ILW reinsurance contract is a key milestone in the development of a more mature and liquid market which is in the best interest of both reinsurers and investors. We are happy to support PERILS together with Munich Re."