Turkey: CAT loss aggregation service launched
Source: Middle East Insurance Review | Jul 2015
Istanbul Underwriting Center (IUC) and Verisk Analytics’ Property Claim Services (PCS) have launched a service, PCS Turkey, to deliver industry-wide CAT loss estimates for events occurring throughout the country.
Insurers, reinsurers, and other risk transfer professionals will be able to use the estimates published by PCS Turkey to improve risk and capital management.
Like PCS in the US and Canada, PCS Turkey will use projected ultimate loss estimates from insurance industry participants to aggregate industry-wide loss and estimated claim counts for events caused by all natural and man-made perils. Events with at least US$10 million in projected insured property losses will receive CAT designations, and the reports will include residential (building and contents) auto (residential and commercial) and commercial (building, contents, and business interruption) industry-wide loss estimates.
To determine whether PCS Turkey should evaluate an event, members of the IUC and PCS teams will review events likely to reach the $10 million threshold to decide when they should contact industry participants to supply projected ultimate loss estimates. If the claim types and volume suggest that an event could be a catastrophe, PCS Turkey will issue a CAT designation bulletin.
Following the event designation, IUC and PCS will review the submitted data to develop CAT loss estimates, which are communicated through bulletins. PCS Turkey will re-survey each event until it considers an event closed – when loss development has stabilised and no significant unknowns exist that could substantially affect the overall industrywide insured loss.
PCS is a business of Verisk Analytics, a New Jersey-headquartered data analytics provider serving customers in insurance, healthcare, financial services, government, and risk management.