PERILS, the independent Zurich-based organization that provides industry-wide catastrophe insurance data, has disclosed a third loss estimate of 284 million euros for extratropical cyclone Zeus, which affected France on March 6 and 7.
The revised estimate of the property insurance market loss is up from the second loss estimate of 269 million euros, issued by PERILS on June 6, three months after the event. The revised figure is based on actual loss data collected from insurance companies and is issued six months after the event, in line with the PERILS reporting schedule, the organization explained in a press release on Wednesday.
The initial loss estimate, on April 13, was 192 million euros.
In the third loss report, the market loss data are available by CRESTA (Catastrophe Risk Evaluation and Standardizing Target Accumulations) zone and property line of business. This loss footprint information is complemented by gust speed values and loss ratios, which show the incurred loss from Zeus as a percentage of the sums insured, PERILS explained in the release.
“Given its market loss of EUR 284 million, windstorm Zeus ranks as a moderate event on a European scale, as it is a loss figure that would be expected to be reached or exceeded at least once a year,” Luzi Hitz, CEO of PERILS, said in the release. “For the French market alone, however, it represents a more significant event as such a loss would be expected to be reached or exceeded every three years.”
Extratropical Cyclone Zeus, 6-7 March 2017, Loss Footprint: The map shows insured property market losses per CRESTA zone and km2 for windstorm Zeus which affected France on 6 and 7 March 2017. In its third loss report, PERILS estimates the total market loss of Zeus at EUR 284m.
The detailed loss footprint for Zeus released on Wednesday provides new data points relating to the damage to insured property caused by windstorms in France. In addition, it provides new benchmark information for the calibration of existing risk models and thus contributes to a more robust and realistic assessment of European windstorm risk.
In line with the PERILS loss reporting schedule, the fourth loss estimate for Zeus will be released on March 6, 2018, 12 months after the event.
PERILS provides industry-wide nat cat exposure and event loss data. PERILS industry loss estimates provided via the PERILS Industry Loss Index Service can be used as triggers in insurance risk transactions, such as industry loss warranty (ILW) contracts or insurance-linked securities (ILS). The service currently covers the following 16 countries: Australia, Austria, Belgium, Canada, Denmark, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Sweden, Switzerland, Turkey and the United Kingdom.