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CatX integrates PCS indices and loss reports into its platform to seamlessly facilitate indexed-based transactions across various geographies and perils.
PCS is one of the leading index and insured loss compiling and reporting providers. The companies’ services are widely used in reinsurance, industry loss warranties and catastrophe bond transactions. PCS offers indices and loss reports for the United States, Canada, Turkey, Mexico, Asia-Pacific, and Latin America, covering marine and energy, cyber, terror, and large onshore property programs.
With the integration of PCS investors can access a variety of index-based opportunities such as industry-loss warranties.
Reduce moral hazard: industry loss thresholds and reporting by an independent party reduces risk of adverse selection of risk exposures
Diversify risk exposure: Indices allow for direct participation in an industry portfolio of specific risk
Increase transparency: Insured losses are compiled and reported transparently by an independent third party
Lower transaction costs: Simple structure and legal language result in lower issuance costs
On CatX, insurers can select the PCS indices they would like to use for their transaction in the submission builder. By setting the required parameters for the underlying index (i.e. attachment and limit), they are able to obtain quotes from alternative capital providers. Using index-based solutions offers insurers a number of advantages:
Improve rates on-line: Investor interest in simplified, transparent structures means insurers can access capacity at improved rates
Increase speed to market: Using an index as the basis for the protection helps to increase the speed of modeling, pricing and placing the transaction through CatX
Lower transaction costs: Simple structure and legal language result in lower issuance costs
