Willis Re, the reinsurance arm of broker Willis Group Holdings, and Thomson Reuters launch the Willis Re Catastrophe Price Index on the Thomson Reuters Insurance Linked Securities portal.
The index measures pricing levels in the U.S. property catastrophe reinsurance market and will provide valuable insight to participants from across the reinsurance and Insurance Linked Securities (ILS) marketplaces.
While existing indices track headline pricing by measuring “rate on line” in isolation, the Willis Re Cat Price Index also tracks the underlying loss cost level, as measured by “loss on line.” This analysis provides insurance companies, equity analysts and investors with critical information to evaluate changes in the property catastrophe reinsurance market.
The Thomson Reuters Insurance Linked Securities portal is aimed at equipping participants at the convergence of Insurance and Capital Markets with the tools to gather in-depth information and collaborate with industry peers.
“We are delighted with the Willis and Thomson Reuters partnership,” says Yves Provencher, executive vice president and managing director, Willis Re Analytics.
“The Willis Re Catastrophe Price IndexTM tracks the key metrics of reinsurance pricing using the latest in online catastrophe data dashboard technology. This innovative approach gives additional insight into the convergence of insurance and capital markets. We believe this analytical tool will prove to be very useful to market observers and participants.”
“Catastrophe bond supply is expected to pick up as costly disasters such as Hurricane Ike and heavy losses on investments combine to constrain capacity in the traditional reinsurance market,” says Andrew Hausman, executive vice president and global head, Fixed Income, Thomson Reuters.
“In this environment, the demand for more sophisticated pricing analysis will increase, and the Willis Re Catastrophe Price IndexTM is designed to meet that demand. We are excited to offer this innovative analytical tool to our reinsurance and ILS community members.”
L.D.