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© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Mission StatementPCS is committed to serving our customers and supporting the global insurance industry through the identification and provision of reliable, accurate, objective, and timely catastrophe loss estimates.
Core ValuesService
Integrity
Objectivity
Confidentiality
Transparency
Reliability
Consistency
Operating Principles We will achieve our mission by:
Exceeding service and quality expectations
Facilitating an ease of doing business
Consistently producing a high quality product
Innovating within a culture of continuous improvement
Providing value in corporate citizenship
Who We Are
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
U.S. catastrophe claim information since 1950
PCS formed at request of insurance industry
Loss development surveys started in 1998
Estimates based on retrospective claims review
PCS Canada since 2010
Continual improvement amid consistency w/past
Aggregating Actual Claims Data for 63 Years
PCS HistoryServing the insurance industry
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Homeowners and the public
Primary insurance carriers
Independent Claims Adjuster firms
NOAA and governmental economists
Industry quarterly and annual reports
Catastrophe modelers
Reinsurers and reinsurance brokers
Capital markets
Providing a Service to Support the Insurance Mechanism
PCS Data UsersBroad benefit across industry and in various sectors
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
3.06
6.52
3.55
10.65
7.758.95
24.4
14.39
9.95
15.4
12
20
13
25
18
22
19 19 18
32
PCS Cat Activity 2014 Winter storms and thunderstorms
2014
Average
Thunderstorms Drive 2014 Activity
``
32 designated cats $15.4B in insured loss 6 winter storms, 1 EQ 25 Thunderstorms
27 designated cats
$21B in insured loss
More peril diversity
# of
Cats
(In $B)
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Cat No. Period States Perils Status Personal Auto Commercial Total insured Loss
63 Feb 14 - 15 CT, DE, MA, MD, NH, NJ, NY, PA, RI, VA Freezing, Ice, Snow, Wind Open $327,230,000 $4,240,000 $134,730,000 $466,200,300
64 Feb 16 - 17 GA, NC, SC, TN, VA Freezing, Ice, Snow, Wind Closed $47,960,000 $3,718,000 $18,670,000 $70,348,000
65 Jan 26 - 28 CT, MA, ME, NH, NY, RI Freezing, Ice, Snow, Wind Closed $31,320,000 $2,119,000 $9,570,000 $43,009,000
66 Feb 1 - 4 CT, IL, IN, MA, MI, NY Freezing, Ice, Snow, Wind Closed $78,680,000 $1,607,000 $20,630,000 $100,917,000
67 Feb 7 - 11 CT, MA, NH, NY, RI Freezing, Ice, Snow, Wind Closed $187,850,000 $1,969,000 $37,603,000 $227,422,000
68 Feb 16 - 22CT, DC, DE, IL, KY, MA, MD, ME, MI, NC, NH, NJ, NY, OH, PA, RI, SC, TN, VA, VT
Freezing, Ice, Snow, Wind Open $1,074,700,000 $9,235,000 $268,150,000 $1,352,085,000
69 Mar 3 - 5 AR, KY, NY, PA, WV Flooding, Freezing, Ice, Snow, Wind Closed $96,600,000 $1,656,000 $20,850,000 $119,106,000
70 Mar 25 - 26 AR, KS, MO, OK Hail, Tornadoes, Wind Open $188,080,000 $58,860,000 $55,640,000 $302,580,000
71 Mar 31 - Apr 1 AL, AR, GA, MS, OK, TN, TX Flooding, Hail, Wind Closed $92,650,000 $39,254,000 $3,757,000 $135,661,000
1st Qtr. $2,125,070,000 $122,658,000 $569,600,000 $2,817,328,000
72 Apr 2 - 3 KS, KY, MO Flooding, Hail, Tornadoes, Wind Closed $105,800,000 $24,600,000 $51,800,000 $182,200,000
73 Apr 7 - 10AR, IA, IL, IN, KS, KY, MI, MO, NC, OH, OK, PA, TN, TX, WI, WV
Flooding, Hail, Tornadoes, Wind Open $529,590,000 $142,510,000 $107,850,000 $779,950,000
74 Apr 16 - 17 KS, OK, TX Flooding, Hail, Tornadoes, Wind Closed $42,480,000 $56,345,000 $3,330,000 $102,155,000
75 Apr 18 - 21 AL, AR, FL, GA, KS, LA, MS, NC, OK, PA, SC, TN, TX Flooding, Hail, Tornadoes, Wind Open $570,870,000 $164,938,000 $46,140,000 $781,948,000
76 Apr 24 - 28 AL, FL, GA, KY, LA, MS,TX Flooding, Hail, Tornadoes, Wind Open $434,480,000 $122,058,000 $75,600,000 $632,138,000
77 Apr 27 - 28 MD Riot; Civil Disorder Open TBD TBD TBD TBD
78 May 3 - 4 IA, KS, MN, NE, WI Flooding, Hail, Tornadoes, Wind Open TBD TBD TBD TBD
79 May 6 - 11 CO, IA, KS, NE, OK, TX Flooding, Hail, Tornadoes, Wind Open TBD TBD TBD TBD
2nd Qtr. $1,683,220,000 $510,451,000 $284,720,000 $2,478,391,000
2015 Total $3,808,290,000 $633,109,000 $854,320,000 $5,295,719,000
2015 PCS Cats OverviewDriven by Winter Storms and Thunderstorms
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Challenging 2014 and 2015 CATSWinter storms
Heavy snow and/or low temps
Multiple fronts
Cumulative snow effect
Overview
PCS
The date range challenge
Reviewing past PCS
Aligning to our role
Winter storm dates & damages oftentimes don’t align
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Cat Planning and New TechnologyProperty claim technology awareness
When I was an adjuster in Sioux Falls, South Dakota Camera Tape measure Notepad Dictaphone Calculator Estimating worksheets
When I managed a property claims region Digital camera to upload from home Tape measure Scoping notes Pre-mobile cell phone Dictaphone Calculator Laptop
20 years ago
6 years ago
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Dimension rooms Diagram structures
Technology presented in 2014 as “years away” has become a reality by 2015
Cat Planning and New TechnologyProperty claim technology is changing the industry
Mobile Device
Thermal Imaging
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Cat Planning and New TechnologyRemote diagramming and remote adjusting
Drone diagramming
Exterior and Interior remote diagramming available in 2015 or 2016; race then begins to apply and use it
Multiple companies racing to patent this
Will be combined with thermal imaging
Can record video and download to file
Mobile device maps interior for XACTIMATE
Video file created and downloaded to file
Estimate written and submitted to insured
Mobile diagramming
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Cat Planning and New TechnologyExisting challenges
Drone diagramming
Exterior and Interior remote diagramming available in 2015 or 2016…..race then begins for how to apply and use it
Strict FAA issues for line of sight and airports
Unresolved privacy and civil liability issues
Drone training needs to be extensive
Significant cost to operationalize
Capability and willingness of policyholders
Changing skills needed for Adjusters
Mobile diagramming
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Cat Planning and New TechnologyThe big question.....what is the impact to insurance carriers?
How will companies use the technology and how fast?
What will be the impact to staff field adjusters?
What will be the impact to IA field adjusters?• Drone operational skills
• Broad use of IAs instead of staff or less use?
• Centralized estimating with mobile inspection?
• Post-event cat site logistics and management
How will loss prevention and mitigation change?
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Claims TechnologyEmerging SMART Homes - Convenience
House temperature
Ceiling fans
Washer / Dryer
Yard Fixtures
Watering of lawn
Water heater
Stereo
Security Alarm
Lamps and lights
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Claims TechnologyEmerging SMART Homes – Loss Mitigation
Water detection
Doors opening
Motion detection
Smoke detection
Carbon monoxide detection
Wifi Cameras
Remote video monitoring
Refrigerator spoilage alerts
Freezer thawing
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Claims TechnologyEmerging SMART Homes – Impact on Insurance
Data kings will be manufacturers of SMART items
New models needed for premium calculation
Significant discounts (25%) for SMART devices
Slow companies at a competitive disadvantage
SMARTER homes generate fewer claims
Claim frequency reduction impacts staffing needs
“SmartThings wants to eviscerate the Home Insurance Industry” – Forbes magazine 8/14/14
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Cat Planning and New TechnologyLeveraging mapping technology
Quickly Identify extent of probable damage
Matching claim size to skill level
Improves accuracy, customer service
Reduces cycle time
Overlays claims to damage
Matches before/after visuals
Improves ability to quickly assess
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
PCS TurkeyLaunching service in Turkey
PCS Turkey aligns with IUC and PCS mission to serve the Turkish insurance market
Industry index supports reserving accuracy
Ability to use for risk transfer
Supports retrocession risk transfer
Calibrates and enhances cat modeling
Facilitates sharing of global best practices
Shares global trends with Turkish market
Benefits to Turkish Insurance Industry
Active for any catastrophe
after May 28, 2015
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
PCS CommitmentConfidentiality and document destruction
Restricted information to ten names at IUC and PCS Quarterly signed confidentiality agreements NDAs in place where requested
Confidentiality
180 days after event close Includes drives, email folders, and printed Audited to ensure completed
Document Destruction
Core ValuesService
Integrity
Objectivity
Confidentiality
Transparency
Reliability
Consistency
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Residential: Building and Contents
Auto: Personal and Commercial
Commercial: Building, Contents, and BI/CBI
PCS Turkey purpose is to serve Turkish insurance market
PCS TurkeyDevelopment of an insured loss estimate after catastrophes
Categories
Includes entire country
Estimates by CRESTA zone
Geography
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
PCS Turkey purpose is to serve Turkish insurance market
Includes all perils resulting in PD / BI
Natural perils resulting in insured loss
Man-made perils resulting in insured loss
Catastrophe designation threshold is $10M
Perils
Bulletin issued within 48 hours after event
Preliminary estimate at 30 days (asap w/eq)
First resurvey at 60 days
Every 60 days until finalized
Reporting timeframe
PCS TurkeyDevelopment of an insured loss estimate after catastrophes
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
PCS Turkey purpose is to serve Turkish insurance market
USGS alerts within minutes of all EQs
Cat designation bulletin
Survey / re-survey bulletins
Quarterly reports
Reports
Committed to free service for data contributors
Program maintained by international sales
Aggregated data used for loss estimates
Business Model
PCS TurkeyDevelopment of an insured loss estimate after catastrophes
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Cat Planning and ResponseSharing with Turkey industry prevention/mitigation trends
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Commenced in April “PCS Benchmarking” Service
Launch/analyze/distribute catpay report in July 2015
Providing industry benchmarking data and reports to support informed decision making
Personal cat claims management (publish by 11/15/15)
Commercial cat claims management (2nd qtr. 2016)
Cat vendor management
Independent Adjuster cat management
PCS Turkey BenefitsPCS Benchmarking reports free to data contributors
2015-
2017
Reports
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
Earthquake claims handling Training best practices Loss development trends with earthquakes Earthquake pricing Earthquake catastrophe modeling Earthquake catastrophe mgmt.
Property claims severity Vendor Management Managing flooded vehicle salvage Business continuity after earthquakes Policyholder education/loss mitigation Managing an earthquake cat Claims technology
PCS Turkey BenefitsSupporting global speakers for local conferences
© Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.
PCS Turkey Looking forward to serving the Turkish industry
Thank you for attending today
With any questions, reach out:
Menekşe Uçaroğlu at [email protected]
Joe Louwagie at [email protected]
We welcome your thoughts and suggestions
Questions and answers now or at any time