Catastrophe Insurance Data
PERILS AG is an initiative of the European insurance industry and delivers market data for natural catastrophe risks and losses in Europe. The company is based in Zurich and operates an IT platform, where insurance companies can submit exposure and loss data in a highly secure manner. Based on the insurance data PERILS calculates market exposure and losses which are available for subscribers. The PERILS loss index is used in a large number of ILS and ILW transactions. By Sep 30, 2013, 4.3 Billion USD PERILS-based capacity was at risk.
PERILS AG has been a customer of mp technology since 2009. Based on the well established Storyboard-Workshop approach, PERILS and mp technology have specified in a joint effort the requirements of the platform and the target software architecture. The system implementation followed with a monthly release cycle and in close cooperation with the PERILS personnel to ensure that the target system would fulfill the needs of PERILS. This approach made a very tight timeline realistic with an initial public version of the system available six months after PERILS had been incorporated as a company.
The following aspects were essential for the implementation of the PERILS platform.
- Usability: End users are guided through the process with a modern Web UI which supports efficient and user friendly data management and data retrieval. Backend users can quickly process large amounts of data and can still keep an overview of all intermediate results for validation purpose.
- Security: The complete system architecture has been designed with security and sensitivity of the data in mind. A web application firewall is used to enforce multi-factor authentication and data submitted by insurance companies is immediately encrypted and anonymized before being processed.
- Performance and Scalability: The system processes complex loss estimations with large datasets in short time. An increase in input data only leads to higher execution time, but will not endanger the stability of the system.
- Quality: The system’s data quality is ensured with manual verification workflows for data from insurance providers and a very large number of automated test cases for the complex calculations and the user interface.
The platform has been continuously extended by mp technology for PERILS, after launch of the initial system. mp technology itself has also noticeably developed by the project PERILS and has grown. In the interim (April 2015), the platform covers storm risks, flood risks and earthquake risks for 18 European countries, based on data of more than 100 insurance groups for more than 5’000 geographical risk zones.