PCS Estimates of Insured Property Loss

PCS® is the only insurance-industry resource for compiling and reporting estimates of insured property losses resulting from catastrophes.

For each catastrophe, the PCS loss estimate represents anticipated industrywide insurance payments for property lines of insurance covering:

• fixed property
• building contents
• time-element losses
• vehicles
• inland marine (diverse goods and properties)

PCS generally combines two methods to develop the best estimate in the shortest possible time. First, PCS conducts confidential surveys of insurers, agents, adjusters, public officials, and others to gather data on claim volumes and amounts. PCS analyzes the data and combines it with trend factors to determine a loss estimate.

PCS also maintains a proprietary database containing information on the number and types of structures, by ZIP code, for every state in the country. Using that information, PCS can accurately determine the number of insurable risks in a specific geographic area. Combined with on-the-ground survey information, the structure data forms the basis for highly reliable damage estimates.

Just days after an event, PCS completes its first survey and releases a preliminary estimate of losses. That early information has repeatedly proven reliable. For large or unusual events, PCS resurveys the affected insurers to assure accuracy and to identify loss components and relevant claim issues. PCS continues the process until staff is confident of a fully developed estimate.

Accurate information for reserving, resource management, and benchmarking
Because the accuracy of your catastrophe claim reserves can directly affect the solvency and stability of your company, you can't afford guesswork. PCS loss estimates can help you make reserving decisions with confidence.

The details in PCS estimates can also help you assign the appropriate staff to handle the claims from a particular event.

And with PCS information as a benchmark, you can assess your own claims activity compared with the industry as a whole.

For more information. . .
. . . about estimates of insured property loss — or to get in touch with a sales representative — contact ISO. You can also call us at 1-800-888-4476.