31 January 2014News

PCS eyes up marine and energy, but credibility must be there

PCS is considering the potential of developing the scope of its industry catastrophe loss data into marine and energy lines, but will only take a definitive step into that space when it has a credible offering.

That is the news from Joe Louwagie, assistant vice president, property claim services at PCS, who says that while there is “without question demand” to create a marine and energy index due to an inability to transfer risk effectively within the market, there needs to be “broad agreement” regarding the credibility of any future PCS index.

“If we are to roll out a strategic initiative, we need to be certain that we have the level of PCS quality that appropriately reflects our brand and the wider industry. If we can’t reach a level of data quality that we are comfortable with, we simply won’t commence such a project”, explains Louwagie.

He says that PCS is developing a methodology that it intends to share with select sections of the marine and energy industry in order to gauge data quality and demand within the sector. “If we receive broad agreement regarding the value of our offering and its credibility—and only then—will we consider rolling out a PCS global energy and marine platform”.

This would be entirely separate from its existing business, says Louwagie, adding that PCS is hoping to make a decision regarding the initiative’s viability by June.