Marsh announced Tuesday that it will offer corporate client’s access to the County Weighted Industry Loss (CWIL) Index, and industry loss warranty contract created by Nephila Capital and Guy Carpenter & Co. last year.
Marsh said that the offering will allow clients to structure the index as a “standalone solution” or it can be used as a bolt on to existing property programs.
“Not only can CWIL be executed quickly, but accessing dedicated capital from Nephila also reduces an organization’s exposure to insurance market cycles and diversifies counterparty exposure,” Mash’s head of Financial Risk Product Quentin Hills said in a statement. “Earthquake and windstorm insurance coverage has traditionally been difficult and expensive to obtain for organizations with significant exposures, and that is only being exacerbated in today’s transitioning property catastrophe market.”
Guy Carpenter and Nephila announced the creation CWIL last year — which incorporate a PCS index-based trigger — as a way for buyers to hedge their catastrophe risk at the county rather than regional level.
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