How was the catastrophe definition threshold of 10 million established?
PCS received many suggestions on setting the threshold ranging from 10 million to 100 million. While from a reinsurers perspective, events under 100 million have little immediate benefit, a lower threshold provides an opportunity to gather more information to develop catastrophe profiles in areas of low catastrophe frequency. It is also important for capturing information on single country events. PCS will review the threshold level every several years and make adjustments, as the industry believes necessary.
