1. International Istanbul Insurance Conference 25 September, 2014 Joe Louwagie Assistant Vice President Property Claim Services

2. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission. Mission Statement PCS is committed to serving our customers and supporting the global insurance industry through the identification and provision of reliable, accurate, objective, and timely catastrophe loss estimates. Core Values Service Integrity Objectivity Confidentiality Transparency Reliability Consistency Operating Principles We will achieve our mission by:  Exceeding service and quality expectations  Facilitating an ease of doing business  Consistently producing a high quality product  Innovating within a culture of continuous improvement  Providing value in corporate citizenship Who We Are

3. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.  U.S. catastrophe claim information since 1950  PCS formed at request of insurance industry  Loss development surveys started in 1998  Estimates based on retrospective claims review  Continual improvement amid consistency w/past Aggregating Actual Claims Data for 63 Years PCS History Serving the insurance industry

4. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.  Primary insurance carriers  Marketing and Sales for agency bonuses  NOAA and governmental economists  Industry quarterly and annual reports  Catastrophe modelers  Reinsurers and reinsurance brokers  Capital markets Providing a Service to Support the Insurance Mechanism PCS Data Users Broad benefit across industry and in various sectors

5. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission. PCS Estimate Benefits to Insurance Carriers  CAT claim frequency  Concentration of risk assessment  Loss ratio analysis Underwriting Actuary  Probable Maximum Loss analysis  Risk transfer ability  Internal quality controls Risk Mgmt.  Reserve and pricing calibration  In-house model baselining  Strengthens regulatory approval Claims  Cat code for reinsurance  Claims quality calibration  Adjuster resource allocation

6. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission. PCS Cat Activity 2014 Winter storms and thunderstorms 20142014 AverageAverage Thunderstorms Drive 2014 Activity ``  24 designated cats  $11.8B in insured loss  5 winter storms, 1 EQ  18 Thunderstorms  24 designated cats  $16.6B in insured loss  More peril diversity # ofCats# ofCats (In $B)

7. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission. Cat Bond Market Overview 1 st half 2014 $5.6 billion, 18 transactions $4.7 billion, 14 transactions PCS data used in 36% of worldwide transactions North American Issuance Total Issuance Rest of World North America PCS All other

8. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission. First Half 2014 Issuance Busiest in Market History 87%

9. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission. Cat Bond 2014 Trends Market diversity in geography and size  Five first time sponsors  $1.3B in fresh capital  Cat bond heavy with cat bond lite  Activity at the extremes  Continued Florida focus  Both small and large Armor Re Citrus Re Gator Re Sanders Re  Indemnity trigger use of PCS  PCS on about 1/3 of cat bonds

10. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission. Cat Planning and New Technology Verisk Climate Respond and XACTWARE Property Insight Benefits  Enables pro-active outreach  Helps refine reserve cone  Differentiates service  Allows thousands of granular views  Supports PCS Estimates  Improves Adjuster positioning  Facilitates improved planning  Decreases response time  Enables pro-active outreach  Continuing to add perils Peril map visuals Aerial technology

11. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission. Cat Planning and New Technology Leveraging mapping technology from an IA perspective  Quickly Identify extent of probable damage  Matching claim size to skill level  Improves accuracy, customer service  Reduces cycle time  Overlays claims to damage  Matches before/after visuals  Improves ability to quickly assess

12. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission. Dimension roomsDiagram structures Drone diagramming How Long Before Drones Diagram Houses? Cat Planning and New Technology Property claim technology awareness Mobile Device Thermal Imaging

13. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission. PCS Innovation App roll-out in September 2014 PCS Innovation Driven by Customer Feedback PCS APP  Serves a need for field access  Ready for September release  Ready for US and PCS-Canada  Facilitates future innovation  Photo upload capability in 2015

14. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.  Market demand for energy and marine index  Current inability to transfer risk effectively  Responding to customer requests for PCS to review PCS Global Energy and Marine Decision in 1 st Quarter 2015 PCS Global Energy and Marine Pursuit of a new PCS index (fully separate from core PCS) Market need  Hired in April consultant to develop methodology  Commenced two working groups in July  Broad industry representation on both work groups  Will share with market prior to commencing Project status

15. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission.  Daily weather monitoring  Storm and event tracking reports  Tracking of claims and insured loss  Sharing of global cat planning and response best practices  Use for reinsurance and capital markets transactions PCS in a local market Using PCS to help with catastrophes PCS Exists to Support the Global Insurance Industry

16. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission. Questions & Answers Questions at any time: JLOUWAGIE@VERISK.COM

17. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission. Objectivity Integrity Service Transparency Reliability Consistency

18. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission. Auto Cat planning Protecting your value and service 250K Flooded vehicles from Sandy  One vs. multiple tows  Salvage yard with $0 storage  Agreed re-sale fees & proper titling  Maximizing re-sale value  Storage yard volume reduces cost  Agreements with car rental agencies

19. © Insurance Services Office, Inc. 2013, a Verisk Analytics company. Not for copying or distribution without permission. PCS Cat Activity 2014 Distinguishing between one and two cats in early January  January 3-5  Heavy Snow  Over by January 5th Cat#31Cat#31 Cat#32Cat#32  January 5-8  Continual freeze in MW  Temperature rise in East Winter Storm drives 2014 First Quarter Activity