New features in Touchstone ReTM 2021 will make it much easier for you to align the summary loss statistics you receive with the risk profiles provided by some cedants. This will not only make these summary losses more useful, but also help you derive more insights into your data to better identify your risk. With the ability to import event-loss tables (ELTs) or full annual exceedance probability (EP) curves, clients will be able to import either type of loss summary directly into Touchstone Re in one simple and streamlined process.
To illustrate how powerful and how simple this process is, we will introduce Dartmouth Re, a fictitious company that has been struggling to keep up with the manual process of getting EP curves they receive from the market into a format they can use for catastrophe modeling. With Touchstone Re 2021 they will be able to cut down the time spent on this task significantly and have more control of the data than they ever had before.
New features in Touchstone Re 2021 leverage AIR’s industry exposure database and industry loss files to disaggregate the event-level losses to area/subarea and by line of business. It is especially beneficial to users who regularly participate in retrocession and sidecar transactions, as it will now allow you to capture all of your risk more easily with Touchstone Re.
The feature also allows for downstream analytics that were previously much more difficult. For example, portfolio analytics by geography concentrations or line of business splits across a portfolio that may consist of reinsurance treaties, cat bonds, retro treaties, sidecars, etc., all of which may have different levels of exposure/loss provided, can now be analyzed at the same resolution.
EP Summary to ULF
Currently, Dartmouth Re’s workflow for handling EP summaries from external sources is a highly manual process that requires the user to create a set of artificial exposure data and programs with desired loss as EP adjustments and repeat that process for each curve. With the new import feature, however, they can skip that manual process entirely. The new approach is simple and much more flexible, allowing them to save time on the import process and spend more time understanding their risk profiles.
In Touchstone Re 2021, Dartmouth Re simply launches the conversion tool, names the loss set, and specifies that they want to have the User-Created Loss File (ULF) automatically imported into a company that corresponds to a specific reinsurance contract. After selecting the comma-separated values file (CSV) containing one more loss distributions, the user specifies the geography and peril for each, validates the input file, and then completes the conversion. In just these few steps, Dartmouth Re was able to convert a set of EP summary curves to a ULF in minutes rather than hours.
With the increased popularity of sidecars in the insurance-linked securities (ILS) market, some reinsurers are putting out very coarse data, but Dartmouth Re can solve for this with a simple conversion from ELT to ULF. All Dartmouth Re has to do is disaggregate ELT loss by model, area, and line of business. From there, the conversion from ELT to ULF is complete. Users can then easily specify retro contract terms to apply to the ULF files they have created from this process in Touchstone Re.
Touchstone Re 2021 will give you more control of your data and allow you to do more in just one system. Not only does the new ELT import feature allow you to get additional insights from your data for your underwriting purposes, but it also allows you to better understand your risk. Save time and have more data flexibility with Touchstone Re 2021.
