Detailed Loss Analysis

 

The Detailed Loss Analysis function enables you to run both a probabilistic analysis and a deterministic analysis, individually or at the same time, on the same exposure data that you imported for catastrophe modeling. If you run the analyses at the same time, the system combines the losses in the results pane.

         Catastrophe Peril Analysis: This probabilistic analysis uses simulated events generated by AIR to model loss estimates for your exposure data, both property data and workers' compensation data. AIR's stochastic event sets are designed to produce a complete and stable range of potential annual experience of catastrophe activity. The pattern and distribution of the simulated years approximate the pattern of historical and future years because their derivation is based on a scientific extrapolation of historical data. You must license this analysis and, if you want to analyze workers' compensation data, you must also license Workers' Compensation.

         Non-Catastrophe Peril Analysis: This deterministic analysis enables you to estimate non-catastrophe ground-up losses for each location in your exposure data set, and to distribute the losses into per-risk excess of loss layers. It runs against locations coded with peril "NC". You cannot license this analysis unless you also license Catastrophe Peril Analysis. You have several licensing options for the Non Catastrophe Peril Analysis.

You can configure the analysis to use any combination of licensed perils, Demand Surge settings, and financial settings such as correlation, disaggregation, and average properties.

You can choose whether to apply reinsurance programs or facultative reinsurance.

You can run loss analyses with a variety of perspectives and save results by portfolio, contract, layer, line of business, location, geography, coverage, and number of claims. If you have licensed Non-Catastrophe Peril Analysis, you can save expected losses by contract, by contract and layer, or by contract, layer, and location.

In Portfolio Mode, you run a Detailed Loss analysis on an exposure view or on a single contract in your project. In Underwriting Contract Mode, you run a Detailed Loss Analysis on a single contract.

  If you specify valid location-level inception and expiration dates for a location, and these dates are different from (that is, a subset of) the inception and expiration dates for the corresponding contract, Touchstone considers only the location-level inception and expiration dates for this location when performing a Detailed Loss Analysis.

Users with administrator privilege can:

       Set defaults for use during Detailed Loss Analyses, such as configuring Demand Surge defaults, setting default values for workers’ compensation exposures, and setting default values for non catastrophe peril analyses; refer to the Loss Defaults topic.

       Establish one or more loss analysis templates; refer to the topic Loss Analysis Template.

 

 

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Touchstone V3.0 Updated December 01, 2016