Enhanced Agriculture Model for China

Updates to policy conditions, lines of business (LOB), and administrative boundaries supported in Touchstone Re.

The Verisk Multiple Peril Crop Insurance (MPCI) Model for China (Model 85) is now called the Verisk Agriculture Model for China.

To keep up with the rapidly changing agricultural insurance market in China and the demands of the reinsurance market to gauge the insured exposures, we enhanced the Verisk Agriculture Model for China. The model update includes several key changes and additions, including a new boundary, new sub-perils for the existing peril MPCI, additional LOBs, updated geographic boundaries, coverages, policy conditions, and many others. Now, re-insurers can use the latest information to assess the policy conditions and premium rates.

Enhancements

We made these changes to the Touchstone Re public API and user interface.

  • Added a new admin boundary called China Agriculture in the Touchstone Re user interface.
  • Added new areas and subareas for the China Agriculture boundary.
  • Added new rules to apply and filter events.
  • Updated the existing geographic boundaries as the policy conditions vary by sub-area.
  • Added new lines of business: tobacco and fruit trees.
  • Divided the forestry LOB into two new LOBs: forest fire and forest comprehensive.
  • Reordered the existing lines of business.
  • Added new industry exposures from 2018 through 2022, industry loss file (ILF), and default premium rates.
  • Updated disaggregation ratio files for assessing custom ILFs.

Introduced new coverages for China Agriculture

The coverage rates in Touchstone Re lets you define which crops, livestock or forest policy a reinsurance program applies to. In addition to the existing coverages, we added the following four LOBs for China Agriculture.
  • CoverageRatePercentChinaMultiPerilCropForestComprehensive
  • CoverageRatePercentChinaMultiPerilCropForestFire
  • CoverageRatePercentChinaMultiPerilCropFruitTrees
  • CoverageRatePercentChinaMultiPerilCropTobacco

Updated rules for filtering events by multiple sub-perils

We enhanced the rules for filtering events so you can apply one or more specific sub-perils to reinsurance programs and run aggregate loss analyses. The Applies to Events in Touchstone Re user interface now enables you to create multiple values (where you can include one or more supported sub-perils) for the peril China MPCI. Likewise, the AIR.Services.LossAnalysis.EventFilter.Data service allows you to set rules in the CreateProgram and UpdateProgram requests and filter events that applies to a layer in a reinsurance program. To filter events, use the following values in your request:
  • Crop: Drought = 1
  • Crop: Flood = 2
  • Crop: Wind = 3
  • Crop: Cold = 4
  • Crop: Heat = 5
  • Forest: Fire = 6
  • Forest: Comprehensive = 7
  • Livestock: Weather = 8
  • Livestock: Disease = 9