Enhanced demand surge

This topic summarizes the new loss inflation model supported in Touchstone public API.

We introduced a new methodology that is country-specific and accounts for the whole year instead of for each event individually.

Enhancement

This enhancement provides a global demand surge solution with regional variability. It also makes it easier to adjust for changes in economic or market conditions and for unusual situations such as government intervention, infrastructure damage, or loss inflation caused by pressure to settle claims. The new demand surge update supports the following European models:

  • Verisk Extratropical Cyclone Model for Europe

  • Verisk Severe Thunderstorm Model for Europe

  • Verisk Earthquake Model for the Pan-European Region

  • Verisk Inland Flood Model for Central Europe

  • Verisk Inland Flood Model for Great Britain

Note: The new demand surge does not apply to the following LOB: auto, forestry, offshore, workers' compensation, and MPCI.

Apply demand surge by country

We implemented a country-specific option in the DemandSurgeRegionOption class that you can include in each loss analysis request. Use the new methodology to more accurately code the location-level terms by perils and sub-perils. The event sets in Touchstone are specific to regions. You must select an appropriate region for the custom event set for which you want to calculate the demand surge.

Table 1. Updated AIR.Services.LossAnalysis.Data namespace

Object

Type

Description

UseCountrySpecific

Boolean

  • True

  • False (Default)

(Optional) Indicates whether you want to apply demand surge factor for a specific country