Set storm surge and precipitation flood options
In Analysis Settings, specify whether to include an estimate of separately modeled storm surge losses and precipitation flooding when calculating losses for tropical cyclone events during a loss analysis.
Storm surge is an abnormal rise in sea level accompanying a hurricane or other storm.
Precipitation flooding, which is modeled only for Japan, India, Australia, Caribbean, and United States Tropical Cyclone exposures, accounts for flooding that accompanies tropical cyclones. You can include an estimate of the separately modeled precipitation flood losses when calculating losses for tropical cyclone events.
The following two options are available:
- In the exposure data, use peril code "PSH" to specify coverage for policies that are specifically covered for storm surge or "PPH" for precipitation flood damage. Policies that include the PSH peril (including policies coded for All Perils [PAL]) are covered for 100% of the storm surge value by default. Policies that include the PPH peril (including policies coded for All Perils [PAL]) are covered for 100% of the precipitation flood value by default. You can also include separate policy and reinsurance terms for the PSH or PPH peril if separate terms apply for this peril.
- In the loss analysis settings for tropical cyclone perils, specify the percentages for storm surge or precipitation flood loss to include in wind loss estimates. This option applies only for policies not specifically covered for flood, and you can set the percentage by line of business.
These are the default percentages for precipitation flood and storm surge that Touchstone includes in wind loss estimates:
- For all United States and World event sets, the storm surge default is 5%. When a world event set is selected, the storm surge default is applied to all exposures.
- For Japan event sets, the storm surge default is 5%.
- You can modify the storm surge value up to 100%.
- The precipitation flood default is 0% for all United States and World event sets.
- When a World event set is selected, the precipitation flood default (0%) is applied to all exposures. For all other event sets, the precipitation flood default is 100%.
Procedure
- Create a new detailed loss analysis.
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In the Analysis Settings pane, click
next to the Storm Surge (AIR) or Precipitation Flood field.
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In the Storm Surge Options dialog box or in the
Precipitation Flood Options dialog box, specify the
percentages you want to use.
If you are configuring an analysis and you have selected multiple analysis targets, Touchstone uses only the LOB (line of business) percentages specified in the first analysis target listed in the Analysis Target field in the New Detailed Loss Analysis pane. In this case, we recommend that you run a separate analysis for each analysis target, where you can set the peril by LOB values for each analysis target.
- Click OK.