Using the ERN Models

You can perform Detailed Loss Analyses for exposures in Mexico using the following ERN models:

•       ERN Earthquake Model for Mexico

•       ERN Hydro Model for Mexico

Preparing Your Data

Before using the ERN models for a Detailed Loss Analysis, note the following special considerations when preparing your exposure data for import:

•       Code your exposure data using the PES, PWH, and/or PAL perils. For more information, see Perils for ERN Models.

•       External models require geocodes for analysis. Therefore, you must either provide and retain geocodes (i.e., latitude/longitude pairs) for exposures or supply geographic data for exposures that is sufficient for the geocoder to obtain valid geocodes. For more information, see Using Geocoding in Touchstone on the AIR Client Portal.

•       You can import exposures for any country into Touchstone. However, when you perform a Detailed Loss Analysis using the ERN models, Touchstone filters your exposures to include only exposures from Mexico in the analysis.

•       You can import Mexico exposures with secondary risk characteristics. However, the ERN models do not use these secondary risk characteristics in a Detailed Loss Analysis.

•       You can import exposures that use any layer- and/or location-level limit and deductible type combinations that Touchstone supports. For information about exposures that you have included in a Detailed Loss Analysis and that are using limits and/or deductibles that the ERN models do not support, check the analysis log.

•       The ERN models do not support campus locations, Spot Fac, or Workers' Compensation / Personal Accident.

Supported Analysis Types

The following table indicates that analysis types that you can perform using the ERN models:

Configuring a Detailed Loss Analysis

When configuring a Detailed Loss Analysis to use the ERN models, note the following special considerations:

•       You can perform a Detailed Loss Analysis using the ERN models in either Portfolio Mode or Underwriting Contract Mode.

•       To configure a Detailed Loss Analysis to use ERN models, select External Model in the Model field in the Detailed Loss Analysis Settings pane. Then, select the External Model ERN event set, along with the desired perils.

•       You must select at least one of the following loss perspectives in the Output Options pane when configuring a Detailed Loss Analysis for use with ERN models:

•       Ground-Up

•       Gross

•       Retained

•       The ERN models do not support the following features:

•       Demand surge

•       Reinsurance

•       Administrative boundaries

•       Loss modification (flexibility)

•       Database upgrades / using modeled losses from previous product versions

•       Touchstone does not perform disaggregation when using the ERN models to perform a Detailed Loss Analysis.

Viewing and Exporting Analysis Results

When viewing and exporting the results of a Detailed Loss Analysis that used the ERN models, note the following special considerations:

•       Performing a Detailed Loss Analysis produces event-level losses only and does not produce location-level losses.

•       The loss results that are generated include the annual and summary Exceedance Probability (EP) details.

•       Since the models are rate-based models, the occurrence losses are equivalent to the aggregate losses.

•       You cannot produce a CLF from the results of a Detailed Loss Analysis that used the models.