Using the Risk Frontiers Models

You can perform Detailed Loss Analyses for exposures in Australia and New Zealand using the following Risk Frontiers models. The number in the second parenthesis is the model number in the Touchstone tModel database.

•       Hail Model for Australia (HailAUS) (232)

•       Bushfire for Australia (FireAUS) (234)

•       Inland Flood for Australia (FloodAUS) (233)

•       Tropical Cyclone for Australia (CyclAUS) (235)

•       Earthquake for Australia (QuakeAUS) (236)

•       Earthquake for New Zealand (QuakeNZ) (237)

Preparing Your Data

Before using the Risk Frontiers models for a Detailed Loss Analysis, note the following considerations related to preparing your exposure data for import:

•       Code your exposure data using the Risk Frontiers perils or the PAL (all licensed perils) code. For more information, see Perils for Risk Frontiers 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 Risk Frontiers models, Touchstone filters your exposures to include only exposures from Australia and New Zealand in the analysis.

•       You can import Australia and New Zealand exposures with secondary risk characteristics. However, the Risk Frontiers 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 Risk Frontiers models do not support, check the analysis log.

•       The Risk Frontiers 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 Risk Frontiers models:

Configuring a Detailed Loss Analysis

When configuring a Detailed Loss Analysis to use the Risk Frontiers models, note the following considerations:

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

•       To configure a Detailed Loss Analysis to use the models, select External Model in the Model field in the Analysis Settings pane. Then select the External Model Risk Frontiers 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 the models:

•       Ground-Up

•       Retained

•       Gross

•       External 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 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 Risk Frontiers models, note the following considerations:

•       Performing a Detailed Loss Analysis using the models 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.