Analysis Settings Pane (Loss)

The Analysis Settings pane contains the following fields and buttons that enable you to configure catastrophe peril analyses and non-catastrophe peril analyses.

Field

Description

Can Be Included in a Template?

Model

The model set to use when performing this catastrophe peril analysis:

•       To use AIR model(s), select AIR Default.

•       To use an external model set, select External Model and then select the model's event set.

•       To use a custom user model, select User Model, and then select the custom model's event set.

Yes

Catastrophe Peril Analysis

Specifies whether you want to run a catastrophe peril analysis. To run a catastrophe peril analysis, select this check box and then configure the associated catastrophe peril analysis fields. If you do not want to run a catastrophe peril analysis, clear this check box.

Yes

Region

 The region to use for this catastrophe peril analysis. Select the desired region. Touchstone filters the list of events based on the selected region.

 

Event Set

The event set to use for this catastrophe peril analysis. Select the desired event set. Click for details.

Yes

Perils

The perils to include in this catastrophe peril analysis. Select the check box next to one or more perils and/or sub-perils. Click   next to a peril or sub-peril to configure additional, peril-specific settings.

Yes

Event Set Filter

Indicates whether you have applied event set filters for this catastrophe peril analysis. To apply an event set filter, click Apply event set filter. To view, edit, or delete an applied event set filter, click View/Edit event set filter.

Yes

Demand Surge

Indicates whether to include demand surge in this catastrophe peril analysis. To include demand surge, select With and then click Select Custom Curve. If you do not want to include demand surge, select Without.

Yes

Financial Settings

Specifies a series of financial settings for this catastrophe peril analysis.

Yes

Correlation

Specifies whether you want to apply correlation factors between loss distributions during this catastrophe peril analysis. Select On or Off.

Yes

Disaggregation

Specifies whether you want Touchstone to perform disaggregation during this catastrophe peril analysis. Select On or Off.

Yes

Average Properties

Specifies whether you want Touchstone to apply average properties during this catastrophe peril analysis. Select On or Off.

Yes

For Invalid Con/Occ Pairs

Specifies the action that you want Touchstone to perform upon encountering invalid construction/occupancy class code pairs during this catastrophe peril analysis. Select one of the following options:

•       Ignore: The loss engine omits from the analysis all locations that have construction and occupancy combinations that are invalid based on region/country, model, and/or peril. In this case, Touchstone does not produce loss for these locations. To identify locations that were not included in a loss analysis, check the analysis log.

•       Use System Default: During a Detailed Loss Analysis, Touchstone remaps invalid construction and occupancy code combinations using one or more of the following construction and occupancy class codes, as applicable. In Touchstone 6.0 and later, when you select this option, Touchstone uses this option for each model individually within the analysis. In previous versions, Touchstone used this option when the construction/occupancy combination was invalid for all models within the analysis.

•       Unknown construction (100)

•       General commercial occupancy (311)

 

Touchstone does not remap construction and occupancy codes for offshore locations, as all combinations of offshore asset construction and occupancy are valid. However, make sure that you do not accidentally assign an onshore construction or occupancy code to an offshore location.

In some models, the construction and occupancy class code combination 100-300 is not valid, and Touchstone remaps this combination to 100-311. However, for exposures in South America, the construction and occupancy class code combination 100-300 is valid, and Touchstone does not remap this combination.

During an analysis, upon identifying a location with an invalid construction and occupancy code combination, Touchstone remaps the affected construction and/or occupancy codes by performing one of the processes listed in the following table for each model involved in the analysis:

 

Construction Code Valid?

Occupancy Code Valid?

Remapping Process

Invalid for model

Valid for model

1.     Touchstone remaps the construction code to unknown construction (100). The construction and occupancy codes are each now valid for the model involved in the analysis.

2.     Touchstone checks whether the construction code (100) and occupancy code are compatible with each other.

3.     If the construction and occupancy codes are incompatible, Touchstone remaps the occupancy code to general commercial occupancy (311).

Valid for model

Invalid for model

1.     Touchstone remaps the occupancy code to general commercial occupancy (311). The construction and occupancy codes are each now valid for this model.

2.     Touchstone checks whether the construction code and occupancy code (311) are compatible with each other.

3.     If the construction and occupancy codes are incompatible, Touchstone remaps the construction code to unknown construction (100).

Invalid for model

Invalid for model

1.     Touchstone remaps the occupancy code to general commercial occupancy (311). The construction and occupancy codes are each now valid for this model.

2.     Touchstone checks whether the construction code and occupancy code (311) are compatible with each other.

3.     If the construction and occupancy codes are incompatible, Touchstone remaps the construction code to unknown construction (100).

Valid for model, but incompatible with occupancy code

Valid for model, but incompatible with construction code

1.     Touchstone remaps the occupancy code to general commercial occupancy (311). The construction and occupancy codes are each now valid for this model.

2.     Touchstone checks whether the construction code and occupancy code (311) are compatible with each other.

3.     If the construction and occupancy codes are incompatible, Touchstone remaps the construction code to unknown construction (100).

 

 

When there are invalid pairs, you may see the same loss numbers in a portfolio/multi-peril analysis whether you select the “Ignore” option or the “Use System Default” option. This is because, if the loss analysis includes a model for which a location’s construction/occupancy pair is valid, Touchstone does not remap the codes. (If you run a single peril, the "Use System Default" option does remap the construction/occupancy code for the peril if the code is not valid for that peril, and so it will produce loss results.)

Yes

Apply location terms for residential contracts

Specifies the behavior that you want Touchstone to perform with respect to location terms for residential contracts. Select one of the following options:

•       AIR default behavior: Touchstone applies limits first and then deductibles.

•       Deductibles before limits: Touchstone applies deductibles first and then limits.

 

For commercial contracts, Touchstone always applies deductibles first.

Yes

Flexibility

Specifies a series of flexibility-related settings for this catastrophe peril analysis.

Yes

Loss Modification Factor

Specifies whether you want to apply a loss modification factor for this catastrophe peril analysis. To apply a loss modification factor for this analysis, select the desired loss modification factor. If you do not want to apply a loss modification factor, select None.

 

•       Loss Modification is not available if you select an external model for the loss analysis.

•       If you have administrative privileges, you can click   to create or modify loss modification factor templates.

•       If you selected a loss modification factor for this catastrophe peril analysis, you can select an existing loss analysis as the baseline analysis. See the Baseline Analysis field.

Yes

Baseline Analysis

Specifies whether you want to select a baseline analysis to use when running this catastrophe peril analysis. You can select an existing loss analysis as the baseline analysis. This option provides significant savings in amount of runtime and in database space, as the loss engine does not have to run AIR's original view again. If you want to use a baseline analysis when running this analysis, select the desired baseline analysis.

Yes

Move Marine Craft Geocodes to Coast

Specifies whether you want Touchstone to move marine craft geocodes to the appropriate coast during this catastrophe peril analysis. To move marine craft geocodes to the coast during this analysis, select this check box. If you do not want Touchstone to move marine craft geocodes to the coast during this analysis, clear this check box.

Since storm surge is the main driver of loss for pleasure boats and yachts, and the location information for those craft may be inland, Touchstone can move marine craft geocodes to the coastline during a loss analysis. This option can provide a better estimate of storm surge losses when the exact location of the marine craft is not available. To determine the geocodes to be moved, Touchstone uses the median storm surge losses from AIR's Industry Exposure Database at the U.S. ZIP Code and postal code levels. If the locations are coded with construction types 265, 266, or 267, and this option is selected, the geocodes are moved regardless of the geocode match level. Touchstone does not update the exposure data with the new geocodes.

Selecting this option can result in higher or lower losses.

Yes

Non Catastrophe Peril Analysis

Specifies whether you want to run a non-catastrophe peril analysis. To run a non-catastrophe peril analysis, select this check box and then configure the associated non-catastrophe peril analysis fields as desired. If you do not want to run a non-catastrophe peril analysis, clear this check box.

To specify Touchstone behaviors for unknown PPC and fire sprinkler characteristics during this non-catastrophe peril analysis, click Advanced Settings   and specify the desired settings.

Yes

Ground Up

Specifies a series of ground up loss-related settings for this non-catastrophe peril analysis.

Yes

Use ISO Loss Cost Calculator

Specifies whether you want Touchstone to use the ISO loss cost calculator for this non-catastrophe peril analysis. You must select either this setting or the Use Custom Calculator setting.

 

If you select "Use ISO Loss Cost Calculator," you must also select the desired Peril Groups setting.

For more information related to using the ISO loss cost calculator during a non-catastrophe peril analysis, see Selecting the Method of Calculating the Ground-up Losses, Selecting the Public Protection Class, and Configuring Fire Sprinklers.

Yes

Peril Groups

Specifies which peril group or groups you want Touchstone to use during this non-catastrophe peril analysis. Select one of the following options:

•       Basic Group I: Touchstone applies ISO Basic Group I commercial property loss costs, including fire, lightning, explosion, vandalism, and sprinkler leakage.

•       Special Causes of Loss: Touchstone applies an adjusted homeowner's loss cost, including theft; weight of snow, ice, or sleet; falling objects; and water damage.

•       Both: Touchstone applies both ISO Basic Group I loss costs and special causes of loss.

 

This setting affects calculations on commercial properties only.

Yes

Use Custom Calculator

Specifies whether you want Touchstone to use a custom loss cost calculator for this non-catastrophe peril analysis. You must select either this setting or the Use ISO Loss Cost Calculator setting. If you want to use a custom loss cost calculator, select "Use Custom Calculator" and then select the desired custom calculator in the corresponding list.

 

If you have administrative privileges, you can click   to create or modify custom loss cost templates.

Yes

Loss Cost Adjustment Factor

Specifies whether you want to apply a loss cost adjustment factor for this non-catastrophe peril analysis. To apply a loss cost adjustment factor for this analysis, select the desired loss cost adjustment factor. If you do not want to apply a loss cost adjustment factor, select None.

  If you have administrative privileges, you can click   to create or modify loss cost adjustment factor templates.

Yes

If locations have existing ground up loss

Specifies how you want Touchstone to handle existing ground-up loss values during this non-catastrophe peril analysis. Select one of the following options:

•       Preserve existing values

•       Overwrite existing values

Yes

Distribute Losses to Excess Layers

Specifies whether you want Touchstone to distribute non-catastrophe primary expected losses into appropriate excess layers for this non-catastrophe peril analysis. To distribute losses to excess layers, select this check box and then configure the related settings. For detailed information about these settings, see Distributing Losses to Excess Layers. If you do not want to distribute losses to excess layers, clear this check box.

Yes

Administrators can use the Administration Console to set various defaults for use during detailed loss analyses. For more information, see Loss Defaults.

 

You can create and edit loss analysis templates to specify default settings for detailed loss analyses. When you create or edit a loss analysis template, you can specify any of the settings indicated in the table above to include these settings in a loss analysis template. For more information about loss analysis templates, see Loss Analysis Template.

 

 

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Touchstone 7.0 Updated September 03, 2020