Detailed Loss Analysis enables you to run a Catastrophe peril (CAT) analysis and a Non-CAT analysis, individually or at the same time, on the same exposure data that you imported for catastrophe modeling. If you run the analyses at the same time, the system combines the losses in the results pane.

You can run a Detailed Loss Analysis using an AIR model or a non-AIR custom model.

For the Terrorism peril, you can run a Deterministic Loss Analysis with event sets that you create for any location in the world. You can also run Stochastic Detailed Loss analyses for Terrorism for locations in the United States. For all other perils, CAT analyses are stochastic analyses.

•       Catastrophe Peril Analysis: This probabilistic analysis uses simulated events generated by AIR to model loss estimates for your exposure data, both property data and workers' compensation data. AIR's stochastic event sets are designed to produce a complete and stable range of potential annual experience of catastrophe activity. The pattern and distribution of the simulated years approximate the pattern of historical and future years because their derivation is based on a scientific extrapolation of historical data. You must license this analysis and, if you want to analyze workers' compensation data, you must also license Workers' Compensation. The AIR custom model framework enables you to import custom catalogs, hazard intensity files, damage files, and external vendor event sets using the AIR Model Builder standalone tool.

•       Deterministic Loss Analysis for Terrorism: For the Terrorism peril, you can perform deterministic loss analyses for U.S. or international locations. Deterministic loss analyses consider "what if" scenarios. Users can create custom event sets to test the impact of a variety of weapon types on buildings and workers. Each customized terrorist attack scenario leverages AIR’s hazard propagation algorithms and vulnerability functions, as well as Touchstone’s financial module. For locations in the United States, both conventional and CBRN (chemical, biological, radiological, nuclear) weapons can be modeled. For international locations, only conventional weapons can be modeled.

•       Non-Catastrophe Peril Analysis: This deterministic analysis enables you to estimate non-catastrophe ground-up losses for each location in your exposure data set, and to distribute the losses into per-risk excess of loss layers. It runs against locations coded with peril "NC". You cannot license this analysis unless you also license Catastrophe Peril Analysis. You have several licensing options for the Non Catastrophe Peril Analysis.

You can configure the analysis to use any combination of licensed perils, custom perils not modeled by AIR, Demand Surge settings, and financial settings such as correlation, disaggregation, and average properties.

You can choose whether to apply reinsurance programs or facultative reinsurance.

You can run loss analyses with a variety of perspectives and save results by portfolio, contract, layer, line of business, contract UDF, location, location UDF, geography, coverage, number of claims, injury type, and MAOL. You can include "by Peril" and "by Model" columns in the Summary EP table, and you can accumulate exposures in zones. If you have licensed Non-Catastrophe Peril Analysis, you can save expected losses by contract, by contract and layer, or by contract, layer, and location.

In Portfolio Mode, you run a Detailed Loss Analysis on one or more exposure views or contracts in your project. In Underwriting Contract Mode, you run a Detailed Loss Analysis on a single contract.

Users with administrator privileges can:

•       Set defaults for use during a Detailed Loss Analysis, such as configuring Demand Surge defaults, setting default values for workers’ compensation exposures, and setting default values for non catastrophe peril analyses; refer to the Loss Defaults topic.

•       Establish one or more loss analysis templates; refer to the topic Loss Analysis Template.