Loss Group Analysis

A Loss Group analysis enables you to combine two or more sets of loss results from different analyses into a single loss view, or group, which is then available for use as input to subsequent processes or analyses. You can also then associate a reinsurance program with the loss group and run a reinsurance program analysis. You can create a hierarchy of groups by combining individual results or grouped results.

You can group loss results to which a reinsurance program was applied along with loss results to which a reinsurance program was not applied, regardless of the original financial perspectives selected in the original loss analyses.

Inputs to the analysis can be the results from a Detailed Loss Analysis or Loss Group analysis, from the same project. The results may be on different databases, but must be on the same server. In addition, all the loss results must be for the same number of simulated years, and, when you combine two or more loss results for the same model, the model versions must be compatible.

If the input results contain a mix of high- and low-resolution results, Loss Group analysis combines them at the lowest common resolution. The system verifies that the loss results can be consolidated. If the currencies of the underlying analyses are not the same, Loss Group converts them to the currency you select in the Analysis Management pane.

If you have configured your input analyses to include peril and model breakdowns, the Save by Peril and Save by Model options in the Additional Details pane enable you to view losses by peril, by model, or by both in the grouped EP Summary table.

Loss Group generates new event loss detail tables for each distinct event with the losses added for all inputs for all common financial perspectives. It calculates new Annual EPTo generate the exceedance probability (EP) curve for each policy, the engine sorts the losses in each row from largest to smallest. The largest loss can be assigned an EP of 0.01% (1/10,000), meaning that it is equaled or surpassed only once in the 10,000 simulation years. The second largest loss is equaled or surpassed twice, corresponding to an EP of 2 in 10,000 years, or 0.02%. The 20th, 40th, and 100th largest losses have EPs of 0.2%, 0.4%, and 1%, which correspond to the 500-, 250-, and 100-year return periods, respectively. By assigning an EP to each loss, the engine can derive a full EP curve. and Summary EP tables for the group, and the average annual loss for the group.

You can run a Loss Group analysis on detailed loss analyses that were run with zones.

Related topics

•       Configuring and Running a Loss Group Analysis

•       Detailed Loss Analysis settings