When you configure a Detailed Loss Analysis (catastrophe peril, non-catastrophe peril, or CAT XOL) or a Geospatial Analysis, you can associate each analysis target with a reinsurance program in the Apply Reinsurance Programs pane. Touchstone applies the terms of the treaties in the reinsurance programs to the analysis results.

Before applying treaty terms to the results for an analysis target, Touchstone checks whether:

•       The lines of business (LOBs) in the reinsurance program treaties match the LOBs in the analysis target.

•       The Surplus Share treaty IDs in the program match the Surplus Share treaty IDs in the analysis target.

•       There is overlap between the inception and expiration dates in the reinsurance program and the analysis target.

If a treaty fails the validation check, Touchstone displays a warning message below the Apply Reinsurance Programs grid and disregards the treaty during the analysis. To address the message, you can to modify an existing reinsurance program or create a new one.

Touchstone applies Per-Risk Excess of Loss treaties and layers as follows:

•       For a catastrophe peril analysis, Touchstone applies the treaty or layer to a location only if the location is coded for a peril covered by the treaty or layer.

•       For a non-catastrophe peril analysis, Touchstone applies the treaty or layer to a location only if the location is coded for the non-catastrophe (NC) peril and the non-catastrophe peril is covered by the treaty or layer.

•       If you selected the Distribute Losses to Excess Layers option, Touchstone includes only the Per-Risk Excess of Loss treaties for locations coded for the non-catastrophe peril.

Usage notes

•       When you create a reinsurance program that is associated with an exposure view, Touchstone validates the LOBs and Surplus Share treaty IDs and displays them in the list of available LOBs and treaty IDs. If you create a program and do not associate it with an exposure view, and you manually enter LOBs and treaty IDs, Touchstone cannot validate the information; therefore, you will have to check for typos yourself.

•       You can configure the Applies to LOB field by accessing reinsurance programs via the Reinsurance optionTerms (Reinsurance Programs) in the New Detailed Loss Analysis pane—Reinsurance > Apply Reinsurance Programs pane > open program > Terms tab > scroll to Applies to LOB field. Touchstone validates LOBs that exist in the target exposure views selected for analysis. LOBs that do not exist in the target exposure views do not appear in the user interface (in the Applies to LOB field). When LOBs in the Applies to LOB field match LOBs in the target exposure views, the LOBs are listed in the Applies to LOB field on the Terms tab.

Related topics

•       Creating a reinsurance program

•       Applying reinsurance programs

•       Reinsurance (for information about managing reinsurance programs)