Known Issue 141

Italy inland flood ILFs included in the 11.0 release are understated. The main impact is to the Residential Contents line of business.

Issue ID	141
Summary	Italy inland flood ILFs included in the 11.0 release are understated. The main impact is to the Residential Contents line of business.
Description	A few late stage updates to the new Italy Inland flood model were not properly reflected in the industry loss files (ILFs) included in the Touchstone Re 2023 (11.0) release. At the overall industry insured loss level, losses are currently overstated by about 2%. The most impacted line of business is the Residential Contents line of business which is overstated on the order of 60%, contributing to an overall 20% overstatement of Residential Building + Contents losses. Commercial, Industrial and Auto lines of business are overstated between 1-2%.
Resolved in	Touchstone Re 11.5
Date posted	10/11/2023
Software versions affected	11.0
Feature set	Loss analysis
Models	Verisk Inland Flood Model for Italy
Potential for loss numbers impact	Yes
Workaround	Until updated ILF's are released, when analyzing Italy flood sums insured apply an exposure adjustment factor of 1.6 for the Residential Contents line of business in Touchstone Re exposure sets. When generating industry insured loss estimates for flood, factor up user-specified market shares percentages for Residential Contents by 60%.