Known Issue 442
Ground-up losses can vary for combined peril exposures when Loss Modification Factor (LMF) rules have different factors across overlapping regions or peril combinations.
Issue ID | 442 |
Summary | Ground-up losses can vary for combined peril exposures when Loss Modification Factor (LMF) rules have different factors across overlapping regions or peril combinations. |
Description | When LMF rule parameters are applied to geographic regions with overlapping administrative boundaries in the template (such as a county within a state), it can result in incorrect calculation of modified ground-up losses. |
Resolved in | Touchstone 2025 (13.0) |
Date posted | 4/16/2025 |
Software versions affected | 12.0, 11.5, 11.0 |
Feature set | Detailed loss |
Models | Varies |
Potential for loss numbers impact | Yes |
Workaround | The user should ensure that admin boundaries do not
overlap. Instead of applying an LMF rule at the state level, it is
better to list all counties within that state individually,
assigning the same LMF factor for a specific peril where
applicable.
There are two approaches to handle variations:
|
Verisk bug | 804307 |