Modifying Perils in a Contract

Modifying perils in contracts.

The Modify Perils feature enables you to define rules to add and remove perils in an exposure view or in a contract. For example, you may want to remove the Storm Surge peril from imported exposure data that was coded for all perils (PAL). In Touchstone the Storm Surge peril is automatically coded at 100%. If you want to apply a different percent, such as 5% or 10%, you can remove the Storm Surge peril from the exposure data and then configure the loss analysis to use your required surge percent during the loss analysis. Also, you may want to add perils after a model is updated. You can save a copy of the modified contract or you can overwrite it. Changes apply to all locations, layers, and sublimits in the contract.

Procedure

To modify perils in a contract:

  1. Open a project.
  2. In the navigation pane, in the Project Data area, click All Exposure Views.
  3. Open the exposure view containing the contract whose perils you want to modify.
  4. In the Exposure Summary Dashboard, click Contract List.
  5. In the Contract Summary grid, click in the first column to select the contract that you want to modify, without opening the contract.
  6. Click (Edit) and then select Modify Perils.

    The Modify Perils dialog box opens, displaying the default view of the Modify Perils rule. The Where you have list on the left displays the perils grouped by peril type. The list to the right of the Add/Remove toggle button, displays all Touchstone perils.

  7. To add a peril to the contract
    1. In the Where you have list, select a peril that you want to use as a reference. That is, look for an existing peril that has geographical distribution and financial terms that are similar to the peril you want to add.

      Touchstone will not change the existing peril code. You are simply telling Touchstone to add a new peril wherever it finds the selected peril in the exposure data.

      A reinsurer gets exposure data coded for Fire Following and Earthquake Shake. AIR has added a sub-peril as part of a model update, and you want to make sure that your exposure data contains that new peril—for example, the Tsunami sub-peril was added for a region and you want to add it anywhere you already have Earthquake Shake.

    2. With Add still selected, in the rightmost list, select the peril you want to add.
  8. To add another rule, click .
  9. To remove a peril from a contract:
    1. In the Where you have list, select the peril that you want to remove.
    2. Click Add/Remove until Remove is displayed.
    3. In the rightmost list, select the peril to remove, the peril that you specified in step 9a.

      The peril you want to remove must appear in both lists.

  10. Choose whether to create a new contract or overwrite the existing contract.

    • Select Create New if you want to create a new contract and then enter a unique contract ID. This leaves your original contract unchanged; this is a good choice in case you change your mind after modifying perils.

    • Leave the default, Overwrite, if you want to overwrite the existing contract.

      Warning:

      You cannot undo the Overwrite operation.

      Note:

      Whether you create a new contract or overwrite an existing contract, Touchstone does not automatically generate an exposure summary. The exposure view associated with the modified contract will display an alert symbol , indicating that contract changes have affected the exposure view. Hovering on the alert triangle will display this message: ‘The exposure view summary is out of sync with the associated exposure data. Regenerate the exposure view summary to resolve this.’ To regenerate the exposure view summary, highlight the exposure view and then click Run Summary.

  11. Click Save.

    The name of the activity in the Activity Monitor is Modify Exposure.