Detailed Loss Analysis

Detailed Loss Analysis description.

Detailed Loss Analysis enables you to run a catastrophe peril analysis and a non-catastrophe peril analysis on the same exposure data that you imported for catastrophe modeling.

You can run a Detailed Loss Analysis using an AIR model.

For the Terrorism peril, you can run a Deterministic Loss Analysis with event sets that you create for any location in the world. You can also run Stochastic Detailed Loss Analyses for the Terrorism peril for locations in the United States. For all other perils, CAT analyses are stochastic analyses.

Catastrophe Peril Analysis

This probabilistic analysis uses simulated events generated by AIR to model loss estimates for your exposure data, both property data and workers' compensation data. AIR's stochastic event sets are designed to produce a complete and stable range of potential annual experience of catastrophe activity. The pattern and distribution of the simulated years approximate the pattern of historical and future years because their derivation is based on a scientific extrapolation of historical data. You must license this analysis. If you want to analyze workers' compensation data, you must also license Workers' Compensation. The AIR custom model framework enables you to import custom catalogs, hazard intensity files, damage files, and external vendor event sets using the Touchstone Model Builder standalone tool.

Deterministic Loss Analysis for Terrorism

For the Terrorism peril, you can perform deterministic loss analyses for United States or international locations. Deterministic loss analyses consider "what if" scenarios. Users can create custom event sets to test the impact of a variety of weapon types on buildings and workers. Each customized terrorist attack scenario leverages AIR's hazard propagation algorithms and vulnerability functions, as well as Touchstone's financial module. For locations in the United States, you can model both conventional and CBRN (chemical, biological, radiological, nuclear) weapons. For international locations, you can only model conventional weapons.

Non-Catastrophe Peril Analysis

This deterministic loss analysis enables you to estimate non-catastrophe ground-up losses for each location in your exposure data set and to distribute the losses into per-risk excess of loss layers. It runs against locations coded with peril "NC". You cannot license this analysis unless you also license Catastrophe Peril Analysis. You have several licensing options for the Non Catastrophe Peril Analysis.

You can configure the analysis to use any combination of licensed perils, custom perils not modeled by AIR, Demand Surge settings, and financial settings.

You can choose whether to apply reinsurance programs or facultative reinsurance.

You can run loss analyses with a variety of perspectives and save results by portfolio, contract, layer, line of business, contract UDF, location, location UDF, geography, coverage, number of claims, injury type, and MAOL. You can include by Peril and by Model columns in the Summary EP table, and you can accumulate exposures in zones. If you have licensed Non-Catastrophe Peril Analysis, you can save expected losses by contract, by contract and layer, or by contract, layer, and location.

In Portfolio Mode, you run a Detailed Loss Analysis on one or more exposure views or contracts in your project. In Underwriting Contract Mode, you run a Detailed Loss Analysis on a single contract.

Users with administrator privileges can:

• Set defaults for use during a Detailed Loss Analysis, such as configuring Demand Surge defaults. Administrators can also set default values for workers' compensation exposures.

• Create one or more loss analysis templates.