Disaggregation

When enabled, the Disaggregation Financial Settings parameter distributes aggregate (coarse resolution) location data down to a finer resolution, to locations where exposures are likely to be located based on lines of business represented in AIR's Industry Exposure Database. This process enables Touchstone to apply policy terms appropriately across an entire (distributed) region rather than applying them only across the geographic centroid of the region; this generates more accurate loss results for risk locations with poor quality data because it avoids analysis of aggregate exposures at a single-point location.

For complete information about exposure disaggregation, see the Exposure Disaggregation and Average Properties in Touchstone guide on the AIR Client Portal. This guide provides information about the countries that support disaggregation, with detailed information about the applicable models and resolutions for each country.

When you have aggregate exposure data, AIR recommends that you always run your analysis with Disaggregation set to On because it provides more accurate loss results.

In Touchstone, disaggregation is an analysis option. You can choose whether or not to apply disaggregation during an analysis. The default is On.

During a Detailed Loss Analysis, you can enable or disable the disaggregation setting only for the United States, Central America, Mexico, Japan, and China, and Europe. For example, if the exposure data includes Canadian CRESTA or FSA centroid locations and you select Off, Touchstone will ignore the Off setting and will automatically disaggregate the data.

During a Geospatial Analysis, Touchstone does not ignore the disaggregation setting that you select. If you set Disaggregation to Off, there is no automatic disaggregation for any countries.

Weighted Centroids by Country

Touchstone uses weighted centroids for financial settings.

There are three types of weight categorizations for centroids within a specific region—Exposure, Geographic, and Population. As AIR continues to develop detailed, high-resolution Industry Exposure Databases, exposure-weighted centroids will become standard because they represent where the risks actually reside.

For detailed information about the weighted centroid for each country as defined by AIR's Industry Exposure Database, see the Exposure Disaggregation and Average Properties in Touchstone guide on AIR's AIR Client Portal.