Configuring and Running a Marginal Impact Analysis in Portfolio Mode

Before You Begin

A Marginal Impact Analysis enables you to view the effect that a specific loss results set (the target or new portfolio) has on another loss results set (the reference portfolio). You can run a Marginal Impact Analysis in Portfolio Mode or in Underwriting Contract Mode. This topic describes how to run the analysis in Portfolio Mode.

In Portfolio Mode, you choose two sets of Detailed Loss Analysis or Loss Group Analysis results for a Marginal Impact Analysis, as follows:

  • One set of analysis results serves as the reference portfolio.

  • A target set of analysis results serves as the new portfolio.

During a Marginal Impact Analysis, Touchstone combines the results of the target analysis with the reference set of analysis results.

Procedure

To configure and run a Marginal Impact Analysis in Portfolio Mode:

  1. Generate Detailed Loss Analysis or Loss Group Analysis results, for example, by running two detailed loss analyses, in any order.

    You do not have to run the analyses with the same settings. You can run these analyses in one or more projects. That is, you can run a Marginal Impact Analysis using loss results from multiple projects.

  2. Open the project that contains the results set that you want to use as the target (new) analysis results.
  3. In the navigation pane, select Results and then select Loss Analyses, Loss Groups, or All Results.
  4. In the results grid, highlight the target analysis results.
  5. Under Run Analysis, select Marginal Impact.

    The Marginal Impact Analysis pane opens. The set of results selected in the preceding step appear in the Analysis Target field.

  6. Under Marginal Impact Diagnostics, select Select Base Loss Result, then:
    1. Select or clear Exclude contracts based on Expiring Contract ID.

      Touchstone will remove losses for these contracts from the reference portfolio. You can add or modify existing contract names in the text box.

    2. Specify a Window value to generate averaged EP loss results.

      Defining a window is the user's choice. The default is "0", meaning that Marginal Impact will not average the losses.

    3. Select the reference analysis results with which you want to combine the target analysis results set that you selected in step 4.

      This set of reference analysis results will appear as the "Reference Portfolio" in the Marginal Impact Results table.

  7. Select Configure Groups to associate perils with an Admin Boundary that is defined in Touchstone. Then, optionally, select a saved Admin Boundary template with its associated perils to use in this analysis, or specify a new combination.

    You can use a new selection for this analysis and save it as a template for later use.

  8. Select Analysis Management to configure analysis-specific functions.
  9. In the Analysis Name field, leave the default name or enter a unique, alphanumeric identifier.
    Note:

    Entering some combination of the exposure view name along with the analysis type enables you to find result sets quickly in the Activity Monitor.

  10. Click Run.

    Touchstone adds the analysis to the Activity Monitor queue for processing when the required system resources are available.

    Note:

    The analysis type in the Activity Monitor is "Impact Analysis," while it is "Marginal and portfolio impact analysis" in the results grid

  11. To view the analysis results in the results grid for your project, highlight the analysis for which you want to view results (make sure the activity status is "Completed"), and then click the hyperlinked name of the Marginal Impact Analysis.