Financial Module Flashcards
Estimate of the damage caused by an event
Damage ratio
Damage ratio applied to value of a structure
Ground up loss
Indicates how much damage there is to the building relative to its total replacement value
Damage ratio
Mean damage based on intensity and duration
Damage function
Secondary uncertainty distributions in Touchstone are
Discrete
Secondary uncertainty varies by
Peril
Facultative reinsurance is applied ___ in Touchstone
Probabilistically
Risk based treaty reinsurance is applied _____
Probabilistically or deterministically depending on inuring order
Cat treaty reinsurance is applied ____
Deterministically
We can combine loss distributions by
Simulation
Analytical Convolution
Numerical Convolution
Which method is used in Touchstone?
Numerical Convolution
Output from engineering module or vulnerability
Mean damage ratio
Process to distribute policy losses to affected locations
Back allocation
How are location level losses calculated with back allocation
Proportionally
Touchstone always includes secondary uncertainty within the financial module regardless of whether the uncertainty box is checked in the analysis options? T or F
True
These are meant to give a basic understanding of how much uncertainty that is around a given event loss or given loss for certain return period or EP
Uncertainty percentile or loss percentile
If not specified by the user, the financial model assumes zero correlation? T or F
True
Alternative way of generating an EP Curve
EP curve with secondary uncertainty EPSU
Regular EP curve already includes secondary uncertainty
True
what is the difference between EP curve and EP curve with secondary uncertainty?
Standard EP curve only uses the mean losses in the generation of EP curve, but EP curve with secondary uncertainty uses the entire distribution
