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  1. Designed for
  2. Types of Reinsurer treaty structures that can be modeled:
    • Cat XOL (yes, here too)
    • Agg XOL
    • ILWs and Cat Bonds
  3. Catrader uses what kind of data:
    Aggregate exposure data
  4. Exposure data goes into....
    Loss files goes into....
    • Touchstone
    • Catrader
  5. Company Loss=
    Company Market Share * Industry Loss

    Company Market Share =

    Company Exposure/Industry Exposure
  6. What is a CLF?
    • –A file that contains loss estimates based on detailed location-level analyses performed by Touchstone
    • –CLFs contain detailed company loss data,
    • by event, down to the subarea level by line of business
    • –CLFs do not contain company exposure information
  7. Types of Exposure Data for Market Share Analyses:
    • Sums-Insured
    • Number of Risks
    • Premiums
    • Payroll
    • Market shares
  8. 3 Types of Industry Data embedded in Catrader:
    • Industry exposures (by area, subarea and LOB)
    • Industry losses (by event, area, subarea and LOB)
    • Industry take-up rate assumptions
  9. AIR IED
    • Industry Exposure Database
    • Essential for estimating market-wide losses
    • –Covers all modeled countries
    • –Contains all relevant property data i.e.
    • Building counts and values by construction type, occupancy type, building height and geography for all modeled LOBs
  10. Types of files used by Catrader:
    • CLF –Export file from Touchstone detailed loss analysis for use in CATRADER.
    • –Analyses will be based on cedant’s actual locations, building characteristics, and policy terms rather than on industry averages

    UNICEDE®/2 –Aggregate exposures (i.e., county or CRESTA) file for use in CATRADER
  11. Order program terms are applied:
    Ceded percentages (applies to area)

    • Occ Ret
    • Occ Limit
    • Agg Ret
    • Agg Limit

    • CoIns
    • Gross and Net Participations
  12. What is CoInsurance?
    • What the reinsurer pays.
    • Coinsurance represents the proportion of the losses to the layer that are paid by the reinsurance program
    • A value of 100% means the entire layer loss is paid out by the program
    • A value of 25% means 75% of the losses are assumed by the cedant
  13. When is the FHCF applied?
    Before any other reinsurance treaty can be applied
  14. What is Demand Surge?
    Represents the increase in building costs caused by an excess demand for resources such as materials and labor following a major catastrophic event

    Applies to the industry loss amount for a single program

    Default demand surge factors are provided by AIR, but user-specified values can be entered to override default factors
  15. What is TVaR?
    • Tail Value at Risk
    • AVERAGE of all simulated losses from a percentile on the loss distribution through the full tail of the loss distribution
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