EP adjustments

Users can adjust ground-up losses for programs based on the EP curve for specific models.

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The EP adjustments are sometimes referred to as Program Loss Adjustments (PLA).

Note:

  • EP adjustments are currently supported only for subject programs.

  • EP adjustments defined on source or inuring programs are not considered during loss analysis.

To apply EP adjustments to a program:

Procedure

  1. In the Program pane, on the EP Adjustments tab, select the Enable EP Adjustments tab.
  2. Select a model in the grid.
  3. Using the information in the table below, fill out the fields in the associated pane to the right of the grid.

    By default, only 10 return periods are displayed. However, you can define up to 25 return periods. You can define EP points in this pane, and you can update them later in the Program Loss Results pane. EP adjustments are sorted in ascending order by value. If there are more than 25 adjustments, the system saves only the first 25.

  4. Repeat from step 2 to apply EP adjustments to other models.

    Field

    Description

    Adjustment Method

    Leave the default "Amount" or select "Percent".

    Return Period (yr)

    The return period for each EP point; these must be in ascending order. The smallest return period cannot be less than the RP Interval Min value and the largest return period cannot be larger than the RP Interval Max value.

    Display Value

    The exceedance probability for each EP point; only positive values are supported.

    The target curve must ascend in monotonicorder or the analysis will fail. This can happen if a return period result is less than the previous target result (at the lower end),or if a return period result is greater than the next target result (at the upper end).

    Target Curve

    Curve type for loss analysis: Aggregate (Agg EP) or Occurrence (Occ EP).

    Scaling Method

    The scaling method. The selected methodof scaling (extrapolation) will be applied to all return periodsfrom smallest to largest.

    None: A single-programanalysis fails if the adjusted EP curve is non-monotonic. In a portfolio analysis, the program is skipped.

    Scale: The monotonicityof the EP curve is restored by scaling losses at all RPs betweenthe endpoint of the modification interval where monotonicity isviolated and the endpoint of the EP curve.

    Flatten: The monotonicityof the EP curve is restored by adjusting losses at the RPs wherethe violation occurred to match the loss at the end point of theinterval.

    RP Interval Min

    If necessary, adjust the minimum interval for the return period (RP) within the EP curve. RP min mustbe greater than 0. The value cannot be the same as the RP IntervalMax value.

    RP Interval Max

    If necessary, adjust the minimum interval for the return period (RP) within the EP curve. RP min mustbe greater than 0. The value cannot be the same as the RP Interval Max value.

    Comments

    Optionally, enter a comment to clarify adjustments you have applied.

    Copy from Program

    Refer to the topic Copy EP adjustments.

    Reset

    Clear entries from a particular model.

    Reset All

    Clears entries for all models.