Application of country-specific demand surge factor

The Touchstone public API now supports a country-specific loss inflation model that is applied for the whole year instead of per event.

This enhancement provides an enhanced demand surge solution with regional variability. It also makes it easier to adjust for changes in economic or market conditions and for unusual situations such as government intervention, infrastructure damage, or loss inflation caused by pressure to settle claims. The new demand surge update supports the following European models:

  • Verisk Extratropical Cyclone Model for Europe

  • Verisk Severe Thunderstorm Model for Europe

  • Verisk Earthquake Model for the Pan-European Region

  • Verisk Inland Flood Model for Central Europe

  • Verisk Inland Flood Model for the UK and the Republic of Ireland
  • Verisk Inland Flood Model for Italy (M96, added in Touchstone v13.x)
Note: These demand surge updates do not apply to the following LOBs: auto, forestry, offshore, workers' compensation, and MPCI.

Apply demand surge by country

We implemented a country-specific option in the DemandSurgeRegionOption class that you can include in each loss analysis request. Use the new methodology to more accurately code the location-level terms by perils and sub-perils. The event sets are specific to regions. You must select an appropriate region for the custom event set for which you want to calculate the demand surge.

Table 1. Updated AIR.Services.LossAnalysis.Data namespace

Object

Type

Description

UseCountrySpecific

Boolean

  • True

  • False (Default)

(Optional) Indicates whether you want to apply demand surge factor for a specific country