Overview

In the reinsurance industry an exposure is generally understood as an entity (such as a risk item or location) that is vulnerable to catastrophe risk and may produce a financial loss. An exposure is defined by three types of data: location data, risk item data, and financial terms. Exposure data is stored in an Exposure Data Module (EDM).

In the Intelligent Risk Platform, the term exposure is usually used to identify collections of locations or exposure data (e.g. accounts, portfolios, and aggregate portfolios) that can be analyzed ("modeled") using a Moody's RMS catastrophe model. Modeled exposures return analysis results.

In some APIs and API operations the term exposure is also used to mean an EDM (Exposure Data Module). The Exposure Data Module (EDM) is a database structure that stores the detailed exposure, hazard, and financial information (i.e. risk data) for use in catastrophe modeling.

Portfolios

A portfolio is a collection of accounts. Each account may represent multiple locations covered by a primary insurance policy. Locations, policies, accounts, and portfolios may be covered by reinsurance treaties or facultative cessions.

The Intelligence Risk Platform supports catastrophe modeling of portfolios. A portfolio-level analysis models a portfolio of accounts as a unit and returns portfolio-level results.

A portfolio resource may be linked to multiple account, location, policy, and treaty resources.

Portfolio
├── Account ...
└── (Treaty)

Accounts

An account defines a contract between a buyer (the cedant) and a seller (the underwriter) that transfers risk from the contract buyer to the contract seller in exchange for some premium. The account links those parties to policies that define the terms of their contract, treaties, and to one or more locations that represent exposures insured by those policies.

An account may or may not be the child of a portfolio.

An account resource is defined by a branch, cedant, producer, underwriter, and policy.

Account
├── Location ...
├── Branch
├── Cedant
├── Producer
├── Underwriter
├── (Treaty)
└── Policy
    └── Line Of Business

Every account is defined by a branch, cedant, and producer.

• A branch is an office that conducts business operations at a specific location. A branch may be applied to an account. This resource has no definite significance in the reinsurance program. Tenants may use this resource to define account metadata.
• A cedant is a risk holding party (insurer/reinsurer) that transfers a portion of its risk to another risk holding party (reinsurer/retrocessonaire).
• A producer is an agent or brokerage firm that produces a policy. A producer may be attached to an account or treaty. This resource has no definite significance in the reinsurance program. Tenants may use this resource to define account and treaty metadata.

Treaties may be applied to locations, accounts, policies, or portfolios.

To learn more about the Account resource, see the Risk Data API reference documentation.

Location

A location is a building, property, business, or other asset that may be damaged by events. Every location is tied to a specific account. To learn more about the Location resource and Location API services, see the Location API reference documentation.

Every location is attached to an account. Locations can be attached to portfolios, if the parent account is attached to the portfolio. .

Account
└── Location ...
    └── (Treaty)

Treaties may be applied to locations, accounts, policies, or portfolios.

Policy

A policy is an insurance contract between a buyer (the cedant) and a seller (the underwriter) that transfers risk in exchange for some premium. This insurance contract applies to an account for a specific peril. The policy covers all locations assigned to that account.

A policy resource may be defined by PolicyConditions, PolicyCoverage, and ReinsuranceCessation objects.

Account
└── Policy
    ├── Policy Condition ...
    ├── Policy Covrage ...
    └── Policy Cession ...

A policy condition identifies special conditions that affect the way a policy applies to a location. The policy condition may be used to implement policy restrictions or sublimits at a particular location.

A policy coverage entry defines the scope of liability for losses of a particular type at the policy-level. Multiple coverage entries may be defined for the same policy.

A policy cession (reinsurance cession) is a contract or agreement between two insurers that involves the purchase of insurance by an insurance (ceding) company from another insurance (reinsurance) company for the purpose of spreading risk and reducing the loss from a catastrophe event.

Treaties

A treaty defines a reinsurance contract between an underwriter and a primary insurer that applies to a collection of related exposures. Treaties may be applied to accounts, locations, policies, and portfolios.

Under the terms of the treaty, the primary insurer (for example, a cedant) transfers risk to the underwriter in exchange for a premium and the reinsurer assumes financial responsibility for that risk.

The Treaty object may be defined by the Cedant, LineOfBusiness, and Producer objects.

Treaty
├── Cedant
├── Line Of Business
└── Producer

Aggregate Portfolios

An aggregate portfolio is a collection of exposure data (total insured value limits) that have been aggregated by geographic unit (e.g. CRESTA) or by line of business (e.g. Commercial).

ALM models work in tandem with ALM profiles to model aggregate data.

ALM profiles calculate the frequency, severity, and associated losses of catastrophic events for an aggregate portfolio. Each ALM profile is a pre-compiled database of loss ratio estimates and their associated variances for a specific peril for one line of business at a certain geographic resolution. Each profile incorporates a set of assumptions regarding policy structures, geographic distributions, construction inventories, and insurance coverage type. ALM profiles are pre-seeded. You cannot create new profiles or edit existing profiles.

Aggregate portfolios can be modeled using ALM catastrophe models. ALM modeling enables underwriters to perform portfolio management, treaty reinsurance underwriting, and other risk management processes when detailed exposure data is not available.

An aggregate portfolio is defined by a cedant, peril, and other attributes.

Aggregate Portfolio
├── aggregated exposure data
└── Cedant

Exposure Sets

An exposure set is a securable that controls access rights to a collection of exposure, hazard, and financial information and analysis based on that data. The creator of the exposure set is the owner of that exposure set and may share access to child data (exposures, exposure variations, and exposure analysis) to user groups.