Absolute Damage

Introduction

The absolute damage option allows model providers to include absolute damage amounts rather than damage factors in the damage bin dictionary.

The damage bin dictionary supports the column damage_type which can be used to specify whether a given row corresponds to a damage factor or absolute damage.

By default the damage_type=0, in this case if the damage factors are less than or equal to 1 in the damage bin dictionary, the factor will be applied as normal during the loss calculation, by applying the sampled damage factor to the TIV to give a simulated loss; but when the factor is greater than 1, the TIV is not used in the calculation at all, but rather the absolute damage is applied as the loss.

Example

Example 1 (damage factor): if the sampled damage factor is 0.6 and the TIV is 100,000, the sampled loss will be 60,000

Example 2 (absolute damage): if the sampled damage factor is 500 and the TIV is 100,000, the sampled loss will be 500

A damage_type=1 corresponds to the damage bin being treated as a damage factor.

A damage_type=2 corresponds to the damage bin being treated as an absolute damage. | An example toy model with the absolute damage factor option is availible to use from here.

A more involved toy model incorporating the use of the damage_type in the damage bin dictionary in the context of business interruption can seen here <https://github.com/OasisLMF/OasisModels/tree/bi-test_model/PiWindBI>.