Terminology

A brief glossary and description of some terms is provided below. Further detail can be found from a paper by the Casualty Actuarial Society here

• ELT : a table with event details from the RMS catastrophe model.

• YLT : a table with event losses by year and event

• OEP : probability of a loss of a given size or larger in a year

• AEP : probability of total losses in a year of a given size or larger.

• Primary Uncertainty : whether an event happens or not

• Secondary Uncertainty : given an event happens the uncertainty in the size of the loss