Structure Definition Language Elements

This topic describes simple structures using the Structure Definition Language (SDL) elements.

A simple Structure: Grouping

The following structure defines two positions, Gross and Net.

 Gross is Direct + Assumed
 Net is Gross - Ceded

The Gross position is defined by evaluating the DIrect and Assumed positions and grouping (in this case, adding) the result.

The Net position is defined by evaluating the Gross and Ceded positions and grouping (in this case subtracting or "netting out") the Ceded position from the Gross.

In this structure, the Direct, Assumed and Ceded positions are not explicitly defined,since they only appear to the right of the is keyword. Such positions are called leaf positions. In order to evaluate a defined position, such as the example's Gross position, each leaf position on which it depends must be initialized. This can occur by associating each leaf with a period loss table from another analysis.

Scaling a Position

The following structure scales up each loss in GrossLoss by 20%.

 GrossLoss is Direct + Assumed
 LoadedGrossLoss is GrossLoss * 1.2

Filtering a Position

The following structure takes a PLT representing the modeled loss of a U.S. portfolio and creates a position representing only hurricane losses to residential lines.

 FloridaHurricane is USLoss / { LOB is ‘RES’ and Peril is ‘HU’}

A Financial Contract

The following structure defines a Contract named Cat10X10 that takes the USLoss position as its subject. The Cat10X10 contract is defined elsewhere in CDL.

 Cat10x10 is Contract on USLoss

Putting it Together

The following structure shows the value of SDL:

  • The structure starts from a position representing losses to US from several perils.
  • It filters out all but the Florida Hurricane losses.
  • It applies a Florida Hurricane Cat Fund (FHCF) contract.
  • It applies a catastrophe treaty (which covers all perils and the whole US) to the US losses, net of the inuring FHCF contract.
 Cat10x10 is Contract on USNetOfFHCF
 FloridaHurricane is USLoss / {State is ‘US:FL’ and Peril is ‘HU’}
 FHCF is Contract on FloridaHurricane