Guideline 7 explains the process to identify the risks affected by the liability man-made cat scenario. In section 1.15 (d) the guideline 7 reads : “The final resulting n_i values should be considered as individual claims from a single event, each associated with the risk from which they have been derived.“ Does this mean, that for each liability risk group i, only one single event is causing n_i claims, or that one event per claim, i.e. n_i events, are causing the loss in liability risk group i?
The first interpretation begs the question with what risk the event is associated, as there are several risks and only one event.