/categories/MultiGAAP/ Recent content in MultiGAAP on Hugo -- gohugo.io /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/create_and_define_portfolio_prog/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/create_and_define_portfolio_prog/ The Multi GAAP module consists of several components. First there is a level of business called Portfolio Program. With the Portfolio Program you can structure your business and group it into portfolios. This is done by assigning individual sections of the assumed business to a hierarchical structure of the Portfolio Program. The hierarchical structure of the Portfolio Program is built using the section structuring facility. The reason for using the Portfolio Program is to: /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates_on_iab/period_estimates/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates_on_iab/period_estimates/ You can create period estimations on individual Assumed Business by using the Multi GAAP functionality. In SICS, you access the functionality by clicking the ES-button in the Business Properties window. When you click the ES-button, SICS opens the Underwriters Estimates window. On this window you see the Period Estimate tab, which enables you to maintain your estimations. (You specify the estimation items that appear on the Period Estimation tab on the Multi GAAP tab in the system parameters-System Administration folder/System Parameter Maintenance) For each of the Estimation Items estimates are calculated from rules that are specified with the Estimation Items. /sicsdocs/user_guide/pc/maintain_mg_estimates/retrocession/period_estimates_on_prop_occ/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/retrocession/period_estimates_on_prop_occ/ How the Period Estimates on Proportional OCCs are populated, depends on Multi GAAP system parameter Period Estimation Calculation on Prop Outward Contracts A: When system parameter Period Estimation Calculation on Prop Outward Contracts is cleared The Period Estimates on a Proportional OCC are fed by the estimations of the protected Assumed Business. You get an overview of these estimations on the Period Estimates tab of the Proportional OCC. (Click the button on the Navigation bar of the OCC to access the Underwriters Estimates window. /sicsdocs/user_guide/pc/maintain_mg_estimates/retrocession/introduction/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/retrocession/introduction/ The estimation bookings made on the Assumed Business are automatically transferred to the OCC as Original bookings. This is normal SICS functionality. In addition to this you can make adjustments to the estimations that come from the Assumed Business. These adjustments can be made at the OCC and at the Retrocessionaire level. This works only for Proportional OCC’s. Non-Proportional OCC’s has no direct connection to Assumed Business. Consequently there are no estimation bookings that are transferred automatically to the Non-Proportional OCC’s. /sicsdocs/user_guide/pc/mg_acc/introduction/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/mg_acc/introduction/ The estimations at the portfolio and business level are usually booked when preparing the book closing. An automatic calculation order called “Multi GAAP Accounting Order” does the booking of the estimates. The order does two things: Books the estimates either on the business or portfolio ledger depending on where the estimates are entered. The booked estimates are also created as status As original on the ledger of an OCC if the business or portfolio program is connected to a Proportional OCC. /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/assign_assumed_bus_to_portfolio_prog/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/assign_assumed_bus_to_portfolio_prog/ You can assign sections of an Assumed Business to the sections of the Portfolio Program in two different ways: Starting from a Portfolio Program, you can link one or several Assumed Businesses, alternatively one or more sections of one Assumed Business to the active section of a Portfolio Program. One section of an Assumed Business can only be linked to one section of a Portfolio Program. Starting from an Assumed Business, you can link the active section to a section of a Portfolio Program. /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates_on_iab/calc_period_estimates/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates_on_iab/calc_period_estimates/ The Period Estimates are calculated automatically when a new currency is added. The system then applies the Calculation Rules to all Estimation Items and displays the resulting values. Entries marked as overwritten are not calculated. If the calculated Period Estimates are ok (which should usually be the case) you do not have to change the calculation at all. If you change some of the values it might be necessary to recalculate the Period Estimates again. /sicsdocs/user_guide/pc/mg_acc/create_manual_bookings_in_relation_to_multi_gaap/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/mg_acc/create_manual_bookings_in_relation_to_multi_gaap/ Manual booking with regard to Multi GAAP is different from ordinary manual bookings because it has to take care of the different GAAP’s. How a booking is done depends on the figure to be booked. If the entry code and the amount are the same for all GAAP’s (which should be the case for all liquid bookings) only one booking line in the technical worksheet is needed: The booking period can be adjusted according to the GAAP. /sicsdocs/user_guide/pc/maintain_mg_estimates/retrocession/period_estimates_on_non_prop_occ/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/retrocession/period_estimates_on_non_prop_occ/ With respect to premiums, deductions, or any other items, a Non-Proportional OCC has no connection to Assumed Business. Estimations therefore cannot be driven from the estimations of any Assumed Business. To enter estimations on a Non-Proportional OCC follow the same procedures as for an Assumed Business. Note that it is not possible to attach an OCC to a Portfolio Program and therefore no default Period Estimates can be used to calculate the estimates. /sicsdocs/user_guide/pc/maintain_mg_estimates/retrocession/period_estimates_on_prop_treaty_retro/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/retrocession/period_estimates_on_prop_treaty_retro/ The Period Estimate functionality on Proportional Treaty Retrocessionaires depends on Multi GAAP system parameter Period Estimation Calculation on Prop Outward Contracts A: When system parameter Period Estimation Calculation on Prop Outward Contracts is cleared The Period Estimate tab on a Proportional treaty Retrocessionaire looks and works much like the one on a Proportional OCC. The only difference is that the estimates are collected from the business ledger of the Retrocessionaire. Figures marked ‘As Booking’ are shown on this tab. /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates_on_iab/advanced_handling_of_period_estimates/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates_on_iab/advanced_handling_of_period_estimates/ When selecting the estimation currencies you usually select the main currency from your base parameters. In most cases this is the EPI. But you also have to be aware of the (future) accounted figures. There is no currency conversion on the Multi GAAP Accounting order. But it is possible to select a check box on the order screen that enables the order to calculate accruals for all currencies. This means that if a currency does not have any estimated values, the calculated accruals for a non-estimated currency will be equal to the technical bookings for that currency. /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/remove_assumed_bus_from_portfolio_prog/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/remove_assumed_bus_from_portfolio_prog/ You can remove Assumed Business from the Attached Business window on a Portfolio program. Select the Assumed Business section from the Attached Business list. Select Delete from the pop-up menu. This will not have any automatic effect on the estimates or bookings of the Assumed Business or the Portfolio Program. When adding or removing business linked to a Portfolio Program you need to refresh the estimates. To update the estimates of the Portfolio Program sections go to the Period Estimates tab on the Underwriters Estimates window and switch to edit mode. /sicsdocs/user_guide/pc/mg_acc/run_the_multi_gaap_acc_order/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/mg_acc/run_the_multi_gaap_acc_order/ A calculation order called “Multi GAAP Accounting order” does the booking of the estimates figures. The order does two things: Books the estimates either on the business or portfolio ledger depending on where the estimates are entered. The estimate is always booked with the Estimate indicator set. The booked estimates are also created As original on the ledger of an OCC if the business or portfolio program is connected to a Proportional OCC /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/attach_portfolio_prog_to_protection_assignment/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/attach_portfolio_prog_to_protection_assignment/ SICS allows you to use the Protection Assignment function also for Portfolio Programs. You do this in the same way as when Assumed Business is linked to a Protection Assignment. The Portfolio Program window has a PP-button for Proportional Protection Assignment. By clicking this button on the Portfolio Program, you can assign Outwards Cedent Contracts or Own Retention in the same way as for ordinary Assumed Businesses. For more information, refer to the SICS User Guide. /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates_on_iab/create_update_period_estimates_automatically/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates_on_iab/create_update_period_estimates_automatically/ In the Account orders on the SICS desktop, there is an order with the type Estimation Calculation called Multi GAAP Recalculation order. The purpose of this order is to update the estimates that can be found on the Period Estimates tab on Assumed Business, Portfolio Program, OCC and Retrocessionaire’s. The order can also create new Period Estimates on Assumed Businesses, OCCs and Retrocessionaires. This order is very useful if the estimate figures on the Period Estimates tab are coming from a calculation rule using, for example, the EPI as the basis for the calculation. /sicsdocs/user_guide/pc/maintain_mg_estimates/retrocession/period_estimates_on_non_prop_treaty_retro/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/retrocession/period_estimates_on_non_prop_treaty_retro/ The Period Estimate tab on a Non-Proportional treaty Retrocessionaire looks and works much like the one on a Non-Proportional OCC. The estimated amounts are either calculated as the Period Estimate on the OCC multiplied with the Retrocessionaire’s share, or calculated directly on the Retrocessionaire. The method can be specified for each Estimated Item. If the flag “Calculation on Retrocessionaire” is selected in the Period Estimation Rule, the item is calculated directly on the Retrocessionaire. /sicsdocs/user_guide/pc/mg_acc/run_the_multi_gaap_retro_order/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/mg_acc/run_the_multi_gaap_retro_order/ The purpose of this order is to calculate the difference between the booked estimated values and the accounted figures. The calculated difference is booked as accrual. If the accruals of the Assumed side is not transferred to the retrocession side by the Retrocession Estimation Calculation order the Multi GAAP Retrocession order must be run in order to get accruals calculated. The Multi GAAP Retrocession order will perform the following: It books the estimates in the Period Estimates tab on the Non-Proportional Retrocessionaire’s “as Booking”. /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/navigate_in_portfolio_prog_hierarchy/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/navigate_in_portfolio_prog_hierarchy/ The Structure tab of the Portfolio Program window gives you an overview of the existing sections for the selected insured period. You can navigate from section to section by double-clicking in the selected line. If you want to see the attached business, you must click the Attached Business button. You can also navigate from the Assumed Business to the Portfolio Program. Click the Portfolio Program button in the Navigation bar of an Assumed Business and the Portfolio Program window opens. /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates_on_iab/periodic_function/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates_on_iab/periodic_function/ Estimation Complete Mass Update # When closing of specifically selected Estimation Items has been set in the Multi GAAP system parameters, The Periodic Function, Estimation Complete Mass Update functionality can be used to perform the closing. To get access to the Estimation Complete Mass Update functionality, the correct User Role must be assigned to the user who is about to perform the closing. This is done in the Security functionality. /sicsdocs/user_guide/pc/mg_acc/retro_estimation_calc_order/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/mg_acc/retro_estimation_calc_order/ The purpose of this order is to book the Period Estimates on the business ledger of Proportional OCCs and Retrocessionaire’s. The function takes into account that the estimated figures and the accounted figures may be in different currencies and / or for different accounting periods (Accounting From Date, Accounting To Date). The Retrocession estimation calculation order will perform the same calculations as a normal Retrocession calculation order: It uses the estimates from the Assumed Business to update the Proportional OCC and the Retrocessionaire’s with estimates. /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/default_period_estimates/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/default_period_estimates/ The Default Period Estimates form the basis for estimations at the business. For example, you can provide a pattern at the Portfolio Program of how the premium is written over two years. You have percentages as estimation defaults. These percentages can be used at business (section) level to calculate the estimations. Default Period Estimates are values that are usually produced by an actuary. Default Period Estimates can, for example, represent the development of the loss ratio of a portfolio. /sicsdocs/user_guide/pc/mg_acc/import_ultimate_loss_ratio_and_ibnr_from_an_ext_file/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/mg_acc/import_ultimate_loss_ratio_and_ibnr_from_an_ext_file/ Four variables that can be used in the Calculation Rules for calculating IBNR and Loss Ratio on an ultimate basis are uploaded from an external file. The upload can be executed from the System Administration Utility. In the Inbound Interfaces folder there is an icon called Ultimate Loss Ratio Import. Just double-click that and the file selection window opens up. Then select the external file that contains the data that shall be uploaded. /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/period_estimates_on_portfolio_prog/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/period_estimates_on_portfolio_prog/ To get an overview of the estimations done on the Assumed Business you can use the Underwriters Estimates window / Period Estimates tab on the Portfolio Program. You can also make adjustments to these estimations. On the Period Estimates tab of the Portfolio Program you can see the sum of estimations of all Assumed Business connected to the Portfolio Program section. You also see the various estimation currencies used on the business. /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/loss_development_patterns/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/loss_development_patterns/ Losses within the same category often develop in similar ways over time. Specific patterns of loss development can help the underwriter to e.g. calculate IBNR reserves. Loss Development Pattern selected on Portfolio Program is inherited to linked Assumed Businesses. Inherited Loss Development Pattern can be overridden on Assumed Businesses - values can be changed or a completely different Loss Development Pattern can be selected. Register Incurred Development Curve: # Open Underwriters Estimates and select the Loss Development Pattern tab Select to open the Incurred Development Curve subtab in edit mode Click the edit button next to Loss Development Pattern field and select wanted pattern Save the selected Loss Development Pattern If required, make changes to Number of Months and values Save Register Paid Development Curve: # Open Underwriters Estimates and select the Loss Development Pattern tab Select to open the Paid Development Curve subtab in edit mode Click the edit button next to Loss Development Pattern field and select wanted pattern Save the selected Loss Development Pattern If required, make changes to Number of Months and values Save Register a second Incurred Development Curve: # Open Underwriters Estimates and select the Loss Development Pattern tab Select to open the Incurred Development Curve 2 subtab in edit mode Click the edit button next to Loss Development Pattern field and select wanted pattern Save the selected Loss Development Pattern If required, make changes to Number of Months and values Save Register a second Paid Development Curve: # Open Underwriters Estimates and select the Loss Development Pattern tab Select to open the Paid Development Curve 2 subtab in edit mode Click the edit button next to Loss Development Pattern field and select wanted pattern Save the selected Loss Development Pattern If required, make changes to Number of Months and values Save Your system may have been set up to automatically update Loss Development Curves whenever an update is made in system parameters. /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/ulr_and_ibnr_method/ Mon, 01 Jan 0001 00:00:00 +0000 /sicsdocs/user_guide/pc/maintain_mg_estimates/estimates/ulr_and_ibnr_method/ The Ultimate Loss Ratio reflects the worst case scenario for a risk, and is used to calculate for example IBNR reserves. The fields can be registered in Underwriters Estimates at Portfolio Program level, and can be used in the calculation of Underwriters Estimates on linked Assumed Businesses. In addition, you can register one or two IBNR Methods which can be used to determine the formula to be used when calculating IBNR on linked Assumed Businesses.