| [SICSR-17279] Approximation of Ceded Factor when calculated from PV amount creates side effect down the line | |
|---|---|
| Product Line: | Life |
| Component/s: | Accounting Cession/Retrocession (Life) |
| Affects Version/s: | SICS 4.9.2 SSP5 |
| Fix Version/s: | SICS 4.9.5 SICS 4.9.2 SSP7 SICS 4.9.2 SSP8 |
| Customer: | Swiss Life Zurich |
Problem:
Approximation of Ceded Factor when calculated from PV amount creates side effect down the line
Solution:
When the Limits on the section to which the retrocession benefit is linked to is flagged as 'All Limit amounts are Present Value Amounts'
1. Calculate the retro factor using the Present Value amounts as per existing functionality
2. Update the field 'Ceded Factor' with the calculated retro factor as per point 1 rounded off to 6 decimals
3. Introduce a new column in the 'Present Value Retroceded' . This field will contain the calculated value for the Present Value Amount on the inward cession * Retro Factor and round it off to 0 decimals
4. Apply the same retro factor as per point 1 to the Gross Sum Reinsured and Sum at Risk on the inward cessions without recalculation and this value will be displayed in the fields Gross Sum Reinsured Retroceded and Sum at Risk Retroceded
5. No further calculations to be done on the retro factor/ ceded factor
6. The Initial Percentage field on the retrocessionaire placements window will be the share percentage from the retrocessionaire placements and this percentage will be applied to all the values on the outward cession without further recalculation. This will be applicable in all scenarios, whether the Limits are expressed in PV amounts or not. (Irrespective of the flag ''All Limit amounts are Present Value Amounts' and 'PV functionality in use' on the SR condition)
Declination Reason:
Workaround:
Root Cause:
Extent of Impact:
Impact on Existing Data
Recovery Method for Existing Data Affected