Business

9.5. Business

As companies have different underwriting practices, the needed business validations and behaviours vary from company to company. The following describes the options that your company has to influence the business functionality throughout the system. You find these options under the Business tab within your system parameters.

Miscellaneous #

The parameter choices listed on the Miscellaneous tab include a variety of options mainly affecting the business functional areas in SICS.

Select the System Administration icon from the SICS Workstation desktop.
Select System Parameter Maintenance.
Select the Business tab.
Select the Miscellaneous tab.

	Description
Allow LCP Changes From Definite to Declined	Selected: Possible to change Life Cycle Status (LCS) from Definite to Declined. Cleared: Not possible to change Life Cycle Status from Definite to Declined. Relevant when: A cedent may decline a business already accepted by the reinsurer or a cedent might sign down the business to a point where the reinsurer is not interested anymore. Not all companies see these types of declinations as valid. Instead of declining the business, they would e.g. inactivate the business, cancel the business from inception or simply keep a business as definite with a signed share of zero. Applicable for: P&C, Life
Advanced Wording Handling	Selected: After a business have become definite, the system offers the possibly of updating statuses relating to contractual documents. With this parameter selected the system provides a more detailed means of tracking the statuses. For example, the system tracks the status for all types of contractual document (e.g. main wording, amendment advice, and cancellation advice.) and maintains the history of the wording/certificate status changes. Cleared: SICS offers a simpler and more limited means of tracking the status of a contractual document. It allows maintenance for only one contractual document, namely the main wording for treaty business and the facultative certificate for fac business. Also, the system shows only the latest wording status and keeps no history. Relevant when: Different locations have different legal requirements for signing of contracts, as well as different companies have different levels of monitoring internal “bottle necks”. For example, in the US, it is mandatory that reinsurance contracts/endorsements (wordings) be signed within 9 months of the effective date (e.g. NAIC 9-month rule) of the business (or endorsement). Applicable for: P&C, Life
Restrict Edit of Business Partners with Defined Period	Selected: Prevents users from manually changing an existing period on a business partner role Some users may be given the authority to change an existing period. Cleared: It is possible to manually change business partner period without special access rights granted. Relevant when: The business partner period is most likely registered because there has been a change in business partner. This will affect many of your businesses and with this parameter selected, the period can only be changed through the Business Partner Role Mass Update facility or manually by users granted a specific access right. Applicable for: P&C, Cede, Life
Show Business Partner in Deduction Conditions	Selected: The system offers a possibility of entering the company that earns a particular deduction (in the Paid To column of the Deduction Conditions). The business partner with the Payment Task will be defaulted, but the user can change the default. Cleared: Paid To column does not appear in Deduction Conditions. Relevant when: The recipient of the deduction is not the partner with payment task. Applicable for: P&C
From Date Mandatory when Replacing Business Partner	Selected: It is mandatory to register From Date when replacing business partner on single business or by using the Business Partner Role Mass Update facility Cleared: It is possible, but not mandatory to register From Date when replacing business partner on single business or by using the Business Partner Role Mass Update facility Relevant when: In case of mergers and acquisitions it is important to know from when the change is effective. With this system parameter selected, the exact date of the change is registered on all affected businesses. Applicable for: P&C, Cede, Life
Remove or Add Assumed Businesses on OCC not allowed	Selected: It is not allowed to add or remove an assumed business from the list of protected business (AB button) found on the outward cedent’s contract, if the selected assumed business has bookings. The user has to use the proportional protection assignment on the assumed business to make this update. NB! Even with this parameter selected the option to import Assumed Businesses may be enabled if the below system parameter Import Protected Assumed Business on Treaty OCC is activated. If the option to import Assumed Business is executed and the Assumed Businesses have bookings, the system will generate preliminary bookings for these on the OCC Cleared: It is allowed to add assumed business or remove them from list of protected business on the OCC. even if the selected assumed business has bookings. Note that no adjustment of the preliminary bookings, if any, will be performed in this case. Relevant when: Companies wanting to ensure that adjustment of the preliminary bookings are made upon change of protection assignment, should use the protection assignment function initiated from the assumed business side. Applicable for: P&C, Cede
Default broker role as optional on partner assignemnt	Selected: The system lists broker role as default on the inward contracts. The Broker role is still optional. Cleared: When creating a new business, the system defaults only reinsurer and cedent roles. Relevant when: Some companies have a large portion of their business through brokers. Applicable for: P&C, Cede
Allow Service Contract as a level of business	Selected: The system shows Service Contract in the level of business list. Users can do creation, maintenance, set up securities, and other related operations for Service Contract Cleared: Service Contract is not shown in the Level of Business. Relevant when: Companies want to record the Service Contract between the Reinsurer and the Service Company (and or Other Cedents), create the links between Inward Assumed Business and Service Contract, and make Accounting Adminitration. Applicable for: Life
Import Protected Assumed Business on Treaty OCC	Selected: From the list of protected businesses (AB button), found on outward cedent’s contracts, the system allows loading assumed businesses through an external file. The system allows this for treaty OCCs. The AB button will in this case also be available whether the OCC has already been assigned to an assumed business or not. This parameter is enabled even if the above parameter Remove or Add Assumed Businesses on OCC not allowed is selected. This also means that if the imported Assumed Businesses already have bookings present for this insured period, then preliminary bookings will be generated for these on the OCC Cleared: The system does not allow loading assumed businesses through external files. Also, the AB (Protected Business) button on the Outward Cedent’s Contract will not appear, before the user has assigned the OCC to an assumed business. Relevant when: Some companies want to speed up the protection assignment for a list of assumed businesses to given outward treaty. Applicable for: P&C
Default Base Currency	Selected: This is the base currency of the installation and naturally it is very crucial that this is selected. It is used throughout the system in all on-line conversion, e.g. claims list, business highlights convert to function and on-line statistics. When the original currencies are converted to a selected currency, the system always converts via the base currency. In special cases, the default base currency can be overridden by another base currency for a specific base company. Still, when two businesses have different base companies and one has its own base currencies, the system would use the default base currency. Only currencies defined as Primary Currencies are available for selection (Primary Currencies: refer to Reference items/ Currency and Exchange Rates). For various reports, the Base Currency is selected as currency to express amounts in, unless another currency is selected. Cleared: No base currency is yet selected. Relevant when: The default Base Currency is to enable SICS to identify a specific currency for exchanging currencies for the purpose of online conversions. Applicable for: P&C, Life
Euro Currency	Selected: Determines what currency the EURO is represented by. If you use international currency codes, the selected currency here would be EUR. The currency must already be defined in the Currency and Exchange Rates portion of SICS as a primary currency, and its exchange rate method must be defined as primary in foreign. This enables exchange rates for EMU currencies to be held against the EURO and for the exchange process to use the EURO as Primary Currency. To have an effect, this option must be used in combination with selecting the parameter the Euro Exchange For EMU Currencies. Cleared: EURO is not representing any EMU currency Relevant when: Companies having business with countries that have joined the European Monetary Union and wants SICS to convert EMU currencies according to EMU standards. Applicable for: P&C, Life
Euro Exchange For EMU Currencies	Selected: EURO will be forced as primary currency for exchanging EMU currencies, using the fixed rate that all EMU currencies must have against EURO. (All countries that have joined the EMU will have the attribute Is EMU Currency selected in the Currency and Exchange Rates in Reference Items). Example: If FRF is set up as EMU currency, and you want to see e.g. online statistics presented in USD, the exchange process will be FRF - EURO - Base Currency - USD, using the fixed FRF - EURO rate. Cleared: EURO will not be forced as Primary currency Relevant when: Companies having business with countries that have joined the European Monetary Union and wants SICS to convert EMU currencies according to EMU standards. Applicable for: P&C, Life
Allow Service Contract as a Level of Business	Selected: A new level of business ‘Service Contract’ will be available. This level of business will allow creation of a Service Contract to which several Assumed Businesses can be linked Cleared: It will not be possible to create a Service Contract Relevant when: The Reinsurance company administers several businesses through a Service Company and wishes to create accounting on the Service Contract level. This type of business is predominantly relevant to the China market. Applicable for: Life

P&C Miscellaneous #

The parameter choices listed on the P&C Miscellaneous tab include a variety of options mainly affecting the business functional areas specific to P&C. (They do not affect SICS Life.)

Select the System Administration icon from the SICS Workstation desktop.
Select System Parameter Maintenance.
Select the Business tab.
Select the P&C Miscellaneous tab.

2_P&C_NEW.png

	Description
Keep Retroceded % to Prop Fac editing Assumed Share	Selected: When you change the share of an assumed business, the share of any proportional facultative retrocessionaire that this assumed business retrocedes to will change accordingly. The Retroceded Gross and Net Percent for the proportional facultative protections will however NOT change. This behaviour applies to any share status (e.g. written, offered) and any agreement life cycle status. Example: * Assumed Share from 100%: 50% * Proportional Protection: * Retroceded Gross: 50% * Retroceded Net: 50% * Share from 100% of fac retrocessionaire: 25% * Assumed Share from 100% is changed to: 25% * Retroceded Gross: 50% * Retroceded Net: 50% * Share from 100% of fac retrocessionaire: 12.5% Cleared: Retroceded Gross and Net for proportional facultative protections change if you change share on the assumed business. The share of the retrocessionaire stays the same. Example * Assumed Share from 100%: 50% * Proportional protection as in above example * Assumed share is changed to: 25% * Retroceded Gross: 100% * Retroceded Net: 100% * Share from 100% of fac retrocessionaire: 25% Relevant when: Companies’ views and practices within retrocession of facultative business might differ when it comes to what effect a change of share (normally a signed down) should have. Some think that it should affect the retroceded percent and that the retrocessionaires should be unaffected. Others practice an equivalent sign down of the retrocessionaires. Applicable for: P&C
Allow Proportional OCC Placement above 100%	Selected: The users are allowed on a proportional outward cedent’s contract (OCC) to place over 100% to the retrocessionaire(s), i.e. total signed share can be more then 100%. Note! SICS will not calculate the 100% amount to be retroceded to the OCC. This must be done manually. Note! SICS will automatically distribute the 100% amount booked on the OCC to retrocessionaires according to their shares - even when adding up to more than 100% Cleared: System will return an error message and inform the user that the total signed share is more than 100% and that the Placement Completed cannot be set to Yes Relevant when: Some companies have the view that by over placing, they may obtain a larger volume of assumed businesses. Applicable for: P&C
Joint Underwriting Agreement in Use	Selected: It possible to record as many reinsurers as the user want on a business (e.g. assumed, administrative). It is still NOT possible to record more than one reinsurer/retrocessionaire on retrocessionaire participation. This means that the business is split between the reinsurers according to percentages assigned to each reinsurer for the treaty. This UA split percent can be found in the Partner Tab of a business. For inward accounting NO linked functionality exists, however for protection assignment and for retrocession accounting there is linked functionality available. Level of Business Joint Contract is available Cleared: No more than one reinsurer/insurer is allowed on an assumed or administrative business. This reinsurer gets an UA split of 100%, but this is not shown to the user (in Partners details on the business). Level of Business Joint Contract is not available Relevant when: Although quite rare, some times legally separated reinsurers have made an agreement to accept inward businesses jointly. Most reinsurers however do not enter into such agreements and holds instead 100% alone. Applicable for: P&C, Cede
Consider Authorized as Pending Status	Selected: The Authorised by Reinsurer value of the Agreement Life Cycle Status is available. This is a pending status and to save it, Written Share is compulsory. The system also requires Signed Share to give a business a definite status. Cleared: The Authorised by Reinsurer value is NOT an available Agreement Life Cycle Status. To give the business a definite status, Signed Share is not mandatory if Written Share is present. Relevant when: In certain places, e.g. US and Canada, it is a legal requirement to not show a contract as definite unless all parties involved bind it. In these places an authorisation/acceptance from a reinsurer would be viewed only as a pending business. Receipt of signed share is here the final confirmation that the cedent has accepted the business. Applicable for: P&C
Insured as Business Partner on all Types of Business	Selected: The “Find Business Partner” window is opened when assigning Insured to new or existing business. Cleared: The “Find Third Party” window is opened when assigning Insured to new or existing business. Relevant when: Whether to have this system parameter on or off, is depending on the type of business your company is dealing with. All businesses must have at least two official/ legal business partners. On direct businesses the insured is most likely a business partner, whilst on reinsurance businesses the insured is often a third party. You don’t select this system parameter when you generally don’t deal with the insured as a business partner. That is, your relation with the insured is through an intermediary, which will be your business partner. Applicable for: P&C
Multi Year Contracts Allowed	Selected: It is possible to transform an assumed business with a long insured period, e.g. over several years, to a Multi Year contract consisting of several sub periods. All sub periods have the same underwriting year, while the terms and conditions may vary. The SICS Multi Year contract offers features to ease the administration of several sub periods, e.g. applying similar conditions and amendments to all sub periods. Also, it offers an overview showing both information for the overall insured period and per sub period. Note! If the system parameter “Allow same Underwriting Year only once per Business” is selected, it is not possible to establish a Multi Year Contract Cleared: The users cannot establish Multi Year Contracts Relevant when: Reinsurance companies sometimes writes Multi Year contracts, which have insured periods consisting of several years. Contractually a Multi Year period is only one insured period with only one underwriting year. Most terms and conditions are also the same for the entire insured period. Sometimes however some terms and conditions differ per sub period within the insured period. Applicable for: P&C, Cede
Default only Leaf Section at Protection Assignment	Selected: At protection assignment the system displays initially only the Sub Sections (leaf sections) of the outward cedent’s contract as selectable. The user can however choose to see all sections and select from these. Cleared: At the protection assignment, the system shows all sections, including Main Section, Sub Section, Sub Sub Section as selectable. Relevant when: Reinsurance companies sometimes may want to assign protections only at the bottom level of the section hierarchies. Applicable for: P&C, Cede
Default Dates For New Business From Template	Inception Date: This date will be entered as insured period from date when using Copy Template to New Assumed Business. The date can be manually changed. Expiry Date: This date will be entered as insured period to date when using Copy Template to New Assumed Business. The date can be manually changed. Cleared: Insured period from and to date must be manually entered when using Copy Template to New Assumed Business. Relevant when: Occasionally a company has some businesses that are offered in a way that needs quick business registration and quick identifier allocation. They therefore take the assumed business template in use to copy from it. Business lending itself for this type of creation is typically very similar in nature. Defaulting from and to dates here makes this creation even quicker, however some companies might view these dates as something that the users should enter consciously. Applicable for: P&C
Insured Mandatory for Facultative Business	Selected: Users cannot create a proportional or non-proportional facultative business without assigning a partner with role insured. Cleared: Insured is optional also when creating facultative businesses. Relevant when: Some organisations consider it unnecessary to record the company being insured on an agreement as they prioritise using less time on creating the business. The insured could instead be incorporated in the business title. Other organisations view the insured as crucial information and want to ensure it being present on the business. Also, having the insured on the business enables the use of linked SICS functions, like Accumulation Control on Insured or Business Partner Facultative Analysis. Applicable for: P&C
Conditions Defaulted to Original/ Percent of Original	Selected: For proportional single treaty protections, the system defaults the following business conditions to original or percent of original * Deduction Conditions - Commission, Overrider, Tax on Premium, Fire Brigade Charges, Fronting Fees, Other Deductions * Accounting Conditions - Premium Portfolio Entry/Withdrawal, Loss Portfolio Entry Withdrawal, Premium Reserve, Loss Reserve, Premium Deposit, Interest, Tax on Interest * Profit Commission * Rebate Commission (No claims Bonus) Cleared: The system does not give any particular default business conditions for proportional single treaty protections. Relevant when: Most conditions of a proportional single treaty protection are the same as the conditions of the assumed treaty that it protects. Setting these conditions as original on the outward business ensures that they are kept the same, regardless of changes made to the inward treaty. Some companies however practise a high degree of special conditions for such outward protections. Applicable for: P&C
Allow Difference in Program and Contract Period	Selected: Creating a new contract from a program or workbench, assigning an existing contract to a program, copying a contract from contract in a program or assigning a program to a contract, the system only checks that the contract’s from date falls within the program’s period Not Selected: Creating a new contract from a program or workbench, assigning an existing contract from program, copying a contract from a contract in a program or assigning a program to a contract, the insured period of the contract and the program must be identical. Relevant when: For a complete overview, some companies group also contracts with differing periods into the same program. Others view only those with identical periods as being part of a program. Applicable for: P&C
Show Partner Rating on Contract	The system will for the selected rating system show the rating on the contract for the business partners involved. Values: Customized by your company. e.g. Moody’s, Standard and Poor Relevant when: The ratings can be from an external source, e.g. Moody’s or from an internal source in one’s own organization. Some companies have decided to use theses actively while working with the contracts and it is important that the users easily see the rating of the business partners involved. Applicable for: P&C, Cede, Life
Default Status at Upload of Placements	The life cycle status defaulted to placements at upload from external files and at copy of placements to Fac OCC Add and Realize window. Values: All Life Cycle Statuses in the reference data (Agreement Life Cycle Status’ Code 00090) that have been set up with parent Basic Status ‘Definite’. Default: ‘Offer Accepted’ (OA) Validations: Only one value allowed Can be changed Can NOT be removed Mandatory: Yes Functional Impact: Upload Placements to Outward Cedent’s Contract Placements Upload Intermediaries with Retrocessionaires to Outward Cedent’s Contract Placements Upload Placements within Add and Realize OCC Fac Protection window Copy Placement List within Add and Realize OCC Fac Protection window Applicable for: P&C, Cede
Include Previously Updated Businesses	Selected: When the Revised EPI Mass Update Order is run, Insured Periods where the Revised EPI has previously been updated by the Order will be updated again, if there is changes to the booked premium. Cleared: When the Revised EPI Mass Update Order is run, Insured Periods where Revised EPI has previously been updated by the Order will not be considered for further updates. Relevant when: You want Revised EPI to be updated each time the Mass Update is run if there is changes to the booked premium. Applicable for: P&C
Estimated Item	Selected: When the Revised EPI Mass Update is run, it will check the Period Estimates Item selected in this parameter. Only Insured Periods where this Estimated Item is set to Complete will be updated. Applicable for: P&C
Entry Code Group	Selected: When the Revised EPI Mass Update is run, Revised EPI on the selected Insured Periods will be updated with the booked amounts on Entry Codes included in the Entry Code Group selected in this parameter. Applicable for: P&C

Business View #

The alternatives existing for giving your users a quick overview of an agreement they have opened, you select in the system parameters listed under the Business View.

	Description
On Business Title Bar Show: Title	Selected: The system shows the title of an agreement in its business title bar (the top heading of the business main window). Cleared: The business title is not shown in business title bar Relevant when: The users normally incorporate key information in the title of an agreement, which might be useful in the title bar for identification purposes. Applicable for: P&C, Life
On Business Title Bar Show: Insured Period Title	Selected: The system shows the Insured Period Title of the agreement in its business title bar (the top heading of the business windows). This title describes the agremenet and is specific to the insured period. Cleared: The system does not show the Insured Period Title in the business title bar. Relevant when: The users normally incorporate key information in the title of an agreement, which may change from year to year. This might be useful in the title bar for identification purposes. Applicable for: P&C, Cede, Life
On Business Title Bar Show: Insured Period	Selected: In the business title bar, the system shows the insured period for which the displayed information is valid. Cleared: The insured period is not shown in business title bar Relevant when: Helps when navigating between different insured periods within one business. Applicable for: P&C, Life
On Business Title Bar Show: Level of Business	Selected: The system shows the level of business of the presented agreement, in business title bar. Cleared: Level of Business is not shown in Business Title Bar Relevant when: How much companies use different levels of business vary, e.g. some link assumed business to reinsurance programs while others do not use reinsurance programs at all. The importance of knowing where a user is during the navigation between levels would therefore vary. Applicable for: P&C, Cede, Life
On Business Title Bar Show: Former Business ID	Selected: The system shows the former business ID (identification) of an agreement in the business title bar of the Business Properties window. Cleared: The system doesn’t show the business ID in the title bar. Relevant when: Users want to make it easier to find and identify agreements. Applicable for: P&C, Life
On Business Title Bar Show: Section	Selected: In the business title bar, the system shows the section name of the section that the user has navigated to. Cleared: Section is not shown in business title bar. Relevant when: The section name often contains important information to identify where in the business structure a user has navigated. Companies using a high degree of sectioning might benefit from selecting this parameter. Applicable for: P&C, Life
On Business Title Bar Show: Insured On FAC Business	Selected: The system displays the insured’s name in business title bar for assumed facultative businesses. Cleared: Insured’s name is not displayed in Business Title Bar Relevant when: If the name of the insured is incorporated in e.g. the business title and you have chosen to show this also in the title bar, selecting insured for the title bar is maybe not needed. If this is not the case however, you may show the insured in the title bar for identification purposes. Applicable for: P&C
On Business Title Bar Show: Business Partner	Selected: The system shows the SICS Identifier for the business partner with the role cedent, in the business title bar. If a cedent is not registered with a SICS Identifier, the system shows instead the cedent’s name. This applies to all levels of business. Cleared: The business partner identifier or name is not shown in business title bar Relevant when: If for example your users normally incorporate the cedent’s name in the title of the agreements and you have chosen to show this in the title bar, selecting also the business parameter for the title bar would not be relevant. If however this is not the case, you may show the business partner in the title bar for identification purposes. Applicable for: P&C, Cede, Life
On Business Title Bar Show: Business Partner Name	Selected: The system shows the name of the cedent for business where the cedent normally is not the base company, e.g. assumed business. For direct business, the name of the insured is displayed. The system shows the broker name for Intermediary Placements and the retrocessionaire name for Retrocessionaire Participations. For an Unplaced Share business, the system displays the name of the reinsurer. Cleared: The business partner name is not shown in business title bar. Relevant when: To easily identify the key partner of a business. Applicable for: P&C, Cede, Life
On Business Title Bar Show: Base Company	Selected: The system shows the SICS Identifier of the company with the role as base company on the business, in the business title bar. This applies to all levels of business. Cleared: The system does not show the base company identifier in business title bar Relevant when: If for example your users normally incorporate the base company name in the title of the agreements and you have chosen to show this in the title bar, selecting also the business parameter for the title bar would not be relevant. If however this is not the case, you may show the base company in the title bar for identification purposes. Applicable for: P&C, Cede, Life
On Business Title Bar Show: Base Company Name	Selected: The system shows the name of the company with the base company role on the business, in the business title bar Cleared: The system does not show the base company name in the business title bar. Relevant when: For easy identification, it might be helpful for the user to see his/her ‘own’ company, e.g. the reinsurer on an assumed business, in the title bar. Applicable for: P&C, Cede, Life
Show Section Identifier	Selected: The system shows the External Identifier for the section in the business title bar and on the Structure overview (if Long Description tick box is selected) This applies to all levels of business. Cleared: The system does not show the External Identifier for the section in the business title bar or on the Structure overview. Relevant when: Users want to make it easier to find and identify the different parts/sections of an agreement. Applicable for: P&C, Life
Business Highlights, Layout 1	Selected: The business highlights for facultative and direct businesses show the following information: * Classifications, Business Partners and Currency * Shares: Share from 100% * Limits: All recorded limit types with values * Premiums/Deductions: Gross and net premium. All deductions presented in both percentage and amount * Claims: Claims Basis, Retro Date and Extended Date Note! The business highlights of other Types of business show information according to layout 1, regardless of parameter selection. Cleared: Layout 2 is selected Relevant when: When your company considers seeing details regarding premium and deduction conditions important for its facultative and direct businesses, you select this parameter. Applicable for: P&C
Business Highlights, Layout 2	Selected: The business highlights for facultative and direct businesses show the following information: * Classifications, Business Partners and Currency * Shares: Original Participation, Share From 100% and Share from Original Participation. * Limits: All recorded limit types with values * Premiums: Gross Premium * Deductions: Total Deduction in percent * Claims: Claims Basis, Retro Date and Extended Date * Responsible Persons: Lists persons and their responsibilities for the business Cleared: Layout 1 is selected Relevant when: When your company prioritises seeing details regarding shares and responsible persons for its facultative and direct businesses, you select this parameter. Applicable for: P&C

Insured Period #

The choices available for setting up the system behaviour relating to the start and end times of agreements, you choose by the system parameters found on the Insured Period.

	Description
Default From - To Time: Treaty Business	Entered: When creating a new proportional or non-proportional treaty, the system defaults the from and to time of the day to what has been entered in these fields. These defaults are given whether the business is created by the Create New Business wizard or by the Copy to New Business facility. Not Entered: Default From Time: 00:00:00 Default To Time: 23:59:59 Relevant when: Although the most common practice is to write business commencing mid-night, some companies have the majority of its business starting at a different time. This could in addition be different between treaty and facultative business. If however only some users typically write business starting at a different time, the SICS User Preference facility is recommended. These preferences would have priority over the system parameter settings. Applicable for: P&C
Default From - To Time: Fac and Direct Business	Entered: When creating a new proportional or non-proportional facultative or direct business, the system defaults the From and To time to what has been entered in these fields. These defaults are given whether the business is created by the Create New Business wizard or by the Copy to New Business facility. Not Entered: Default From Time: 00:00:00 Default To Time: 23:59:59 Relevant when: In some areas it is relatively common to write facultative business that do not commence at mid-night, e.g. mid.-day business, while in other areas the normal start of a facultative business is mid-night. If however only some users write business starting typically at a different time, the SICS User Preference facility is recommended. These preferences would then have priority over the system parameter settings. Applicable for: P&C
Allow ‘To Be Advised’ Insured Period	Selected: The system allows the creation of non-definite facultative and direct business with NO specific insured period from and to date, (also called insured period ’to be advised’ or TBA). For more details, refer to the Maintain Insured Period Information section in the User Guide. Cleared: It will NOT be possible to create businesses without specific insured period from and to date. Relevant when: For some companies it is common that the business partner offering business does advise of the start and end date of the risk. Some companies might choose to still take record of such business, among others, to assign it an identifier. Other companies might see the insured period as such a crucial information that it will not allow its business to be without. Applicable for: P&C, Life
Allow Same Underwriting Year only Once per Business	Selected: The user is stopped when: * renewing a contract and the new insured period gets the same underwriting year as an existing insured period. * changing an existing insured period so that the underwriting year is changed to an underwriting year already existing on the same contract * changing the underwriting year directly to one that is already existing. Cleared: The user is warned, but can still choose to continue, when: * renewing a contract and the new insured period gets the same underwriting year as an existing insured period. * changing an existing insured period so that the underwriting year is changed to an underwriting year already existing on the same contract * changing the underwriting year directly to one that is already existing. Relevant when: Some contracts have more insured periods per year, resulting in several insured periods with the same underwriting year, e.g. fac and direct business with short periods. Some companies do however not accept such business, and only write contracts that have one period per year. These might want to ensure that the same underwriting year only appears once per contract. Applicable for: P&C, Cede
Require Underwriting Year Same as Insured Period	Selected: For a contract, the system will stop the user from recording an underwriting year different from the Insured Period From Date. Cleared: The user can record an underwriting year that is different from the Insured Period From Date of the contract. Default: Cleared Relevant when: Reinsurance contracts normally have an underwriting year being the same as the year of the insured period from date. In some cases, companies consider a different year to be the underwriting year than the year of the insured period from date. For example, if a facultative business starts within the last hours of the last day of the year, some views the underwriting year to be a day later than the start of the contract and therefore change it to the year after. Some companies want to allow this while others not. Applicable for: P&C, Life, Cede
Change of IP/UW Year not allowed if Unsettled Booking exists	Selected: Do not allow update business Insured Period start date and underwriting year if it has unsettled Bookings/estimates. Cleared: allow update business Insured Period start date and underwriting year if it has unsettled Bookings/estimates. Default: Cleared Relevant when: Given that I want to prevent users from changing the IP start date or the UW Year.When unsettled booking or estimates exist on the IP.Then I select the new parameter to activate the functionality that prevents users from changing the IP start date or the UW Year. Applicable for: P&C
Prevent update of Insured Period Start Date or Underwriting Year on Definite Business	Selected: Do not allow update business Insured Period start date and underwriting year on a business. Cleared: allow update business Insured Period start date and underwriting year. Default: Cleared Relevant when: To be selected when the user should be prevented from changing the IP start date or the UW Year. Applicable for: Life

Copy/Renewal #

On this subtab, parameters can be set that affect the functionality of SICS during the renewal of business from one insured period to another and during copy of business.

	Description
Is Renewed Insured Period One Year Period	Selected: When renewing a business (all levels), the system will as default on the new insured period give: From Date: Last insured period’s To Date plus one second. To Date: Last insured period’s To Date plus one year. Selected: When renewing a business, the system will as default calculate the new insured period to have exactly the same number of days as the previous insured period. Relevant when: The choice depends on whether most of your company’s portfolio is one year agreements or not. Applicable for: P&C, Life, Cede
Copy Insured Period Former ID at Renewal	Selected: System copies identification entered in field “Insured Period Former ID” on Assumed Business to new Insured Period at renewal. Cleared: Identification entered in “Insured Period Former ID” filed on Assumed Business is not copied to new Insured Period at renewal Relevant when: Sometimes it is necessary to have more former identifiers on the business that do not change from year to year. Applicable for: P&C, Life, Cede
Copy Own Retention and Prop OCC on AB Renewal	Selected: SICS will upon renewal of an assumed business automatically copy its valid protection assignments (only Own Retention and proportional Outward Cedent’s Contracts) to the new insured period. The system will only link Outward Cedent’s Contract that, in advance, has an insured period covering the new assumed period. Cleared: No protection assignment will be copied to the new insured period on renewal. Relevant when: Your company does not change very often its own retention and the proportional treaty protection from one year to another. Applicable for: P&C, Cede
Automatic Renewal for Fac and Direct Business	Selected: When creating a new facultative or direct assumed business, the underwriter is allowed to select to include it in an automatic renewal facility. (The selection can alternatively be made on the insured period tab after the creation.) These businesses will then be included in an auto renewal job when run by the system administrator. This job creates a new insured period for the businesses, as well as copies all their conditions to the new period Cleared: Automatic renewal of facultative or direct businesses is not possible. Relevant when: Often the numbers of facultative and direct businesses in a system is high and automatic updates will add great timesaving. In addition, renewing the business automatically (to e.g. an offer status) ensures that they are under evaluation and can be followed up. Applicable for: P&C, Cede
Default Life Cycle Status for Auto Renewal	The status that the system will default when the user in the new business wizard selects a status specifically for the automatic renewal job. The user can manually change this default. Values: Renewal Offered Renewal Quote Requested Offer Accepted Offer Declined Information Agreement Validations: Only available if the parameter Automatic Renewal for Facultative Business is selected Relevant when: This parameter is for assisting the users in selecting the appropriate renewal status. Applicable for: P&C, Cede, Life
Default Share For Mass Renewal	When the system renews multiple businesses (e.g. retrocessionaires in a renewed outward cedent’s contract), it copies each participant’s share information to the renewed insured period. If the user selects a definite basic status in the mass renewal, the system copies the share to the signed or written share as selected in this parameter. Values: Written Share Signed Share Relevant when: Some companies require that an agreement does not show a signed share until it has received the correct and final signed share. Other companies might have shares that most of the time do not change from one year to another and prioritise therefore to save time on NOT having to open each an every business after the mass renewal. Applicable for: P&C, Cede, Life
Automatically Renew	The Basic Status that the last insured period of a business must have to be included in the automatic renewal job. Values: Definite and Informational Agreement (default) Definite Relevant when: Informational agreements often hold information of a business that has not been offered and is in many cases not necessarily interesting to renew. Applicable for: P&C, Cede, Life
Mass Renewal - Allow no copy of share to Definite	Selected: The system enables the flag Renewal without share on the Mass Renewal window for outward cedent’s contracts. The mass renewal enables this flag when choosing a definite status for the new period of the placements. Mass renewing with this flag selected: - The system renews the placements with no share on the new period Mass renewing with this flag cleared: - The system renews the placements to a definite status with shares copied from the previous insured period. Cleared: This flag is not available on the Mass Renewal window. The system renews the placements to a definite status with shares copied from the previous insured period. Relevant when: In the process of placing a reinsurance treaty during the renewal period, some companies prefer to review and enter all relevant shares for the new insured period from the placement list (Written share, Signed share, etc). Applicable for: P&C, Cede
First Insured Period defaulted to One Calendar Year	Selected: When creating new contracts from scratch or by copy, the system defaults the insured period To Date one calendar year after the entered From Date. Cleared: The insured period To Date is by default blank. Relevant when: When the first insured period for the majority of all your businesses is exactly one calendar year. Applicable for: P&C, Cede
Disable Copy of Business with Inactive Business Partner	Selected: The system stops the user with a message if he/she tries to create a new business by copy, when the copied business has an inactive business partner. Cleared: The system allows the user to copy a business even if it has an inactive business partner. The copy function brings the inactive partner to the new business without any message. Relevant when: When creating a new business from scratch, the system does not allow an inactive business partner. Some companies however thinks that it is too strict and cumbersome to be stopped also from copying a business, as they then would have to create the business from scratch. (The inactive partner might even have an unimportant role on the business, such as Other Reinsurer). These companies expect the user to replace the inactive partner after the copy. Other companies do not accept inactive partners on a new business, regardless of how it is created. Applicable for: P&C, Life
Copy Share at Copy to New Bussiness	Selected: When copying a business, the system also copies the shares from the source business. Cleared: When copying a business, the system does not copy the shares from the source business. The new business will then have no share. If the new business gets a definite status, the system adds a share page to the copy function, and the user must enter a share. Default: Seleced Relevant when: Users often use an already established contract as a template for creating a new business. When copying a business, some want the share of the source business as a starting point for later updates. As shares however vary from a contract to another, others might want to copy a business without copying the shares. Applicable for: P&C, Cede
Warn before replacing inactive business partner	Selected: The system shows a warning message to ask the user whether to replace the inactive business partner on the business with its active merger parent, at renewal of business, copy and change of life cycle status. Cleared: The system will directly replace the inactive business partner with its active merger parent. Applicable for: P&C, Cede, Life

Business Identifiers #

In SICS you can create your own Business Identifier Series with specific selection criteria.

System_Parameter_Maintenance_Business_Business_Identifier.png

	Description
Assign Manual Business ID with Auto Option	Selected: It is possible to to manually enter a Business Identifier when creating a new business or when copying an existing business on-line or by web service. If you do not enter a Business ID manually, the system automatically generates the business ID. Cleared: Business ID is automatically generated. If system parameter ‘Manual Business Identifier allowed only for Web Services’ is selected, businesses created by web service can still have manually entered Business ID Validations: This parameter cannot be selected if the parameter ‘Manual Business Identifier allowed only for Web Services’ is also selected Relevant when: You want to give a small number of businesses a Business ID that is different from what would have been automatically allocated, e.g. a specific suffix. Applicable for: P&C, Cede, Life
Manual Business Identifier allowed only for Web Services	Selected: It is possible to manually enter Business Identifier when creating a new business or copying an existing business by web services. If you do not enter a Business ID manually, the system automatically generates the business ID. Businesses created manually/on-line, cannot be given a Business ID manually Cleared: Business ID is automatically generated If system parameter ‘Assign Manual Business ID with Auto Option’ is selected, businesses created on-line or by web service can have manually entered Business ID Validations: This parameter cannot be selected if the parameter ‘Assign Manual Business ID with Auto Option’ also is selected. Relevant when: When recording a new business by use of web service, and this business already has an identifier in another system, you want to keep the same business identifier in SICS. Often companies in this case, still do not want users who creates business manually to be allowed to enter manual business IDs. Applicable for: P&C, Cede, Life
Let the Business ID for Placements be Equal to the Master buseinss ID Plus a Sequence Mumber	Selected: When a business is created from a “master” (e.g. Outward Cedent’s Contract, Assumed Business), the sub business/placement (e.g. facultative protection, retrocessionaire) gets the same Business ID as the master business plus an additional sequence number. If System Parameter Assign Manual business ID with Auto Option is selected, Business ID can be manually entered. Cleared: Business ID of placements is generated according to Business Identifier Series and Selection Criteria settings Relevant when: When the placement has the same Business ID as the master business, it is easier to see which placements belong to which master business. Applicable for: P&C, Cede, Life
Let the Business ID for Single Treaty Protection be Equal to the Master Business ID Plus a Sequence Number	Selected: When a Single Treaty Protection (STP) is created from a master business, STP will automatically get the same Business ID as the master business plus a sequence number. For an assumed intra group contract being a single treaty protection, the Business Identifier will then be the ID of the intra group retrocessionaire plus a sequence number. If System Parameter Assign Manual business ID with Auto Option is selected, business ID can be manually entered. Cleared: Business ID of STP is generated according to Business Identifier Series and Selection Criteria settings Relevant when: When the STP has the same business ID as the master business, it is easier to see which placements belong to which master business. Applicable for: P&C, Cede, Life

Create new Business Identifier Series #

Business Identifier Series can be created per Level of Business, Type of Business, Main Class of Business, Class of Business and Location.

Select System Parameters for Business
Click Edit Button and select Business Identifiers
Select New from the pop-up menu in Business Identifier Series
Enter details about the new business identifier series (prefix/ suffix, minimum/ maximum number, Base Company, active/ not active) in the Identifier window and click Save
Click OK to save the new Business Identifier Series or continue creating new selection rule.

Field Description - Create New Business Identifier Series #

Note! You can have series with the same prefix and suffix, but in that case the intervals (serial numbers) cannot overlap.

	Description
Prefix:	The prefix you want to be a part of the Business Identifier Values: Letters and numbers, maximum 10 characters Applicable for: P&C, Life
Default Suffix:	The suffix you want to be a part of the Business Identifier Values: One letter, (A-Z) Functional Impact: When copying such a business the end user is given the possibility to manually enter another suffix for the new business. Applicable for: P&C, Life
Minimum and Maximum Number:	The limits of the serial number you want use in the Business Identifier Values: Numbers, maximum 9 positions Applicable for: P&C, Life
Last Used Number:	Last number used for this Business Identifier series is updated by the system. Applicable for: P&C, Life
Base Company:	Business Identifier Series is only available for selected (optional) Base Company. Values: Base Companies registered in SICS Applicable for: P&C, Life
Active:	Indication whether the Business Identifier Series is in use Values: Yes/ No Applicable for: P&C, Life

Create new Selection Rule for Business Identifier Series #

Click Edit Button and select Business Identifiers (if not already in Edit mode)
Select the Business Identifiers Series that you want to create a Selection Rule for
Select New from pop-up menu in Selection Criteria
Select the Classification Type (Level of Business, Type of Business, Main Class of Business etc.) that you want to enter selection criteria for
Select from the values that becomes available
When you have completed selections for the new rule, click Save
Click OK to save the new Selection Rule for Business Identifier Series

Identifier Rules (Selection Criteria) #

The rules define which Identifier Series should be used when a new business is created. This is how the system determines whether or not a rule “matches a business:

The matching algorithm always starts with checking the most “Detailed” rule. It will first check all rules that have COB, then those that have MCOB, then those that have Type of Business, then those that have Level of Business - and finally those rules that have nothing specified.

If a rule has many selected classifications for a Classification Type (e.g. more than one Level of Business and/or Main Class of Business):

For businesses that allow only ONE classification value of a Classification Type (e.g. Level of Business) all businesses that have one of the selected values will match the rule

For businesses that allow MANY classification values of a Classification Type (e.g. MCOB, COB, Countries, etc.) only businesses that have all these classifications selected will match the rule

If a rule contains selection items of different types (e.g. Level of Business and MCOB), then a business must match all the types, in order to match the rule.

If an ID series has more than one rule, a business only has to match one of the rules

If a new business is created before any ID series is defined, or none of the ID series has selection criteria that matches the business, the system will give the new business the default prefix “SICS”.

Insurables #

You can modify the automatic features available for peril exposure calculations in this window.

Details #

The restrictions for manual versus automatic updates of insured period cession information, you can define in this window.

	Description
Manual Update Allowed for Facultative Peril Cessions	Selected: Manual input allowed for Exposure 100%, Exposure Our Share, Gross Liability 100% and Gross Liability Our Share under Pe, (Insured peril cession), button for a facultative business. Cleared: No manual input allowed. Exposure is result of a calculation and value cannot be overridden. Relevant when: Some companies decide their exposures based on highly detailed guidelines for calculation. These companies might want this process as automated as possible as end-user updates might be a risk for errors. Other companies might want input also based on end-users’ individual judgements. Applicable for: P&C
Manual Update Allowed for Treaty Peril Cessions	Selected: Manual input allowed for exposure 100% Exposure Our Share, Gross Liability 100% and Gross Liability Our Share under Pe, (Insured Peril Cession), button for a treaty business. Cleared: No manual input allowed. Exposure is result of a calculation and value can not be overridden. Relevant when: Some companies decide their exposures based on highly detailed guidelines for calculation. These companies might want this process as automated as possible as end-user updates might be a risk for errors. Other companies might want input also based on end-users’ individual judgements. Applicable for: P&C
Include Sub Zones at Accumulation Control	Selected: Performing accumulation control, both the requested risk zone and the belonging sub zones are included. Cleared: Performing accumulation control, only the requested zone is included. Relevant when: For some agreements, very specific information exist on insured risks of a catastrophe in a certain risk zone, and therefore perils at specific sub zones are recorded. For other agreements, information exists only at a more general level, and perils at higher levels in the zone hierarchy is recorded. Choosing whether to perform the accumulation control for a specific zone or at a higher zone level could be beneficial. Applicable for: P&C, Cede

Cession Limit Calculation Rules #

You can set up formulas for automatic calculation of amounts for insured peril cessions in this window.

System_Parameter_Business_Insurables_Cession_Limit_Calculation_Rules.png

	Description
Cession Limits	What you see here depends on what has been set up in the reference data. The values are Limit Premium Optional fields (Subclass 01001). What you see depends on the limit behaviour given to a specific Limit Premium Optional Field. Selecting a value in the list allows you to specify a calculation rule for this specific cession limit and limit behaviour.
Limit Behaviour	In order to be able to set up different calculations depending on type of business several Limit behaviours are available. Values: Cession-Excess of loss Treaty, Cession-Excess of loss Treaty per Event, Cession-Non Prop Fac or Non Prop Direct, Cession-Prop Fac or Prop Direct, Cession-Open Cover prop Treaty, Cession-Quota share Treaty, Cession- Surplus Treaty, Cession-Stop Loss Treaty Relevant when: A calculation rule should be set up for a specific type of business. Applicable for: P&C
Visible on cession list	Selected: A column is added under Pe, Insured peril cession, button for the specific cession limit. Cleared: The cession limit is available for update on Edit Limit Premium for cession Relevant when: A value should be updatable on cession list Applicable for: P&C
Store Result	Selected: Result of calculation is stored. Cleared: Result of calculation is not stored only visible on screen. Relevant when: Calculated amount should be used in further calculation. Applicable for: P&C
Calculation Rule	Here you create the calculation needed in order to give the Cession limit the intended functionality, e.g. compare several other limits and Select the lowest. Applicable for: P&C

Create Calculation Rule #

Select a Limit behaviour
Select the cession limit you want to create a calculation for
Create your calculation.

Calculation Rule Functions #

Name	IF..Then..Else..End
Code Name	(#IF ( <condition> ) #THEN <command1> #ELSE <command2> #END)
Return data type	Depends on return date type of <command1> or <command2> respectively
Arguments	<condition> is a Boolean expression <command1> is one or more commands that are executed if <condition> evaluates to true <command2> is one or more commands that are executed if <condition> evaluates to false
Description	This function works like known from other programming languages. A condition is checked. Depending on the result (true or false) the Then branch or the Else branch is executed.

Calculated Amounts #

Name	Cession Deductible Maximum Amount
Code Name	( #FUNC getCessionDeductibleMaximumAmountForOptionCode: ‘CODE’ “name” )
Return data type	Integer
Arguments	CODE and name: is the reference data code and name for the selected deductible
Description	The arguments of the function are selected from a pop-up table that contains all values for reference data sub class 01001 of type deductible

Name	Cession Deductible Minimum Amount
Code Name	( #FUNC getCessionDeductibleMinimumAmountForOptionCode: ‘CODE’ “name” )
Return data type	Integer
Arguments	CODE and name: is the reference data code and name for the selected deductible
Description	The arguments of the function are selected from a pop-up table that contains all values for reference data sub class 01001 of type deductible

Name	Cession Deductible Percent
Code Name	( #FUNC getCessionDeductiblePercentOptionCode: ‘CODE’ “name” )
Return data type	Decimal
Arguments	CODE and name: is the reference data code and name for the selected deductible
Description	The arguments of the function are selected from a pop-up table that contains all values for reference data sub class 01001 of type deductible

Name	Cession Insurable Location Is Location Used Flag
Code Name	( #FUNC getCessionInsurablePerilLocationUsedForCalculationFlag )
Return data type	Boolean
Arguments
Description	Triggers calculation of Total Zone Sub Limit based on No of location * Zone Sub Limit

Name	Cession Insurable Peril Coinsurance Percent
Code Name	( #FUNC getCessionInsurablePerilCoinsurancePercent )
Return data type	Boolean
Arguments
Description	Used to include the coinsurance percent in a calculation

Name	Cession Insurable Peril Exposure Basis
Code Name	( #FUNC getCessionInsurablePerilExposureBasis )
Return data type	Boolean
Arguments
Description	Used to include exposure basis in a calculation

Name	Cession Insurable Peril Is Coinsurance Applicable on
Code Name	( #FUNC getCessionInsurablePerilIsCoinsuranceApplicableOn: ‘CODE’ “name” )
Return data type	Boolean
Arguments	CODE and name: is the reference data code and name for the selected reference data value
Description	The arguments of the function are selected from a pop-up table that contains all values for reference data sub class 01044

Name	Cession Insurable Peril PML factor
Code Name	( #FUNC getCessionInsurablePerilPmlFactor )
Return data type	Percent
Arguments
Description	Used to include PML factor in a calculation

Name	Cession Limit Optional Amount
Code Name	( #FUNC getCessionLimitAmountForOptionCode: ‘CODE’ “name” )
Return data type	Decimal
Arguments	CODE and name: is the reference data code and name for the selected reference data value
Description	Used to include a cession limit value in a calculation

Name	Cession Premium Optional Amount
Code Name	( #FUNC getCessionPremiumAmountForOptionCode: ‘CODE’ “name” )
Return data type	Decimal
Arguments	CODE and name: is the reference data code and name for the selected reference data value
Description	Used to include a cession premium value in a calculation

Name	Cession Time/measurement Optional Amount
Code Name	( #FUNC getCessionTimeMeasurementAmountForOptionCode: ‘CODE’ “name” )
Return data type	Decimal
Arguments	CODE and name: is the reference data code and name for the selected reference data value
Description	Used to include a cession Measurement value in a calculation

Name	Premium Optional Amount
Code Name	( #FUNC getCessionPremiumAmountForOptionCode: ‘CODE’ “name” )
Return data type	Decimal
Arguments	CODE and name: is the reference data code and name for the selected reference data value
Description	Used to include a premium value in a calculation

Name	Estimated signed share, Signed Share, Written share
Code Name	( #FUNC getEstimatedSignedShare ) ( #FUNC getSignedShare ) ( #FUNC getWrittenShare )
Return data type	Decimal
Arguments
Description	Returns the values entered in the respective fields in share condition

Name	Limit Optional Amount
Code Name	( #FUNC getLimitAmountForOptionCode: ‘CODE’ “name” )
Return data type	Decimal
Arguments	CODE and name: is the reference data code and name for the selected reference data value
Description	Used to include a limit value in a calculation

Name	Premium Optional Amount
Code Name	( #FUNC getPremiumAmountForOptionCode: ‘CODE’ “name” )
Return data type	Decimal
Arguments	CODE and name: is the reference data code and name for the selected reference data value
Description	Used to include a premium value in a calculation

Name	Time/measurement Optional Amount
Code Name	( #FUNC getTimeMeasurementAmountForOptionCode: ‘CODE’ “name” )
Return data type	Decimal
Arguments	CODE and name: is the reference data code and name for the selected reference data value
Description	Used to include a Measurement value in a calculation

Name	SUPI Amount
Code Name	( #FUNC getSupiAmount )
Return data type	Decimal
Arguments
Description	Used to include a SUPI amount in a calculation

Conditions #

On this subtab you can alter the functions available for handling the businessterms and conditions of an agreement.

Miscellaneous #

System_Parameters_Business_Conditions_Miscellaneous1.png

	Description
No Calculation Frequency Validation on Assumed Contracts	Selected: The system exempts assumed business from the requirement of sliding scale commission and profit commission First Calculation After and Subsequent Calculation After result in ‘as of dates’ equal to existing accounts as of dates. Other levels of business will still have this validation. Cleared: The system requires that the sliding scale commission and profit commission First Calculation After and Subsequent Calculation After would result in ‘as of dates’ equal to existing accounts as of dates in the administration conditions. Relevant when: The calculation frequency of sliding scale commission and profit commission and the accounts as of dates are often for information only for assumed business, as the cedent or broker most often produce these here. Applicable for: P&C, Cede
Admin Cond. Available for Non-Prop TTY/ Fac and Direct	Selected: All types of business will have the Administration Condition (A button) available in the Navigation bar Cleared: Only proportional treaty will have the Administration Condition (A button) available in the Navigation bar. Relevant when: Although using accounts is most normal for proportional treaties, some companies also account some of their facultative or non-proportional treaty business by use of accounts. Applicable for: P&C
Allow more than 100% Deposits	Selected: The user is allowed to enter loss and premium deposits (on the Deposit Conditions) that exceed 100%. This system parameter affects all types of business. Cleared: SICS stops the user with an error message if the premium and/ or loss deposits exceed 100%. Relevant when: Some countries, e.g. US, have regulations requiring that a company can hold more than 100% deposits. If writing business from these countries, you might have agreements with more than 100%, e.g. the loss deposits being 100% of the loss reserves + 8% of the not yet booked IBNR. Some companies may however NOT allow users to record more than 100% deposits. Applicable for: P&C
Claim Basis Mandatory for Non-Prop TTY	Selected: The Claim Basis (e.g. losses occurring, risk attaching) is mandatory for creating a claim on an assumed non-proportional treaty. When a claim basis is defined on the business, the claim trigger code (on the claim) automatically defaults to the selected claim basis. When claim basis is mandatory, the value “None” is not sufficient Cleared: The Claim Basis is not mandatory for creating a claim on an assumed non-proportional treaty. When no claim basis has been entered on the business, the user is required to either enter a Date Of loss as the Occurrence date or select a claims trigger code and date on the claim itself. Relevant when: As the claim basis is crucial for non-proportional treaties and normally is known from the onset of the contract, most companies require this before allowing a claim on a treaty. In rare cases however, companies may have some treaties consisting of different claims basis. These, the user might not know until receiving the claim. The user then records the claim basis on the claim itself rather than on the treaty. Applicable for: P&C, Life
Deposit Released in Same Acct. Next Acct. Year	Selected: The deposits retained will automatically be released in the same accounting period next year as the accounting period it was retained this year. Cleared: In the Deposit Conditions, the user can select between the following options: * Release In: Next Account (default) * Release In: Same Accounting Period in Next Accounting Year. Relevant when: Some companies require that deposits are retained and released in the same accounting period each year. Applicable for: P&C
Allow Deposit Calculations to Frozen	Selected: The user is allowed to define premium and loss deposits released and retained to be the same amounts in all accounts for an agreement. (The Freeze Deposit Calculation field becomes available on the Deposit Conditions.) Cleared: It is NOT allowed to force the premium and loss deposits released and retained to be the same amounts. Relevant when: Some companies may e.g. have many old businesses with little movement and want to allow freezing the deposit released and retained. Others require to accurately account for all movements. Applicable for: P&C
Account Group Mandatory For Definite Life Cycle Status	Selected: The system requires an account group before accepting a ‘Definite’ life cycle status on a business. The validation takes place when the user creates a new business, changes the lifecycle status, copies a business, or changes an account group. Cleared: The system allows definite businesses without an account group. Relevant when: Companies which do NOT accept balances without an account group, may find it helpful to ensure that all definite businesses have an account group. Applicable for: P&C, Life
Prevent commutation if open deposits or reserves	Selected: The system will check if ‘Unreleased’ Deposits, Non-Liquid Deposits, Cash Claims, Premium Due Later and/or Reserves exist on the Business Ledger when trying to commute the business (refer to option ‘Commute Business’ on the Partner tab). If exist, the Insured Period(s) of the business cannot be commuted. Cleared: The Insured Period(s) of the business can be commuted also when Unreleased’ Deposits, Non-Liquid Deposits, Cash Claims, Premium Due Later or Reserves exist on the Business Ledger Relevant when: You select the parameter when you want the system to check for Unreleased’ Deposits, Non-Liquid Deposits, Cash Claims, Premium Due Later or Reserves before commuting the Insured Period(s) of a business. Applicable for: P&C, Cede, Life
Allow Revoke Commutation when Account is booked/commuted	Selected: The user is allowed to ‘Revoke’ an Account which is already booked or commuted. Cleared: The user is NOT allowed to revoke an Account which is already booked or commuted. Revoke of an Account not already booked/commuted is still possible. Relevant when: You select the system parameter when you do not want the system to check if bookings exist or not when user wants to remove the commutation status/revoke commutation/enter new commutation information in the following situations: 1) The Commutation Status on the Business ‘Partner’ tab for a proportional Retrocessionaire’s Participation is ‘In Progress’ (option ‘Business to be Commuted’ has been selected from the ‘Partner’ tab/Periodic Functions ‘Business Mass Commutation’) and the user wants to ‘Revoke Business to be Commuted’/‘Revoke’. 2) The Commutation Status is ‘Commuted’ (i.e. the Commutation Multi Businesses order has been run for the Retrocessionaire’s Participation) and user wants to revoke commutation details (from the business ‘Partner’ tab or from the Periodic Functions ‘Business Mass Commutation’). 3) User wants to re-enter commutation details by selecting the option ‘Business to be Commuted’/‘To be Commuted’ (status is automatically set to ‘Revoked and in Progress’). Applicable for: P&C, Cede
Validate Account Group on Outward- Inward Business	Selected: SICS validates the Account Group on the Assumed Business against the linked Account Group for Outward defined in the system parameter (in the Account Group Link Table) when adding a Protection Assignment on the Assumed Business. An Account Group assigned to an Outward Cedent Contract is inherited to the Placements. When realizing a Fac Retrocessionaire on a Fac Assumed Business the system automatically sets the Account Group on the Fac RP Cleared: When adding a Protection Assignment on the Assumed Business the system will not validate the Account Group on the Assumed Business against the linked Account Group for Outward. Relevant when: The Inward Account Group are linked to the Outward Account Group on the System Parameter (in the Account Group Link Table) and user adds Protection Assignment on Assumed Business either manually or by selecting Generate Automatic Protection Assignment. Applicable for: P&C, Life
Require Complete Registration	Selected: Assumed contracts, outward cedent’s contracts and belonging placements are not open for accounting, creation of amendments, new claims, or renewal before the contract is marked as complete. When the complete status is set, the possibility to make updates to terms and conditions require special authorization, unless made as part of an amendment. It is possible to set a contract to definite, even if the contract data entered is not complete. Cleared: The contract is considered as complete as soon as it has a definite status and the user is allowed to make Accounting, Claims Attachment, Amendments and Renewal. Relevant when: Some companies want to make sure that all relevant terms and condition are registered before e.g. making bookings, and to limit the possibility to make updates on contracts marked as complete. Applicable for: P&C, Cede, Life
Require Accounting Classification	This system parameter will be enabled when ‘Require Complete Registration’ is selected. Selected: The system stops the user from selecting registration complete if the accounting classification will be missing at the lowest section hierarchy level (Leaf section) of a definite assumed business. Cleared: The system allows the user to select the registration complete, even if there is missing accounting classification at the lowest section hierarchy level (Leaf section) of a definite business. Relevant when: To ensure that a contract is ready to be processed, e.g. to be booked on, some companies require first that a selected set of terms and conditions are registered and that registration has been set to complete. Yet other companies might further require that also the accounting classifications have been recorded before allowing the registration to be set to complete. Applicable for: P&C, Cede
Allow Update of User Defined Fields after Registration Complete	Selected: The user may create and update user defined fields even if the contract is marked as complete. Cleared: When the contract is marked as complete, the user can only update the user defined fields if doing it as part of an amendment, i.e. they are restricted in the same way as other business conditions. Relevant when: The User Defined Fields include e.g. information not covered by ’normal’ conditions or internal information. Your company may want that users should have the possibility to enter this information also after contract is considered complete. Applicable for: P&C, Cede
Amendment Requires Complete Registration	Selected: Amendments on assumed contracts, outward cedent’s contracts and belonging placements are not open for accounting, creation of new amendments, new claims, or renewal before the last amendment is marked as complete. When the complete status is set on the last amendment, the possibility to make updates to terms and conditions as part of amendment require special authorization unless made as part of a new amendment. This parameter can only be selected if parameter ‘Require Complete Registration’ is selected. Cleared: The amendment is considered as complete as soon as it is created and the user is allowed to make Accounting, Claims Attachment, Amendments and Renewal. Relevant when: Some companies want to make sure that an amendment are correctly registered before allowing to process it further. Applicable for: P&C, Cede
Prevent Completion Before Period Start	Selected: Assumed contracts, outward cedent’s contracts and belonging placements cannot be set to complete before its period has been reached. I.e., today’s date must be equal to or greater than the contract’s insured period start date to be able to set registration to complete. This parameter can only be selected if the parameter ‘Require Complete Registration’ is selected. Cleared: The system does not check if today’s date is equal to or greater than the contract period start date when setting the registration to complete. Default: Cleared Relevant when: Sometimes there are regulatory requirements stating that a contract cannot commence before today’s date has reached the contract’s start date. Applicable for: P&C, Cede
Categories Allowing Only One Reporting Unit	SICS lets you register a contract with one or several reporting units per category e.g. profit centers or segments. Some reinsurance companies require that contract sections are categorized with only one reporting unit for certain categories. To define reporting unit categories that should allow only one reporting unit on a finished registered contract: 1. Open System Parameters and navigate to Business/Conditions/Miscellaneous 2. Select the Edit button 3. Select Require Registration Complete if not already selected. 3. In Categories Allowing Only One Reporting Unit, select Edit from the pop up menu. 4. Select the reporting unit categories that should allow only one reporting unit. 5. Select Save Values: * Profit Center * Segment Code * Additional values may be set up in Reference Data Type: Reporting Unit Category (Code 00042) Functional Impact: Set contract registration complete Relevant when: Reinsurance companies may reflect how their business is divided internally according to their reporting structure by use of the SICS reporting units. Some companies require that contracts are categorized only with one reporting unit per category to avoid double counting. To improve data quality, you may choose to allow no more than one reporting unit for chosen categories. Applicable for: P&C, Cede, Life
Flag Registration Accuracy Check	Selected: When a new contract becomes definite, the system automatically flags this with the label ‘N’ (new). This flag appears on the definite life cycle status icon. Having the ‘N’ flag means that the contract has not yet received a closed worksheet. As soon as the business ledger receives a closed worksheet for an actual account (not estimate), the system automatically removes the ‘N’ flag. Whether the ‘N’ flag is present or not is reportable. Cleared: The system will not flag new definite contracts, without bookings, with an ‘N’ Relevant when: Most companies want to make sure that an extra check is made to verify the registration accuracy against the very first accounting documents that are received. This functionality may help making this work flow more effective. Applicable for: P&C, Cede
Automatically Amend Contract Information	When a user creates a new amendment on a contract, the system will automatically link this to the Auto Amendment Group(s) selected in this system parameter. These are groups of contract terms and conditions. If no group has been selected, the system will not automatically link any amendment. The user must then manually link the amendment to one or more sets of terms and conditions. Activating this function has major impact on all contracts in the system as all terms and conditions will then be linked to all contract amendments. Thorough analysis and considerations should therefore taken in advance of taking such action. Values: * Share, Limit and Premium Conditions (Share Condition, Premium and Limit Main Conditions, Deposit Premium Condition, Flat Premium Condition) * Other Conditions (Commission Conditions, Brokerage Conditions, Other Deductions, Reinstatement Conditions, Claim Conditions, Rebate Conditions, Deductibles Conditions, Profit Commission Conditions, Cancellation Conditions, Index Clause Conditions, Clauses Conditions, Underlying Business) * Business Classifications * Administration Conditions * User Defined Information * Protection Assignment (Proportional and Non-Proportional Protection Assignment) Default: Cleared Validations: Multiple values allowed Relevant when: Most companies need a contract amendment to be linked only to those terms and conditions that changed as part of a created amendment. Some companies have however other applications than SICS that work with complete versions after each contract amendment. To interface, the task for these could be easier if in SICS, all existing conditions were automatically linked upon creation of an amendment. Applicable for: P&C, Cede
Defaults Enabled	Selected: The default values entered for the parameters Paid Losses % and Reserves % will apply. Cleared: The default values entered for the parameters Paid Losses % and Reserves % will NOT apply Relevant when: You require to default the LAE Paid Losses % and the LAE Reserves % to all new proportional facultative retrocessions or you require to discontinue this defaults. Applicable for: P&C, Life
Paid Losses (%)	The percentage that the system defaults to the Paid Losses % in the Claim Condition/ Loss Adjustment Expenses when the user creates a new proportional facultative retrocession. Values: Percentages. Number of decimals: 2 Relevant when: The LAE Paid Losses % is normally the same for all proportional facultative engineering retrocessions. Applicable for: P&C, Life
Reserves (%)	The percentage that the system defaults to the Reserves % in the Claim Condition/ Loss Adjustment Expenses when the user creates a new proportional facultative retrocession. Values: Percentages. Number of decimals: 2 Relevant when: The LAE Reserves % is normally the same for all proportional facultative engineering retrocessions Applicable for: P&C, Life
Claim Basis Mandatory for Facultative Bus per MCOB	If an agreement has one of these main classes of business, the user has to select a claims basis on the agreement before he/she is allowed to record a claim. The parameter applies only to facultative businesses.When Claim Basis is mandatory, the value “None” is not sufficient. Values: All Main Class of Business defined in your reference data maintenance. Relevant when: Although it is NOT normal to specify the claims basis for facultative business, for some main classes of business it is. For these you may require the claims basis. Applicable for: P&C
Enable IPT Functionality	Selected: Enables the *Class of Insurance/Risk* system parameter. In SICS, the Deductions property appears in the list of properties of the Country Property window (Reference Item folder/Locations window/ Country Property window ). Cleared: Disables the Insurance Premium Tax functionality. Relevant when: Your company writes direct policies in countries where Insurance Premium Tax applies. Applicable for: P&C, Cede
Class of Insurance/Risk	The additional classification type your company uses for class of insurance/risk. Values: All additional classification types. Validations: The Enable IPT functionality checkbox must be selected. Relevant when: Your company writes direct policies in countries where Insurance Premium Tax applies. Applicable for: P&C, Cede
‘Negative Deduction Percentage - Deduction Type’	Selected: System accepts a negative percentage value in addition to 0 and a positive percentage value for deduction type identified as part of the system parameter. Cleared: System does NOT accepts a negative percentage value for deductions. Relevant when: Our company have some specific outward reinsurance contracts where it is a need to define some Deduction percentages as both positive and negative. Applicable for: P&C, Cede
‘Auto-populate the details on reserve condition’	Selected: This system parameter will auto-populate details as default values in reserve condition, in order to provide pre-filled details on the reserve condition on all level/types of business. These auto-populated values are changeable. Cleared: This system parameter will NOT auto-populate default values in reserve condition so that the user can manually enter the same information on the reserve condition on all level/types of business. Relevant when: When the user wants to avoid manually entering the same values on the reserve condition for similar agreements. Applicable for: P&C

Set Up Business Conditions Required for Definite Status #

To ensure data quality and consistency of definite agreements, it is possible to customize the mandatory minimum data for definite business per type of business.

To select the information to be mandatory for a business to become definite:

Open System Parameters and navigate to Business/ Conditions
Open the Conditions window in edit mode
In the Business Conditions Required for Definite Status section, select wanted Type of Business from the drop-down
Select the information that is mandatory for this Type of Business
Click OK

	Description
Limit Premium Conditions	Selected: The user will not be allowed to set a business to a definite Life Cycle Status, unless there are limit and premium conditions present on the business. Cleared: The business can be set to a definite life cycle status without limit and premium conditions being present on the business.
Proportional Protections 100 Percentage	Selected: The user will not be allowed to set a business to a definite Life Cycle Status, unless its proportional protection is 100%. Cleared: The business can be set to a definite life cycle status without its proportional protection being 100%.
Cession Basis	Selected: The user will not be allowed to set a business to a definite Life Cycle Status, unless the Cession Basis is present within the Administration Conditions of a business. Cleared: The business can be set to a definite life cycle status without Cession Basis being present on the business.
Accounts Generated	Selected: The user will not be allowed to set a business to a definite Life Cycle Status, unless an accounts schedule is present within the Administration Conditions of a business. Cleared: The business can be set to a definite life cycle status without an accounts schedule being present on the business.
Deduction Conditions	Selected: The user will not be allowed to set a business to a definite Life Cycle Status, unless there are deductions conditions present on the business. Cleared: The business can be set to a definite life cycle status without deductions conditions being present on the business.
Contract Certainty Check List	Selected: The user will not be allowed to set an assumed business to a definite Life Cycle Status, unless the Contract Certainty Check List is completed on the same business. Cleared: The assumed business can be set to a definite Life Cycle Status without completing the Contract Certainty Check List on the same business. Examples of cases where the user will be stopped without the presence of the mandatory information are: * Change of life cycle status: Can only be changed to definite after mandatory information entered on status to be changed. (Mandatory information not part of change of status wizard.) Note! If requiring 100% Proportional Protection and assumed needs fac protections, please create fac protections in non-definite status before changing assumed status to definite. Then change status of fac protection to definite.) * Creation of new business from scratch: Most information can be defined as part of create new assumed business wizard by reference data type New Business Wizard Pages. * Placement of business: If all mandatory information are inherited from the parent business, (e.g. outward cedent’ contract), sub business (e.g. retrocessionaire) can be set definite directly. If not, it must be created with other status, e.g. offer. * Copy of business: If source business has mandatory information that is copied, user may set new business to definite directly. If not, user must choose other status. * Renewal of a business: If all mandatory information present on period renewed from, business can be renewed to definite directly. If not, choose other status. Note! If proportional protection = 100% required for definite business, renewal will not be possible to definite status, unless protection copied, which requires system parameter ‘Copy Own Retention and Prop OCC on AB renewal’ selected. Still, if facultative protections present, these will not be copied, and consequently protection on new period is not 100%. Relevant when: Your company for example requires a minimum level information for accepting a business. (Note: This is just an option for making a business definite. For mandatory requirement options for creating a new business, see Base Company Specific Settings.) Applicable for: P&C, Cede

Limit and Premium #

limit&premium_new.png

	Description
Manual Rate on Line	Selected: The system automatically calculates the Rate on Line (ROL) from the EPI and Cover for non-proportional treaties, (on the Premium and Limits Conditions). With this parameter selected, the ROL can however be manually overridden. A check box next to the ROL field appears if the user can manually change it. Cleared: The system automatically calculates ROL from EPI and Cover and cannot be manually changed. Relevant when: Your company might allow the underwriter to enter a rate on line, which is non-proportionate to the EPI and Cover. The reason might be that he/she for example enters another EPI than the system calculates and therefore gets another ROL calculated. He/she still wants the original ROL and types it therefore in. Other companies might not allow the ROL to be non-proportionate to the EPI and Cover. Applicable for: P&C
Annual Premium	Selected: Annual option on Premium Limit condition is defaulted to selected when creating new business. Cleared: Annual option on Premium Limit condition is defaulted to cleared when creating new business. Relevant when: In Premium condition for a facultative/direct business you can enter, maintain and view Annual Premium in addition to the Period Premium. In some cases however, the premium is only given for the period. You clear this system parameter to set Annual Premium option in Premium condition to cleared, and thereby removing Annual Premium columns from the business. Applicable for: P&C, Cede
Flat Premium default on MGU Business Direct and Fac	Selected: Premium Type is defaulted to Flat Premium when recording the Premium and Limits conditions for an MGU Business. This is only applicable when MGU (Managing General Underwriter) functionality is in use. Cleared: Default Premium Type is Fixed Rate for non-proportional MGU Business and Proportional for proportional MGU Business. Relevant when: The majority of your MGU Businesses have Flat Premium. Applicable for: P&C
Prohibit Premium Instalment Dates Prior to Insured Period	Selected: The system stops the user from updating the premium instalment Due Date and Payment Date to a date earlier than the Insured Period From Date of the contract. Cleared: (default) The system allows update of the premium instalment Due Date and Payment Date to a date earlier than the Insured Period From Date. Relevant when: Normally the first premium instalment is due at the start date of a contract, or after, but not before. To improve data quality, some companies want to prohibit instalment dates prior to the start of a contract. Others want to minimize number of error messages given and allows for exceptions here. Applicable for: P&C, Cede
Global Credit Terms for Premium Instalments	Selected: When no Premium Payment Warranty or any other Credit Terms are applicable to the Business, the number of Days, Months or Years recorded here are defaulted to the Premium Instalment Conditions of the business. They are defaulted to the Payment of First Instalment and Payment of Subsequent Instalment when the Instalment Conditions are opened for the first time and no Instalments exist. This parameter is applicable to inward business only, e.g. Assumed Business, Cedent’s Contract, and only the ones without a parent business. Cleared: Payment of first Instalment and Payment of subsequent Instalment on the Instalment condition are blank/empty when neither Premium Payment Warranty nor other Credit Terms are applicable to the Business. Relevant when: Sometimes there are Credit Terms for premium instalments that are general and not depending on the Business Partner with the Payment Task or the Domicile Country of the Cedent or Broker. Applicable for: P&C, Cede
Special Acceptance Instalments for Assumed Non-Prop Treaty	Selected: A new tab named Special Acceptance Premiums becomes available between the Instalments and Adjustments tab on the Limit and Premium Conditions for Assumed Non-Proportional Treaties. On this tab premium(s) for Special Acceptance(s) can be recorded. Also on the Premium Accounting window a new tab named Special Acceptance Premiums becomes available, from where the Special Acceptance Premiums can be booked. Cleared: The Limit and Premium Conditions will have the ordinary instalments and adjustments tabs only. Relevant when: Sometimes special acceptances are made to a non-proportional treaty contract as an alternative to facultative reinsurance. It can for example, be inclusion of a risk which is not covered under the treaty, or extension of the limit of a risk which exceeds the treaty limit. An additional agreed premium is often applicable to a special acceptance. The aim of activating this parameter is to have this additional premium recorded as special instalment(s). Applicable for: P&C, Cede

Exclude from Pro Rata Premium Calculation #

The premiums agreed for insurance or reinsurance contracts often relate to a time span - the insured period. When this period changes, the premium changes accordingly. The premiums in SICS relate to the insured period (or effective period if the premium has been amended) and is in general automatically calculated if the period changes. Single risks (insurable object cessions or declarations) do however have attachment periods and the premium might instead relate to these. The attachment periods can be different from the insured period or effective period. As SICS does not have any pro rata calculation related to attachment periods, some want to exempt the cessions and declaration from pro rata calculation.

Other companies feed premiums purely from an external system for all or some of their portfolio. Automatic pro-rata calculation of premiums for these businesses might not be wanted. This is often the case for direct policies in a cede scenario, where the policies are coming from an external system.

For the above reason, the system provides for the possibility to define (per level of business) removal of the pro rata calculation for sections (main and sub), or only for cessions and declarations.

To select level(s) of business where sections (main and sub) should be excluded from pro rata calculation:

Open up Business/Conditions in edit Mode.
Select Edit in the pop-up menu of the Level of Business - Section container.
Select one or more of the Available levels of business, and use the arrows to move to Selected

To select level(s) of business where cessions and declarations should be excluded from pro rata calculation:

Open up Business/Conditions in edit Mode.
Select Edit in the pop-up menu of the Level of Business - Cession/Declaration container
Select one or more of the Available levels of business, and use the arrows to move to Selected

Default Sum-Up Options #

Set default sum up options for a Main Class of Business:

Click the Edit button on the Miscellaneous Tab
On the menu, select Add Main Class of Business
In Add Main Class of Business select wanted Main Class of Business.
Set default sum up options for premiums and or limits
Click Save
Click OK.

	Description
Main Class of Business:	Indicates which main classes of business you want the limits and/or premiums to be sum up for. Values: Customised by your company, e.g. Liability, Property Validations: More than one Main Class of Business can be selected, however they need to be saved with their sum up options one at the time.
Limit Default Sum Up	Selected: System defaults sum up flag of limits to yes on all business of the selected having the selecting main class of business. The user can override this for each individual limit.
Premium Default Sum Up	Selected: System defaults sum up flag of premiums to yes on all business having the selected main class of business. The user can override this for each individual premium. Relevant when: If sum-up/ not sum-up of premium and limit values is most common for a specific main class of business. Applicable for: P&C
General Defaults: Limit Sum-Up	Selected: The system sets the Sum-up flag automatically to Yes for all limits that can be summed up. This can be manually changed to No on the business. Note! That the general default limit sum up is overruled for by any Main Class of Business with default sum up option for limit set to No. Cleared: Default value in limit sum-up is No if not overruled by default sum up option per Main Class of Business. Relevant when: Sum-up of limit values is most common. Applicable for: P&C
General Defaults: Premium Sum-Up	Selected: Sum-up is automatically set to Yes for all premiums that can be summed up. This can be manually changed to No on the business. Note! That the general default premium sum up is overruled by any Main Class of Business with default sum up option for premium set to No. Cleared: Default value in premium sum-up is No if not overruled by default sum up option per Main Class of Business. Relevant when: Sum-up of premium values is most common. Applicable for: P&C

Conditions - Life Specific #

The previous section described system parameters out of which some were specific to P&C and some apply to both Life and P&C. There are some that are specific only to SICS Life and are visible only in SICS Life. The following section describes the ones pertaining to business conditions that are specific to only SICS Life.

	Description
Definite Status Require all Business Conditions	Selected: The user will NOT be able to change the Life Cycle Status of a business from Pending to Definite until he/she has recorded all the business conditions (except the User Defined Information.) Cleared: The user does NOT have to record any specific business conditions to make a business definite, (except Share Condition) Relevant when: Your company for example requires minimum level information for accepting a business. (Note: This is just an option for making a business definite. For mandatory requirement options for creating a new business, see Base Company Specific Settings.) Applicable for: Life
Requires Registration Complete	See section Require Registration Complete above. Selected: The Assumed Business and outward cedent’s contract are not open for accounting, renewal and cession handling unless the Registration Complete flag is set. Once the Registration Complete flag is set, it will not be possible to make any updates on the business conditions and any update will need to be made through an amendment when the domain restriction Business Update after Registration Complete is in defined. Cleared: The Registration Complete option is not available on the business, and the accounting and cession handling can be done on any definite business. It will also be possible to make updates to the business conditions without requiring amendments Applicable for: Life
Activate SAR Calculation Basis	This system parameter allows the user to define various Sum at Risk calculation basis and specify the calculation basis rule which will be available for selection in the Sum at Risk condition of the business. When the rule is to apply for a Ceded Cession, then the %isCeded variable will be required to be part of the calculation rule Selected: SAR Calculation Basis Rule under Business–> Conditions becomes available for input and these values will be available on the business SR condition Not selected: No Sum at Risk Calculation Basis rule will be applicable Applicable for: Life
Enable Flexible STP	When this system parameter is selected, the user will be able to override certain conditions on the Single Treaty Protection which have been inherited from the Assumed Business. These values will then be used while calculating the Account Costing Items on the retrocession cessions on the placement level. Selected: Allowed to Override some inherited conditions on the STP and the ACIs on the cessions can be calculated based on the STP condtions Cleared: All conditions on the STP are inherited from the assumed business and cession calculations are As Original Applicable for: Life
Display Recapture Provisions on Cancellation Provisions Condition	Selected: A tab lablelled ‘Recapture Provisions’ is made available with some informational fields on the Cancellation Provisions condition on a business Cleared: The tab will not be visible Applicable for: Life
Show Composite Limits	Selected: On the RL condition, when the option Composite Limits is selected under the Underwrititng Authority Limits, a set of informational fields will be made available Cleared: No informational fields will be made available when Composite Limits is selected Applicable for: Life
Show Section Additional Dates	Selected: On the Section Properties informational fields for validity of each section will be made available. This is relevant when a specific section is deemed to be valid only for a specific period within the insured period of the business Cleared: No additional informational fields will be made available on the sections and the section Applicable for: Life
Show Share Condition	Selected: An additional tab labelled Other Cedents Share will be made available on the Share Condition of the business. It will be possible to define all the other cedents and their share in case of coinsurance business. This will be informational Cleared: The tab will not be made available on the Share Condition Applicable for: Life
Reopen Definite Amendment	Selected: When this system parameter is selected, it will be possible to reopen an amendment that has been set to definite if the user has the required security access rights. Cleared: The option to Reopen a Definite Amendment will not be enabled Applicable for: Life
Allow Lookup Table Updates to affect all Linked Business	Selected: When this system parameter is selected, the latest updated version of the Lookup Table will be applied to all the businesses to which it is linked. All cessions that refer to the table will be processed using the the current table’s rates. Cleared: The current version of the table after it has been updated will only be applicable to any new business condition to which it is linked to. Applicable for: Life
Allow Multiple Premium Rate Tables	Selected: When this system parameter is selected, the option ‘Multi Prem Rate Table or Value’ will be available for selection under the Rates/ Amount Option on the Proportional Premium Condition of the business. The usere will then be allowed to add or import and add more than one rate table and apply a calculation rule as defined on the ‘Prop Premium Calculation Rules’ to the premium calculation on the cession . Cleared: The option ‘Multi Premium Rate Table or Value’ will not be available for selection on the Prop Premium Conditions. Applicable for: Life

Account Group Link #

Inward and Outward Account Groups may be linked together

Open System Parameters and navigate to Business / Account Group Link
Open in Edit mode
Click on wanted Inward Account Group
In Outward Account Groups, select Edit from the pop-up menu
Select the Outward Account Group(s) you want to link by moving it/they from the Available to the Selected container
Click Save
Click OK

System_Parameter_Business_Conditions_Account_Group_link.png

Field description 2. Account Group Link Table

Field	Description
Inward Account Groups	The Account Groups which are assigned to Inward business in the Reference Data Account Group table 225. Values: All Inward Account Groups defined in your Reference data maintenance Validations: Manual input NOT allowed.
Outward Account Groups	The Account Groups which are assigned to Outward business in the Reference Data Account Group table 225. Values: All Outward Account Groups linked to the selected Inward Account Group. Relevant when: when linking is required between Inward Account Group and Outward Account Group Applicable for: P&C, Life

Premium Reserve and Deposit Calculation Methods #

Enter the percentages to be used for proportional treaties with calculation method Percent Table

Open System Parameters and navigate to Business / Premium Reserve and Deposit Calculation Methods
Open in Edit mode
Enter your percentages in the Percent Value column.
Click OK

System_Parameter_Business_Conditions_Premium_Reserve_and_Deposit_Calculation_Method.png

Field description 3. Define Premium Reserve and Deposit Calculation Methods

Field	Description
Percent Values:	The percentages to be used when a proportional treaty has calculation method Percent Table for premium reserves and premium deposits, (defined on the Premium Reserve and/ or Premium Deposit Condition). The system uses these when running the retrocession calculation order. Values: Percentages Number of decimals: 2
Calculation Basis:	The alternative calculation methods selectable on the Deposit and Reserve conditions. Validations: Manual input NOT allowed. Year Number: The accounting year that the percentage refers to. Validations: Manual input NOT allowed. Relevant when: The table of calculation methods is relevant when you have agreements where the reserves and deposit percentages vary over accounting years and are calculated on the basis of cumulative premiums. Applicable for: P&C, Life

Field

Description

Percent Values:

The percentages to be used when a proportional treaty has calculation method Percent Table for premium reserves and premium deposits, (defined on the Premium Reserve and/ or Premium Deposit Condition). The system uses these when running the retrocession calculation order.

Values: Percentages

Number of decimals: 2

Calculation Basis:

The alternative calculation methods selectable on the Deposit and Reserve conditions.

Validations: Manual input NOT allowed.

Year Number: The accounting year that the percentage refers to.

Validations: Manual input NOT allowed.

Relevant when: The table of calculation methods is relevant when you have agreements where the reserves and deposit percentages vary over accounting years and are calculated on the basis of cumulative premiums.

Applicable for: P&C, Life

Classifications #

On this subtab you can alter the functions available for handling the business classification of an agreement.

Field	Description
Legal Area Validation in Classification	Selected: SICS only presents the states/ state groups relevant for the selected country( ies), i.e “States”/ “State Groups” depend on “Country”. This means that a country must be entered before you can select state/ state group. The selected country can, however, be removed afterwards as a state is sufficient as a legal area. Cleared: The system presents all states/ state groups independent of country (not necessary to select a country first) Relevant when: DXC recommends that this system parameter is cleared for normal use. For example, if your company accepts business from the U.S., you usually classify the business with states or state groups only and not with the country. For internal reporting reasons however some companies require also the belonging country. Applicable for: P&C, Life
Mandatory Surplus No.	Selected: The system will force the user to register a value in the field/column for Surplus No. Cleared: The system will allow the user to register a value in the field/column for Surplus No., but value is not mandatory and field/column can be left empty. Relevant when: The field is presented for all proportional businesses, having the Type of Participation/Reinsurance Product ‘Surplus’. It is also presented in the Proportional Part of Reinsurance Program and Protection Program. Applicable for: P&C, Life, Cede
Default Additional Classification	On a contract, the system defaults an Additional Classification of this category based on the contract’s Class(es) of Business and/or Type of Participation. The default is according to the Class of Business/Type of Participation combination set up in the reference data. The system defaults this only if the combination has one child Additional Classification value. Values: Additional Classifications Types set up in the reference data Validations: One value allowed Relevant when: Classifying a contract correctly might be time consuming and not obvious to the user. To make this process less time consuming and the classification of business more correct, companies might use this automated entry of classifications. Applicable for: P&C, Cede

Field	Description
Use Additional Classification as Main Class of Business	Selected: The system opens up a list for selecting Additional Classifications as Main Class of Business. The selected Additional Classifications from the reference data will function as the Main Class of Business. When this system parameter is activated, the additional classification that has been defined as the Main Class of Business will be available on the business classifications as the first level in the classification hierarchy, depending on how the child dependencies have been set up in the Reference Data. This Main Class of business will also be available at the time of cession handling, and the cession benefit will require the Main Class of Business in addition to the Benefit Covered and Insurance Product. Cleared: The system will not open the Additional Classifications as Main Class of Business selection list. Applicable for: Life
Classification Based on Branded Products	Selected: This system parameter becomes available for selection when the system parameter ‘Use Additional Classification as Main Class of Business’ is selected. When selected, Branded Product will be a mandatory business classification and will need to be selected first. Once selected, all other classifications that have been defined as part of the branded product classifications and are also part of the business classifications will be defaulted from the branded product that is selected. Cleared: Branded Products will not be mandatory unless defined on the Base Company specific settings, Classification Rules 2. The mandatory business classifications will need to be selected in the order of Benefit Covered and then Insurance product or Main Class of Business and then Benefit Covered and Insurance product (when only Use Additional Classification as Main Class of Business is selected) Applicable for: Life
Allow only One Type of Participation	Selected: The user cannot add more than one type of participation method per business and insured period in the “Create New Business” wizard or when editing classifications on an existing business. For example, for a proportional treaty, the user has to select either quota share or surplus, but not both. Cleared: The user can add more than one type of participation per business and insured period. An exception is when the type of participation is Stop Loss. Stop Loss can never be in combination with other types of participation. Relevant when: Although a treaty might reinsure in more than one way, e.g. both quota share and surplus, the business guidelines of a company might still say that it can not be recorded with more than one type of participation. These treaties might have to be established as two separate treaties, e.g. one for quota share and one for surplus. Applicable for: P&C
Is Alternative Classification in use	Selected: Contracts are classified with a Type of Participation and an Agreement Type which are mapped to the correct Type of Business. The mapping table is customized by the company. The Type of Business will then automatically be given based on these. The alternative classifications are shown in SICS functions normally used and seen by a SICS end user, e.g. contract’s classifications, Find Business and as selection criteria for accounting orders. Alternative classification values are not displayed in parts of the system normally not accessed by the SICS end user, e.g. as selection criteria in System Administration and Security/Domain Restriction Cleared: Standard SICS categorizing is used, i.e. contracts are, when applicable, classified with Type of Business and Type of Participation. Relevant when: Depending on focus of business and way of classifying reinsurance, companies may choose different categories. Also, some may want to classify directly on a sub level as the main category can be inferred (e.g. excess of loss is non-proportional treaty.) Applicable for: P&C, Cede

Set up mapping table: #

Define the mapping rules when alternative classification is in use:

Open System Parameter Maintenance and navigate to Business/Classifications
Select the Alternative Classification Rules button
Open in edit mode and select Add Alternative Classification Rule from the pop-up menu
Select wanted Type of Participation
Selected wanted Agreement Type
Select wanted Type of Business
Select Save
Select OK

System_Parameter_Business_Conditions_Classification_Alternative_Classification.png

Field	Description
Enlarge Business Program Classification from Linked Business	Selected: The user may add classifications to a Protection program / Reinsurance Program based on the classification of a belonging treaty. When the user adds a classification to a treaty in a program or assigns an existing treaty to a program, SICS always checks the treaty against the program. If the classification of the treaty is NOT a subset of the program, the user can add the missing classifications to the program automatically without cancelling the process. The system only offers this automatic feature for the classifications of the treaty that are NOT a subset of the program. Also, the system only checks classification types that are present on the program. Example: The reinsurance program (RP) and the assumed business (AB) both have the same Classification Coverage Type, but the values of the AB are not the same as the values of the RP: * The system considers the classification to NOT be a subset: Both the RP and the AB have the classification Type of Risk with value Aircraft. The user adds the value Airlines to the AB. The classification of the AB is no longer considered to be a subset of the RP’s classification. If the user chooses to enlarge the RP’s classification, the system adds Airlines to the RP. * The system considers the classification to be a subset: RP does not have the classification Type of Risk (no values). The user adds the classification Type of Risk with value Aircraft to the AB. The system considers the classification of the AB still to be a subset of the RP’s classification and offers NO possibility of automatic enlargement the RP’s classification. Cleared: When the user adds a classification to a treaty in a Protection Program / Reinsurance program or assigns an existing treaty to a program, the system checks the classification of the treaty. If the classification is NOT a subset of the program, the system stops the addition/assignment. The user must cancel the process and then add the missing classification manually to the program. Relevant when: Some times an underwriter establishes a program with an incomplete set of classifications. This might happen if for example his/her company changes its way of classifying business. There might then be treaties with old classifications. When the underwriter tries to assign these treaties to a program, they might not be a sub set of the program. Whether companies allow the program enlargement to be automatic or not vary. Note! There is a security use case for restricting access per users to this automatic process. Applicable for: P&C
Lowest classification level mandatory	Selected: The lowest value in the class of business classification hierarchy (including Additional Classifications and Additional Sub Classifications) is mandatory, independent of Base Company Specific settings. This means, that when classifying a new or existing contract, system will ensure that the lowest level for the selected line of business is selected. When this parameter is selected, values in the business classification hierarchy are presented in a tree view manner. The only values selectable in this view, are the lowest class of business classification existing for each line of business. The selectable values are clearly marked. Cleared: Values in the class of business classification hierarchy (including Additional Classifications and Additional Sub Classifications) are presented as available/selected. Mandatory classifications are as per default and Base Company Specific Settings. Relevant when: Some lines of business are detailed more than others, e.g. Property might be split into classes of business and sub classes of business while Marine only into classes of business. Some companies want in this case to ensure that the contracts are classified according to the most detailed level available. Applicable for: P&C, Cede
Reporting Unit Code must be Unique	Selected: The system validates that the Reporting Unit Code is unique i the system. Cleared: The system allows duplicate Reporting Unit Codes. Relevant when: The reporting unit name must always be unique. Often companies require also the reportingh unit code to be unique Applicable for: P&C, LIFE, Cede
Activate Principal Main Class of Business	Selected: One main class of business can be marked as the principal main class of business of a contract. If Registration Complete is in use, principal main class of business is required on main level before registration complete can be selected. Cleared: No main class of business can be marked as principal Relevant when: When a contract has more than one main classes of business, one main class of business may be more significant than the others and can be marked as the ‘principal’ main class of business Applicable for: P&C, Cede
Not allow to change classifications / inactive AC when sum of detail transactions are not zero	Selected: When the sum of detail transactions under current accounting classifciation is not zero, the system will not allow the update or amendment for the accounting classification or its related classification items if the changes cause this accounting classification invalid or inactive . Cleared: (default) The system allows the update or amendment for the accounting classification or its related classification items even if the sum of detail transactions under this accounting classifciation is not zero. Relevant when: Some companies require the sum of detail transactions under the accounting classification is zero before it becomes invalid or inactive. Applicable for: P&C, Cede
Only allow one MCOB on Leaf Sections	Selected: When setting the registration complete status to selected for a contract, the system checks that the contract has one Main Class of Business on each leaf sections. This means, it checks the sections at bottom level of the contract’s section hierarchies. If one of these sections has more or less than one Main Class of Business, the system stops the user. If there are no sections, and there is only the contract level/main section level, then the main section is the leaf section. The system will do the same check upon setting the amendment complete status to selected. Cleared: (default) The system allows more than one main class of business on any section upon setting the contract registration to complete or the amendment registration to complete. Relevant when: Some companies require that only one main class of business should exist at the bottom section level alreday at the business classifications stage, as an extra measure to avoid ‘double counting of figures’. Other companies ensure this by use of the accounting classifications only. Applicable for: P&C, Cede
Extend Classification Set up per Reporting Unit	Selected: The system enables specific classification set up in the Base Company Specific Settings/Classification Rules 2 per reporting unit. If the legal reporting unit category is in use, this category is selectable in Classification Rule 2. If there are Mandatory Reporting Unit Categories also defined in the Base Company Specific Settings/Classification Rules 1, then, in addition to the legal reporting unit category, these mandatory categories are also available for selection in Classification Rule 2. Cleared: (default) The system only allows specific classification set up per legal reporting unit or None. Relevant when: Within a company, different sets of classifications could be required for different reporting units. Sub divisions or departments of these could require other classifications than other divisions. Applicable for: P&C, Cede
Fund Type	Selected: From the drop-down list you select between different additional classifications defined in the reference data. The selected additional classification reference data type determines the additional classification to be used as a Fund Type on the Business Partner Property, Details tab and on the Country Property window. Cleared: <None> is selected in the drop-down list. No additional classifications are available on the Business Partner Property, Details tab and on the Country Property window. Relevant when: When your company wants the fund type to be set by default on assumed businesses as a business classification in the New Business Wizard. When a treaty business is created the cedent’s fund type set by default, and when a facultative/ direct business is created the country’s fund type is set by default. SICS uses the defaults only if the cedent/country is defined with a fund type and only if the additional classification defined as fund type is mandatory as a business classification for the given base company. Applicable for: P&C
Performance Management Data Return	Choose the user-defined classifications (additional classifications) that the system should interpret as relevant for PMDR They can then be recorded on the business classifications and shown on the PMDR information.
Method of Placement Type	Values: Additional classifications defined in the reference data. The selected additional classification reference data type will be used as the Method of Placement Code on the Performance Management Data Return information. Relevant when: Lloyd’s want to perform analysis by method of placement, e.g. by binder, line slip, open- direct Applicable for: P&C, Cede
Distribution Channel Type	Values: Additional classifications defined in the reference data. The selected additional classification reference data type will be used as the Distribution Channel Code on the Performance Management Data Return information. Relevant when: Lloyd’s want to perform analysis by distribution chancel, e.g. agent service company, Lloyds Asia, Lloyds London. Applicable for: P&C, Cede

Field	Description
SAR Calculation Basis Rule	Values: When the system parameter Activate SAR Calculation Basis is selected, you may set up the SAR Calculation Basis Rules. The flexible Sum at Risk Calculation Rules can now be defined and these rules will be available for selection as Calculation Basis on the Sum at Risk condition on the assumed business. When the %IsCeded variable is used, then the cession variable refered to in the calculation rule will be used to calculated the retroceded sum at risk on the retrocession for cessions where the Ceded flag is selected. Example:(#IF ( %isCeded ) #THEN (#FUNC performCalculation: ‘update-reserve’ )+( #FUNC performCalculation: ‘update-deductible’)+(#FUNC performCalculation: ‘update-salary’)-((#FUNC performCalculation: ‘update-freeCoverLimit’ )%otherGroupInfo1/100) #ELSE %sumAtRisk #END) A calculation rule defined as above will do the following when the RPO is run: 1. All the rules that have been defined with the rule name update- will update the respective fields on the cession benefit 2. The updated values will then be used to calculate the value that will be considered as the SAR for Retrocession 3. The SAR for Retrocession will then be used to process the retrocession cessions and the terms and conditions defined on the Limit Condition will be applied to the value in the field SAR for Retrocession Relevant when:* The SAR Calculation rule functionality makes it more flexible to process the retrocessions using a value that is calculated, for example when the retrocessions are to be processed using a Net Sum at Risk value or a Gross Underwriting Amount value instead of the Sum at Risk alone. Applicable for: Life
Claim Liability Calculation Rule	When the Claim Liability Basis on the Sum at Risk condition is defined as ‘Not Sum at Risk Reinsured’ this claim liability calculation rule will be applicable. Using the Cession and Claim Variables, a rule can be set to use the values from various fields of the cession or claim along with the arithmetic formula in order to calculate the outward claim recovery. This will be applicable only to outward claims that have the Ceded Paid status. Eg: The outward claim ACI for a Ceded Paid claim is calculated by applying the ceded percentage to the inward claim ACI. The Ceded Percentage is calculated using the inward sum at risk and the retroceded sum at risk. However, the calculation rule can be defined to use other fields to calculate the ceded percentage, such as Sum at Risk+ Reserve on the inward cession. Applicable for: Life
Cash Surrender Calculation Rule	The agreed formula that may be applied to the Cash Surrender Value tables is defined here using the variables, operators and functions available. All the formula that has been defined here will be available for selection to be applied to the the Cash/ Surrender Value Table that has been defined on the Proportional Premium condition of a business. Note! The formula is informational and will not be used in any actual calculation Applicable for: Life
Prop Premium Calculation Rule	When the Proportional Premium is defined as a Rate Table or as a Multiple Premium Table or when the flag ’ Rate/ Amount from Cession Benefit transaction’ is selected, a Premium Calculation Rule that will either override the rate option defined on the PM condition or apply an additional formula or a percentage to the rate or amount may be defined as a Proportional Premium Calculation Rule. Three predefined calculations under Calculated Values are also available namely ‘Split by Sum Insured Range’, ‘Premium Rate from Cession Benefit’ and ‘Premium Amount from Cession Benefit’ When Multiple Premium Rate tables are linked to the Prop Premium Condition, a calculation rule can be defined to apply specific factors or to use a combination of all the tables while calculation the premium ACIs on the cession benefit Applicable for: Life
Profit Commission Calculation Rule	It is possible to define a Profit Commission Calculation rule which can be selected on the Profit Commission Condition.Example: A rule, eg Rule A as below can be defined to calculate the Income Less Outgo based on the entry code groups for the current accounting period This rule, Rule A can then be included in the Profit Commision Calculation Rule ,where depending on the result of Rule A, the order will calculate the profit commission as either 50% or 80% of the calculated value. Applicable for: Life

Protection #

This sub tab provides options affecting Protection Assignment of business.

Options for Automatic Protection #

There are three alternative options, relating to Single and Multi Business Auto Protection.

Field	Description
Exceeding Proportional Program Limit Restricted	Selected: (Default) Automatic Protection Assignment will react when the Main Limit of a policy/business section is exceeding the highest Proportional Limit of the potentially protecting OCC’s. * Single Business Auto Protection: * The system triggers a warning when the Main Limit of policy/business section is exceeding the Proportional Program Limit * The system still proposes protection calculated based on the available capacity and user is allowed to save the result * Multi Business Auto Protection: * Auto protection of a policy/business is cancelled if the Main Limit of a section is exceeding the Proportional Program Limit * The policy/business is listed as Failed Assignment, identifying the relevant section * When order is run with Save, the policy/business insured period is updated as exempt from auto protection until necessary manual updates are made * With this option the Outward Cedent’s Contract Attachment Method is NOT considered neither in Single nor Multi Business Auto Protection. (‘In force’ functionality does not apply). Cleared: One of the other available options apply, depending on the selected choice Relevant when: A company has the following requirements * To be warned about exceeding limit, but still be allowed the choice of saving the result when working on a single policy/business * To make sure policies that might require facultative protection are exempt from auto protection when protecting multiple businesses in one go Applicable for: P&C, Cede
Exeeding Combined Program Limit Restricted	Selected: Automatic Protection Assignment will consider b oth Proportional and Non Proportional limits of the protecting Outward Cedent’s Contracts when validating if the policy/business Main Limit is exceeding the Program Limit. * Applies to both Single and Multi Business Auto protection * If the Main Limit of inward business section is exceeding the Program Limit, the auto protection calculation is stopped for the entire business * The message of exceeding limit identifies the relevant business section and the exceeded Program Limit currency and amount * When the Multi Business Auto Protection is run with save, the business insured periods with exceeding limit are updated as exempt from auto protection (in need of manual update, e.g. facultative protection) Cleared: One of the other available options apply, depending on the selected choice Relevant when: A company wants to make sure auto protection is stopped as long as facultative protection is needed due to a main limit exceeding a combination of proportional and non-proportional top limit. E.g. their protection programs are designed to protect proportionally up to a certain point, thereafter non proportional treaties protect everything through the proportional top limit, until a certain point where facultative protections will be needed.

Field

Description

Exceeding Proportional Program Limit Restricted

Selected: (Default) Automatic Protection Assignment will react when the Main Limit of a policy/business section is exceeding the highest Proportional Limit of the potentially protecting OCC’s.

* Single Business Auto Protection:
* The system triggers a warning when the Main Limit of policy/business section is exceeding the Proportional Program Limit
* The system still proposes protection calculated based on the available capacity and user is allowed to save the result

* Multi Business Auto Protection:
* Auto protection of a policy/business is cancelled if the Main Limit of a section is exceeding the Proportional Program Limit
* The policy/business is listed as Failed Assignment, identifying the relevant section
* When order is run with Save, the policy/business insured period is updated as exempt from auto protection until necessary manual updates are made

* With this option the Outward Cedent’s Contract Attachment Method is NOT considered neither in Single nor Multi Business Auto Protection. (‘In force’ functionality does not apply).

Cleared: One of the other available options apply, depending on the selected choice

Relevant when: A company has the following requirements
* To be warned about exceeding limit, but still be allowed the choice of saving the result when working on a single policy/business
* To make sure policies that might require facultative protection are exempt from auto protection when protecting multiple businesses in one go

Applicable for: P&C, Cede

Exeeding Combined Program Limit Restricted

Selected: Automatic Protection Assignment will consider b oth Proportional and Non Proportional limits of the protecting Outward Cedent’s Contracts when validating if the policy/business Main Limit is exceeding the Program Limit.

* Applies to both Single and Multi Business Auto protection
* If the Main Limit of inward business section is exceeding the Program Limit, the auto protection calculation is stopped for the entire business
* The message of exceeding limit identifies the relevant business section and the exceeded Program Limit currency and amount
* When the Multi Business Auto Protection is run with save, the business insured periods with exceeding limit are updated as exempt from auto protection (in need of manual update, e.g. facultative protection)

Cleared: One of the other available options apply, depending on the selected choice

Relevant when: A company wants to make sure auto protection is stopped as long as facultative protection is needed due to a main limit exceeding a combination of proportional and non-proportional top limit.
E.g. their protection programs are designed to protect proportionally up to a certain point, thereafter non proportional treaties protect everything through the proportional top limit, until a certain point where facultative protections will be needed.

Rules for what is considered to be the Program Limit:

Program Limit = H1 + H2

H1 = Highest Top Limit (Prop or Non Prop) among protecting OCC sections having Cover Basis:

*Gross
*Net After Proportional Protections
*Net After proportional Protections and Non Proportional Overflow
*Net After Non Proportional Protections and Bottom Retention

H2 = Highest Non Prop Top Limit among protecting OCC sections having

Cover Basis:

Net After Proportional Protections and Bottom Retention

Example 1:

Example 2:

Applicable for: P&C, Cede

Field	Description
In Force functionality enabled / Allow exceeding Prop Program Limit	Selected: * Automatic Protection Assignment will consider the Attachment Method entered on potentially protecting Outward Cedent’s Contract. Applies to both Single and Multi Business Auto Protection * If the system finds protections covering in force businesses or protecting reinsurance has amended classification and/or limits applying to in force business, protection assignment will be amended from the date when the protections are attaching on in force basis * No warning or failed assignment message given for exceeding Proportional Program Limit. Protections will be calculated according to the available capacity * Multi Business Auto Protection will thereby allow protection of the policy/business by non-prop protections even if the limit is exceeding the proportion program limit. Functional impact * Automatic Protection Assignment * Existing Protection Assignment Relevant when e.g.: * The company guidelines require that amended classifications and limit conditions of Outward Cedent’s Contract applying to in force business shall be reflected as amended protection assignment on the relevant policy/businesses subjected to auto protection. * The company relies on non-proportional agreements with a cover basis designed to protect part of liability exceeding the proportional protections. Applicable for: P&C, Cede

Field

Description

In Force functionality enabled / Allow exceeding Prop Program Limit

Selected:
* Automatic Protection Assignment will consider the Attachment Method entered on potentially protecting Outward Cedent’s Contract. Applies to both Single and Multi Business Auto Protection
* If the system finds protections covering in force businesses or protecting reinsurance has amended classification and/or limits applying to in force business, protection assignment will be amended from the date when the protections are attaching on in force basis
* No warning or failed assignment message given for exceeding Proportional Program Limit. Protections will be calculated according to the available capacity
* Multi Business Auto Protection will thereby allow protection of the policy/business by non-prop protections even if the limit is exceeding the proportion program limit.

Functional impact
* Automatic Protection Assignment
* Existing Protection Assignment

Relevant when e.g.:
* The company guidelines require that amended classifications and limit conditions of Outward Cedent’s Contract applying to in force business shall be reflected as amended protection assignment on the relevant policy/businesses subjected to auto protection.
* The company relies on non-proportional agreements with a cover basis designed to protect part of liability exceeding the proportional protections.

Applicable for: P&C, Cede

Sequential Risk Unit Group - Overall Program Capacity Calculation #

Auto protection offers a possibility of calculating the remaining capacity for a new member of a sequential risk unit group independent of the Base Companies and/or selected classifications protecting the other members.

Field	Description
Cumulate across Base Companies	Selected: Members of the same Sequential Risk Unit Group are considered as cumulating independent of Base Company. The system will use the Overall Program Capacity Calculation for all Sequential Risk Unit Groups. Auto Protection calculates the Remaining Capacity of a potentially protecting Prop Treaty OCC by considering the previously applied limit from the cumulating policies to all their prop treaty reinsurance. Cleared (Default): Members of the same Sequential Risk Unit Group can be considered as cumulating only if their Base Company is covered by the OCC being calculated. Relevant when: The reinsurance agreements that cover the members of a risk unit group changes base company from one year to another or a program receives a new agreement with a different base company. After restructuring their reinsurance agreements your company wants to consider previous protections within a sequential risk unit group when remaining capacity of a potentially protecting OCC is calculated for a policy that is a member of this group.
Cumulate across Classifications	Selected: Members of the same Sequential Risk Unit Group are considered as cumulating independent of the policy values of the selected Classification Types. This means that only the mandatory classifications that are not selected needs to be a subset of the OCC section being calculated. As soon as one of the Classification Types has been selected, the system will use the Overall Program Capacity Calculation for all Sequential Risk Unit Groups. Auto Protection calculates the Remaining Capacity of a potentially protecting Prop Treaty OCC by considering the previously applied limit from the cumulating policies to all their proportional treaty reinsurance.
Overall Program Capacity Calculation	Cleared: When no Overall Program Capacity Calculation is selected Auto Protection calculates the Remaining Capacity of a potentially protecting Prop Treaty OCC by considering the previously applied limit from cumulating policy sections to the OCC being calculated. Members of the same Sequential Risk Unit Group are considered as cumulating according to their effective period provided the policy section’s mandatory classification and Base Company is a subset of the OCC section being calculated. Applicable for: Cede

To select Classification Types:

Open Business/Protections in edit mode
Select one or more of the Available Classification Types and use the arrows to move to Selected

Proportional Risk Unit Group - Protection calculation frequency #

Relevant for Automatic Protection calculation of Proportional Risk Unit Group at Group level with inheritance to Policy Light members. Applies to Proportional Risk Unit Group having option Result Saved Per Group selected. The automatic protection is generated through Multi RUG Automatic Protection order.

This system parameter determines the basis of calculation and applied effective period when allocating reinsurance.

The defined frequency expresses the unit of time (period) in which to base the extraction and calculation of cumulating policies. Selected option indicates the normal frequency in which the Multi RUG Auto Protection order will be run. The order may be run more frequently, but the calculation rules for the selected option will still apply.

Field	Description
Period	Selected: The protection assignment calculation is based on the maximum accumulation of limit among the common periods (RUG PA section effective periods) for the policies cumulating with the ordered period. Default: Selected Functional impact: Automatic Protection Assignment, Multi RUG Automatic Protection Order Cleared: Other option will apply Relevant when: Risk Unit Groups with a proportional method of allocation to reinsurance shall be calculated on a periodic basis. Monthly and Quarterly period is supported, refer to User Guide chapter Create Multi RUG Auto Protection Order. Applies only to RUG with option Save Result Per Group selected. Applicable for: Cede

Field

Description

Period

Selected: The protection assignment calculation is based on the maximum accumulation of limit among the common periods (RUG PA section effective periods) for the policies cumulating with the ordered period.

Default: Selected

Functional impact: Automatic Protection Assignment, Multi RUG Automatic Protection Order

Cleared: Other option will apply

Relevant when: Risk Unit Groups with a proportional method of allocation to reinsurance shall be calculated on a periodic basis. Monthly and Quarterly period is supported, refer to User Guide chapter Create Multi RUG Auto Protection Order. Applies only to RUG with option Save Result Per Group selected.

Applicable for: Cede

Example: Order As of Period: March 2020. Order extracts and calculates RUG policies with IP cumulating at least one day with the selected period.
Let’s say these policy sections were extracted:
POL 1: 01.01.20 - 31.12.20 - Main Limit 12.000.000
POL 2: 15.03.20 - 14.03.21 - Main Limit 8.000.000
The system finds the max accumulated during the month (20.000.000). This amount is used in protection assignment calculation for the RUG effective period of March 2020.

Field	Description
Daily	Selected: Of the policies cumulating with the ordered As Of Date, the calculation will be based on the accumulated amount for each of the common effective periods (RUG effective periods) per RUG PA section. Functional impact: Automatic Protection Assignment, Multi RUG Automatic Protection Order Cleared: Other option will apply Relevant when: Risk Unit Groups with a proportional method of allocation to reinsurance shall be calculated on a daily basis with result per each common effective period (RUG effective periods). Applies only to RUG with option Save Result Per Group selected. Applicable for: Cede

Field

Description

Daily

Selected: Of the policies cumulating with the ordered As Of Date, the calculation will be based on the accumulated amount for each of the common effective periods (RUG effective periods) per RUG PA section.

Functional impact: Automatic Protection Assignment, Multi RUG Automatic Protection Order

Cleared: Other option will apply

Relevant when: Risk Unit Groups with a proportional method of allocation to reinsurance shall be calculated on a daily basis with result per each common effective period (RUG effective periods). Applies only to RUG with option Save Result Per Group selected.

Applicable for: Cede

Example: Order As Of Date: 20.03.20. Order extracts and calculates RUG policies with IP including this date.
Let’s say these policy sections was extracted:
POL 1: 01.01.20 - 31.12.20 - Main Limit 12.000.000
POL 2: 15.03.20 - 14.03.21 - Main Limit 8.000.000
RUG effective periods and accumulation amounts will be:
01.01.20 - 14.03.20: 12.000.000
15.03.20 - 31.12.20: 20.000.000
01.01.21 - 14.03.21: 8.000.000
Protection Assignment will be calculated based on the relevant amount for each RUG effective period.

Field	Description
ROE to be used for auto protection of Policy Light Life	* The parameter labelled “ROE to be used for Auto Protection of Policy Light Life” defines the rate of exchange to be used for Proportional Protection assignment calculations for ‘policy light life’ only. * The system presents a drop down, showing all the values from ref data 00202 Exchange Rate Category with parent value ‘Exchange Rate Type’ equal Day Rate or Year Rate. * System defined value ‘DR’ ‘Daily Rate’ will be set as the default and this does not change any of the current functionality, which is that the system always uses the rate of exchange valid as per the attachment period start date of the transaction to be protected. * When system defined value Year End Rate (EYR) or Provisional Year End Rate (PEYR) is selected, for Proportional Protection Assignment calculations for ‘policy light life’ the system will use as the ROE, the YEAR RATE from the year [(‘year value’ of the Attachment period Start Date) -/- 1]. This setting results in SICS always using the same exchange rate for all transactions of the Policy Light Life within one and the same year when computing how to protect any of these transactions having an ‘attachment period start date’ within that year. Functional impact: * Automatic Protection Assignment * Existing Protection Assignment Applicable for: Cede

Field

Description

ROE to be used for auto protection of Policy Light Life

* The parameter labelled “ROE to be used for Auto Protection of Policy Light Life” defines the rate of exchange to be used for Proportional Protection assignment calculations for ‘policy light life’ only.
* The system presents a drop down, showing all the values from ref data 00202 Exchange Rate Category with parent value ‘Exchange Rate Type’ equal Day Rate or Year Rate.
* System defined value ‘DR’ ‘Daily Rate’ will be set as the default and this does not change any of the current functionality, which is that the system always uses the rate of exchange valid as per the attachment period start date of the transaction to be protected.
* When system defined value Year End Rate (EYR) or Provisional Year End Rate (PEYR) is selected, for Proportional Protection Assignment calculations for ‘policy light life’ the system will use as the ROE, the YEAR RATE from the year [(‘year value’ of the Attachment period Start Date) -/- 1]. This setting results in SICS always using the same exchange rate for all transactions of the Policy Light Life within one and the same year when computing how to protect any of these transactions having an ‘attachment period start date’ within that year.

Functional impact:
* Automatic Protection Assignment
* Existing Protection Assignment

Applicable for: Cede