There is a possibility in the system to capture and calculate Additonal Case Reserves (ACR) for assumed claims, giving the estimated development of headline losses. To monitor the corresponding net loss, we provide the possibility to include ACR in recovery calculation.
The calculation is on top of actual incurred loss, and is booked to the Outward Claim and distributed to the retrocessionaires according to their share.
The inward ACR / ACR expense must be booked to an inward claim linked to a Headline loss, Risk loss or single Claim (incl.
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A US Quota Share treaty is a proportional protection where claim recoveries are calculated based on individual claims or headline losses; i.e. with a claims handling similar to non proportional treaties (ex A).
The protection allocation towards a US Quota Share will NOT vary depending on assumed liability and available protection - it is always set to ceded (QS) %. Claims created on the inward business insured period will inherit the policy US Quota Share Protection.
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Recovery Calculation for Aggregate XL / Stop Loss - protecting net figures for a specific portfolio # Protection of the cedent’s net loss for a portfolio during a specific period (typically a year). Figures are calculated based upon net result of bookings created at assumed business and retrocessionaires at entry codes defined under Entry Code Groups From Ground Up Paid and From Ground Up Reserve. From ground up figures are calculated by accumulating inward and outward claim bookings for the protected portfolio.
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