Inherit Conditions on Business Sections # A business can be divided into section s, cessions and declarations, and each of them can inherit business conditions and classifications
The condition information that is inherited is information entered or edited on the main section of the business. For example, if you create a section of a business that inherits Deduction conditions, when the Deduction conditions are updated on the main section where they were defined, inherited Deduction Conditions are automatically updated.
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An agreement can be split into two or more sections. A section can be further split into sub sections, which again can be split into sub, sub sections, etc.
An agreement/section can also be split into cessions and declarations (cession without insurable object).
A cession can be split into declarations, but declarations cannot be split.
Get Overview of Sections, Cessions and Declaration # Get Detailed Overview # When you click Structure tab on the business, you see the Section Overview window.
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Recovery Calculation with Indexation - Calculation when multiple base index # Index clause
UK Cost Index - Base Index Date 01/01/2011 - Contractual Base Index 100 Standard index - cover increases - payments
Limit: 400,000 xs 100,000
UK Cost index
Date Value Conversion factor 01.01.2011 100 1.0000 01.01.2012 110 1.0000 01.01.2014 120 1.0000 01.01.2014 100 1.2000 01.01.2015 110 1.2000 01.01.2016 120 1.2000 Contributing details - one recovery claim
As of date Due date Entry code Nom amt Index point Ind adj amt 31.
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Share Conditions button
Share conditions in SICS refer to the part of the reinsurance contract that specifies the portion (often referred to as the line) that a reinsurer assumes in a contract. These shares are among the most important terms in any agreement and play a central role in many administrative processes. In SICS, they are used extensively-from calculating each party’s share of premiums and claims to determining retrocession percentages.
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Losses within the same category often develop in similar ways over time. Specific patterns of loss development can help the underwriter to e.g. calculate IBNR reserves.
Loss Development Pattern selected on Portfolio Program is inherited to linked Assumed Businesses. Inherited Loss Development Pattern can be overridden on Assumed Businesses - values can be changed or a completely different Loss Development Pattern can be selected.
Register Incurred Development Curve: # Open Underwriters Estimates and select the Loss Development Pattern tab Select to open the Incurred Development Curve subtab in edit mode Click the edit button next to Loss Development Pattern field and select wanted pattern Save the selected Loss Development Pattern If required, make changes to Number of Months and values Save Register Paid Development Curve: # Open Underwriters Estimates and select the Loss Development Pattern tab Select to open the Paid Development Curve subtab in edit mode Click the edit button next to Loss Development Pattern field and select wanted pattern Save the selected Loss Development Pattern If required, make changes to Number of Months and values Save Register a second Incurred Development Curve: # Open Underwriters Estimates and select the Loss Development Pattern tab Select to open the Incurred Development Curve 2 subtab in edit mode Click the edit button next to Loss Development Pattern field and select wanted pattern Save the selected Loss Development Pattern If required, make changes to Number of Months and values Save Register a second Paid Development Curve: # Open Underwriters Estimates and select the Loss Development Pattern tab Select to open the Paid Development Curve 2 subtab in edit mode Click the edit button next to Loss Development Pattern field and select wanted pattern Save the selected Loss Development Pattern If required, make changes to Number of Months and values Save Your system may have been set up to automatically update Loss Development Curves whenever an update is made in system parameters.
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The recovery calculation excludes claim details that fall outside the scope of cover of the Outward Cedent Contract (OCC) or XL CA of Outward (XLCA). To follow up these uncovered amounts you can produce a deviation report after you have run a recovery calculation order. It displays all claim details that remain uncovered with the reason for not being recovered.
The report is applicable for Recovery Calculation for Protection Program and Single OCCs.
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SICS lets you automatically calculate Reinstatement Premium for your non-proportional Outward Cedent’s Contracts or XL CA Of Outward. The automatic calculation of a Reinstatement Premium is based upon Reinstatement Conditions, Recoveries and Premiums.
If Recovery Bookings created via the Recovery Calculation Order have been created on a sub section of an OCC, the system will calculate and book reinstatement premium on the same sub section.
Reinstatement Conditions # Click the Reinstatement Conditions button to see the Reinstatement Conditions window.
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| Non-Proportional business Rebate
Conditions button | Click the Rebate Conditions button to see the Rebate Conditions window. This is where you record the No Claim Bonus and other Rebate conditions that were part of a non-proportional treaty, proportional direct or proportional facultative business. |
Maintain No Claim Bonus # By the SICS rebate conditions, you may maintain terms and conditions regarding the discount in premium that the cedent receives for making no claim.
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Index clauses are only available for non-proportional business. These conditions allow you to record how the contract is indexed and stabilised.
You can also record information about which claims and the part of the claim figure that the index should apply to. The index clause enables you to indicate that claims shall be indexed. The index clause can be recorded on the main section of the business and will be inherited to all sub sections, or it can be recorded directly on a sub section.
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| Inuring to Benefit Rules button | The Inuring to Benefit Rules button appears only on Non-Proportional Outward Cedent’s Contracts and on Proportional US Quota Share. These conditions are mandatory in order to be able to use the Non-Proportional Recovery System (explained in the Retrocession Accounting chapter)to its full extent. The links that are created to a Program Section or OCC from this condition indicate where unrecoverable losses on this Non-Proportional Outward Cedent’s Contract or US Quota Share OCC are considered for possible recovery.
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