There are three types of automatic claims reserve calculation functions in SICS:
Balance Reserves Order General Reserves Order Financial Claim Reserve Order EachEach of these functions calculates and books the respective amounts according to its defined rules.
The result of the Automatic Booking of Claim Reserves are booked with Entry Codes defined in the System Parameter Accounting/Entry Codes/Accounting Function (refer to the Accounting Functions listed below).
The Accounting Function used for the calculations depends on the type of reserve orders you are running:
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If you want the SICS to calculate the Loss Adjustment Expenses, the conditions must be defined.
Calculate Loss Adjustment Expenses - Paid Losses # Loss Adjustment Expenses - Paid Losses, if defined, is calculated whenever you run the Retrocession Calculation order. Available calculation methods are:
None
No calculation of Loss Adjustment Expenses - Paid Losses is performed
Percent
All Loss bookings according to the Entry Code Group selected on the condition as calculation basis are multiplied with the Share of the Retrocessionaire’s and the Loss Adjustment Expenses - Paid Losses percentage.
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When required it is possible to restrict accounting for the claim (all sections) to users with specific authorization level only. When a claim has been marked as requiring additional security; an additional check within the Accounting module will validate that the accountant has appropriate authority when booking on the claim; regardless of the amount that is booked. This additional security may be linked to the Complexity level of the claim; ensuring that all claims which are deemed as complex require such security.
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When reinsuring the same risks of catastrophe, like earthquake in a certain zone, through multiple reinsurance/insurance contracts, it is important to keep track of their cumulative effect. The DXC accumulation control of insured perils facility provides a detailed analysis for this.
Depending on your system set up, the accumulation control either includes only the requested zone or the requested zone and its sub zones.
Calculate Peril Exposure Starting from Business # | Insured Peril Cession button | 1.
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eMessaging details on an insured period are accessed from the insured period tab of the business. The menu has options to create, view or edit eMessaging information.
In view mode it is possible to navigate between Insured periods using the navigation bar.
Message signed line: This attribute is copied from a TechAccount message. It cannot be changed by the user. It is the signed share percentage notified on the last message processed by eMessaging, and is only used for signed line validation in eMessaging.
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You use this condition to register how claims falling within your part of the business should be handled, how expenses should be calculated, whether interests apply and how they should be calculated, and annuity terms. Not all conditions are applicable to all types of business and the Claim Condition window varies depending on the type of business.
| Claim Condition button | Click the Claim Condition button in the Navigation bar.
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This section handles information regarding the Former Identification, some Accounting options, EDI information and the Reporting Classifications of your business.
The Reporting Classifications you will only have available if your System Administrator has set up the system this way.
When dealing with outward facultative business, you have some different options such as Active Indicator, Placement Completed and Reinsurance Category.
Maintain EDI Information on Insured Periods # You can create and view EDI information connected to an insured period by clicking the Edit Menu button in the Insured Period tab on the Business Properties window and selecting:
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The Ultimate Loss Ratio reflects the worst case scenario for a risk, and is used to calculate for example IBNR reserves. The fields can be registered in Underwriters Estimates at Portfolio Program level, and can be used in the calculation of Underwriters Estimates on linked Assumed Businesses.
In addition, you can register one or two IBNR Methods which can be used to determine the formula to be used when calculating IBNR on linked Assumed Businesses.
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In multiple stamp arrangements, one owned or managed entity in a corporation typically underwrites on behalf of another entity. When an underwriter places a share, the share is underwritten on behalf of other entities with each taking a pre agreed portion. The pre agreed apportionment can be between two or several entities.
SICS handles these arrangements by use of a joint contract representing the total share to be split between the entities (insurers/reinsurers).
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P&C support messages from the Dutch Insurance Exchange Association (VNAB.) Many of the basic principles are the same as processing EDI LIMENT messages, but there are some important differences. When processing VNAB messages there are two major factors to consider:
How to reference the messages How they will be applied. In order to book any EDI message, it is first necessary to link the message to various objects in SICS, such a currency or a business.
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