Handle Insured Peril Cessions

An insured peril is an insured risk of catastrophe in a certain risk zone. The insured peril cessions features in SICS enables you to effectively maintain the risks of your business and also to form the basis of accumulation control.

Note! If your system administrator has set up your system to allow for business with To be Advised insured periods, your assumed businesses might not have any insured period at all. In that case, it will not be allowed to add insured peril cessions as the attachment periods depend on the insured period. As soon as you however specify the insured period, you may add cessions. For more information, see the Maintain insured Period Information section.

Available Insured Peril Cession Items #

Your company generally decides the items available to you. More specifically, your system administrator has selected the items relevant for each category of business, so that you always see the ones relevant for the business you are working on.

The available fields can depend on the following characteristics of your business:

• Type of Business (non-proportional treaty, proportional, facultative, etc.)
• Type of Participation (quota share, surplus, etc.)
• Main Class, Class and Sub Class of Business, (property, marine, etc.)

On the cession list, your system administrator may also have defined the sequence in which you see the columns. (For example, he/she might have set up all limits to be manually updated as columns appearing before the calculated once). Also the system administrator may have decided to show only the most important information on the cession list, while you see all items on the cession details.

You may find a field name in this description under a different name in you system. This is because your system administrator may have changed the name of the field. The name should still be recognizable, as the meaning of it would be the same.

List Insured Peril Cessions for a Business #

To list the combinations of perils and risk zones covered by your agreement:

1. Open your business.
2. Click the PE (Insured Peril Cessions) button on the Navigation bar.

Create Insured Peril Cession(s) #

To add one or more insured peril cessions to your business:

1. Open your business.
2. Click the PE (Insured Peril Cessions) button on the Navigation bar.
3. Select Add from the pop-up menu.
4. Select the/those insurable perils that you require.
5. Click Save.
6. Click OK.

Note! If the insured peril cession is created on an insurable object cession, the system displays only perils with the same zone as registered on the insurable object.
If no zone is registered on the insurable object, the system displays perils covered by the cession’s country

Maintain Insured Peril Cession Information #

Add or change information valid for one or more cessions. For example you may add the exposure amount or add various limits that should form part of the exposure calculation. You may also add items only for information.

1. Open your business.
2. Click the PE (Insured Peril Cessions) button on the Navigation bar.
3. Click the Edit button
4. For a cession, enter the information that you require in the applicable column. If the added information is part of calculation of other items, the system will now calculate these items.
5. Proceed to the next column if more information should be entered.
6. Repeat the above procedure for as many cessions as you require.
7. Click OK.

If there are items that are not available to you, you might want to open the cession details. See the_Maintain Insured Peril Cession Details_ section.

Delete an Insured Peril Cession #

1. Click Insured peril cession button in Navigation bar of the selected Business window.
2. Click the Edit button.
3. Select the cession to be deleted and then select Delete from the pop-up menu.
4. Click Save.

Populate Same Value for Several Cessions #

Sometimes when you have several cessions to be created you can have same value for several cessions in a column. In order to save time you can than use this functionality.

1. Enter a value for the first cession.
2. Select Use selected value to populate from the pop-up menu.
3. Select the option that suites your purpose “All Cessions, All Cessions Below current cession, All cessions without a value, All cessions without a value below current cession.

Indicate no Business Exposures to Perils #

To show that a business is not exposed to a peril, you need to create a cession without exposure.

1. Open the Insured Peril Cession window.
2. Select Add from the pop-up menu to add insurable perils.
3. Select the insurable perils and click Save.
4. Click OK.
5. You now have a cession with 0.00 exposure. This indicates that you have selected exposure and found that there is none.

IHAGEN_SICSE-2778

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Copy Insured Peril Cessions to another Contract #

A reinsurance company may have several contracts covering the same risk zones and perils. In same cases it is therefore convenient to just copy insured peril cessions from one contract to another:

1. Open the Insured Peril Cession window
2. Highlight perils to be copied and select Copy from the pop-up menu
3. Enter Business ID or use the find facility to find the correct receiving contract
4. Select wanted Insured period, Scope of Cover and Amendment of receiving contract and press OK.
5. System opens the receiving contracts Insured Peril Cessions window i edit mode, with the copied cessions clearly marked.

When copying peril cessions, the system validates the following:

• Area - the receiving scope of cover must cover the Insurable Peril Cession(s) country
• Main Currency - same as main currency on source scope of cover
• Insured Period - the receiving scope of cover’s insured period must overlap the Valid Period of the Insurable Peril Cession(s) with at least one day
• Type of Business/Main Class of Business Combination - if registered on one/more of the Insurable Peril Cessions, the receiving contract must match this combination

Maintain Insured Peril and Limit Premium Cession Details #

Add detailed information valid for a specific insured peril cession, such as limits, deductibles time limitation and premiums, either for being part of a calculation or only for information.

1. In the Insured Peril Cession window, double-click an insured period cession to open the Cession Details window.
2. Click the Edit button.
3. Click in the display list that you want to make your changes and select Add from the pop-up menu.
4. Select the item(s) that you require.
5. Click Save.
6. Enter the needed details in the applicable column.
7. Click OK.