Co-insurance

If a proportion of the non-proportional claim is retained by the cedent for example, SICS allows you to take this factor into account in the FGU Calculation. The co-insurance is deducted after the Policy Deductible and can be applied to both the Limit amounts and the Claim Figures (that is all the amounts in the FGU Advisory), or to the Claim Figures only.

Co-insurance applied to Claim Figures only #

Each of the FGU Advisory figures is recalculated as follows:

FGU figure x co-insurance % = FGU figure to be applied in calculations

Cover and Excess remain unchanged. Example:

Limit 200,000 xs 100,000
Paid FGU 140,000
Co-insurance 90% - Applied to Claim Figures
Recalculated Paid FGU 140,000 x 90% = 126,000
To layer: 126,000 - 100,000 = 26,000

Co-insurance applied to Claim Figures and Covers #

Each of the FGU Advisory Figures is recalculated as follows:

FGU figure x co-insurance % = FGU figure to be applied in calculations

Each of the limit figures (either on claim limits or Business Limit condition) is recalculated in the same manner. Example:

Limit 200,000 xs 100,000
Paid FGU 140,000
Co-insurance 90% - Claim Figures and Covers

Recalculated Limit: 200,000 x 90% = 180,000
Recalculated Excess: 100,000 x 90% = 90,000
Recalculated Paid FGU: 140,000 x 90% = 126,000
To layer: 126,000 - 90,000 = 36,000

Record Co-insurance Information #

1. Open the claim for which you want to register co-insurance information.
2. Click the FGU tab.
3. Click the Co-insurance tab
4. Select Add from the Menu button
5. Specify the date from which the co-insurance information is valid.
6. Select a Co-insurance Method.
7. Specify the Co-insurance percentage.
8. Enter any remarks.
9. Click OK

Edit an Existing Co-insurance #

The edit option is only available as long as the co-insurance has not yet been applied in a FGU Calculation.

1. Open the Claim for which you want to edit the co-insurance information.
2. Click the FGU tab.
3. Click the Co-insurance tab.
4. Navigate to the co-insurance that you want to change by using the arrows next to the as-if-date field.
5. Select Edit from the Menu button.
6. Change the information as required.
7. Click OK

View the development of Co-insurance #

Since each co-insurance is associated with a date you can easily view the development by using the arrows next to the date field.

Impact on Claims when recording Co-insurance #

When you record co-insurance information this will have some impact on the claim, apart from the FGU Calculations.

• On the Claim Properties tab, the Co-insurance check box will automatically be set.
• Claim cannot be closed unless a Headline Loss assignment exists.