Handle ULR and IBNR Method

Handle ULR and IBNR Method

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.

There are two different fields for Default Pricing ULR, Additional ULR, and IBNR Method. The second fields can be used if you for example need to use different values for different reporting requirements.

Register Default Pricing ULR, Default Pricing ULR2, Additional ULR, Additional ULR 2, IBNR Method and IBNR Method 2:

  1. Open up Underwriters Estimates and open Loss Development Pattern tab in edit mode
  2. Fill in the required field(s)
  3. Save

Field Description:

Default Pricing ULR: Estimated Maximum Loss in percent of the Risk; used for pricing of the risk.

Values: Number between (0-999,9999999)

Default: None

Validations: Only available for Portfolio Program

Mandatory: No

Functional Impact: Underwriters Estimates for assumed business

Default Pricing ULR2: Estimated Maximum Loss in percent of the Risk; used for pricing of the risk.

Values: Number between (0-999,9999999)

Default: None

Validations: Only available for Portfolio Program

Mandatory: No

Functional Impact: Underwriters Estimates for assumed business

Additional ULR: Estimated Maximum Loss in percent of the Risk.

Values: Number between (0-999,9999999)

Default: None

Validations: Only available for Portfolio Program

Mandatory: No

Functional Impact: Underwriters Estimates for assumed business

Additional ULR 2: Estimated Maximum Loss in percent of the Risk.

Values: Number between (0-999,9999999)

Default: None

Validations: Only available for Portfolio Program

Mandatory: No

Functional Impact: Underwriters Estimates for assumed business

IBNR Method: Used to define the method to be used when calculating IBNR in Underwriters Estimates

Values: Any IBNR Method defined by your company

Default: None

Validations: Only available for Portfolio Program

Mandatory: No

Functional Impact: Underwriters Estimates for assumed business

IBNR Method 2: Used to define the method to be used when calculating IBNR in Underwriters Estimates

Values: Any IBNR Method defined by your company

Default: None

Validations: Only available for Portfolio Program

Mandatory: No

Functional Impact: Underwriters Estimates for assumed business