Handle Period Estimates on Proportional OCC

How the Period Estimates on Proportional OCCs are populated, depends on Multi GAAP system parameter Period Estimation Calculation on Prop Outward Contracts

A: When system parameter Period Estimation Calculation on Prop Outward Contracts is cleared

The Period Estimates on a Proportional OCC are fed by the estimations of the protected Assumed Business. You get an overview of these estimations on the Period Estimates tab of the Proportional OCC. (Click the button on the Navigation bar of the OCC to access the Underwriters Estimates window.) In this window bookings “as Booking” are shown for the respective Estimation Items when going into Edit mode and clicking the Calculate button. Bookings that were produced automatically from the Assumed Business are “As Original”. Therefore they cannot be seen here. To get bookings “As Booking” you have to run the Retrocession Estimation Calculation order.

Period Estimate currencies on the Proportional OCCs can be added manually, or automatically by running the Multi GAAP Recalculation Order. See the Create/Update Period Estimates Automatically chapter for further information about this Order.

Enter Estimation Complete Reason and Description. Manually register why an Estimated Item is completed.

Open Underwriter’s Estimates / Period Estimates in edit mode
Highlight wanted Estimated Item, right mouse click and select option Edit Complete Reason
Select a Complete Reason from the drop down
Enter a Description
Press Save
Press Save

View Estimation Complete Reason and Description

Open Underwriter’s Estimates / Period Estimates in view mode
Highlight wanted Estimated Item, right mouse click and select option View Complete Reason

Remove Estimation Complete Reason and Description. If entered in error an Estimation Complete Reason and Description may be removed.

Open Underwriter’s Estimates / Period Estimates in edit mode
Highlight wanted Estimated Item, right mouse click and select option R_emove Complete Reason_
Confirm removal
Press Save

Note! Manually entered Complete Reason is for informational purposes only and has no functional impact

Field Description

Currency

Currency: Currency of the displayed estimation item amounts in the right hand field.

Calculation: Selectable from SICS table with currency codes

Validations: Currency codes from ISO table

Values: three positions

Functional Impact: Currency in which the Estimated Item values are displayed on Period Estimates.

Estimated Item: The item defined in the System Parameter Maintenance for which estimation values shall be calculated and displayed.

Calculation: System generated from System Parameter Maintenance, Multi GAAP

Validations: Period Estimation Rule

Values: Alphanumeric

Functional Impact: Estimated item value is shown in the matrix between Estimated item and Period/Year.

Compl.: Indicates that the Estimated Item is completed. This means that no further estimates will be booked and existing accruals can be reversed by the Multi GAAP Retrocession Order. This flag will also stop recalculation of the Estimated Item, if set up to do so by your system administrator.

Calculation: Default value; No. Manual change to Yes.

Validations: Only options; No/Yes

Values: Alphanumeric, 3 positions

Functional Impact: Multi GAAP Retrocession Order, Multi GAAP Recalculation Order, calculation of Period Estimates

P/YYYY: Period and Year for which an estimated amount is calculated. The period refers to a quarter or a month, depending on Estimation Frequency defined in your system parameters.

Calculation: System generated from System Parameter Maintenance, Multi GAAP

Validations: Period Estimation Rule

Values: Numeric, 5 positions.

Functional Impact: Estimated item value is shown in the matrix between Estimated item and Period/Year.

Ow.: Indicates if the value under P/YYYY is manually overwritten ‘Yes’. ‘No’ is default value.

Calculation: Check box

Validations: None

Values: None

Functional Impact: None

Conversion currency

Convert: check box for option to display estimation amounts in any currency in the system. Select currency, Exchange Rate Type, Exchange Rate Category and Exchange Rate As of Type.

Properties

Calculation: Check box

Validations: None

Values: None

Functional Impact: If checked, all other fields in ‘Conversion currency’ are editable.

Estimation view: Option to view the estimation values in Accounting Year or Booking Year mode.

Calculation: Fixed values selected from drop-down list

Validations: Hard coded values.

Values: Alphanumeric

Functional Impact: Estimated values are shown either by Booking Year/Period or by Accounting Year/Period

Accumulated: Option to view the estimation values as accumulated Year to date.

Calculation: Check box. Manually entered

Validations: If checked, the figures are accumulated.

Values: None

Functional Impact: Figures are shown accumulated or for each period separately.

Adj as Replacement: Option to replace the calculated estimates with manual adjustment.

Calculation: Check box. Manually entered

Validations: If checked, the figures are accumulated.

Values: None

Functional Impact: Adjusted figures are added with calculated figures for each period separately.

Calculate (button): By clicking the button all estimates will be recalculated.

The currencies, Estimation Items and estimation amounts will be added automatically by just clicking the Calculate button in edit mode. They depend on the estimates that can be found in “as Booking” status on the business ledger.

Note! You can only see Estimation Items that have a Period estimation rule to be shown on Proportional OCC. These are sometimes not the same as those displayed on the Assumed Business.

The estimation that is calculated by the Retrocession estimation calculation order usually does not need adjustments. However, it is possible to do adjustments on this level as well as on the level of Retrocessionaire.

To adjust estimation;

Select the currency in which you want to make the adjustment. If the currency is not in the list, select Add from the pop-up menu to add the currency manually.
Enter the adjustment amount for the period you want to adjust. You can enter this as a replacement to the calculated amount or in addition to it. You can select between accumulated and non-accumulated amounts.

B: When system parameter Period Estimation Calculation on Prop Outward Contracts is selected

Period Estimates are calculated on the proportional OCCs and ORPs in the same way as it does for Non Proportional OCCs, i.e. by using the calculation rules defined in system parameters. See chapter Handle Period Estimates on Non Proportional OCC for further description.