Base Company Recovery

In order to calculate recoveries using each Base Company’s proportion of the total incurred loss as the basis, you must first have created and booked the regular recoveries.

In the following an example of two Base Companies is used. The source claim details are

Source/assumed Claim Bookings

Both policies are protected by the same OCC.

The ordinary recovery calculation would result in the following recovery
calculation:

Recovery calculation OCC 100,000 xs 100,000

| Due to the applied sorting rules, GRE Base B must carry the entire retention, whereas GRE Base receives the entire recovery. |

It may be argued that both base companies should carry their proportionate share of retention, and receive their proportionate share of the recoveries, and the sequence in which they booked their claims, should not affect the distribution. SICS offers a possibility to adjust the recovery details in such a manner.

View and Book Base Company Recovery #

The Base Company Recovery calculation allows you to view the results online, from the OCC Claim List, or from an Order. After viewing, you can select to create the adjustments.

To View Base Company Recovery from OCC Claim List:

1. Open the Claim List of the OCC for which you want to view the Base Company recovery. The OCC may be a standalone OCC, or grouped in a Protection Programme.
2. Select View Recovery Details from popup menu. The option is only enabled if the OCC covers more than a single Base Company. The system opens the Recovery Details window in collapsed view. Expand as required, using the popup menu options.

The Recovery Details lists all claims on the selected Insured Periods broken down per Insured Period, OCC, section, claim, currency, accounting classification, and base company. If the OCC is linked to a Protection Programme section, the Recovery Details includes all the OCCs within the section.

The list displays the regular, already booked recovery figures (in black), and the adjusted base company recovery figures highlighted in blue. All figures are accumulated.

The Recovery Details can be exported to an xl spreadsheet by selecting this option from the column header menu.

To Book Base Company Recovery Adjustments from OCC Claim List:

The Adjusted recoveries as displayed in the Recovery Details window are initially purely informational. The user can decide whether the adjustment bookings shall be created.

1. From the View Recovery Details window, select Generate Adjustments from the popup menu. The system returns an informational message if adjustments are made.

To View and Book Base Company Recovery from Orders:

The Base Company Recovery calculation is supported with an order for single OCCs, and one for Protection Program. The orders can be accessed from Find Accounting Order window, or from the Protection Programme part, or from the OCC Claim List:

1. From Find Accounting Order window, select New Recovery Calculation order type, and select Recovery Per Base Company for Protection Program or Single OCC. The order window opens, and allows you to add a single Protection Program, or a number of OCCs.
2. From Protection Program part, select Create Recovery Per Base Company Order. The system opens the Create Recovery Per Base Company Order for Protection Program window, with all insured periods and sections of the Protection Program already included. It is not possible to add additional programs, but you can select to exclude specific insured periods or sections.
3. From the Claim List of a single OCC, select Create Recovery Order options, select the Insured Period which you want to View/Create Base Company Recoveries for, and select Create Recovery Per Base Company Order. The Order window for single OCCs is opened. You can add additional OCCs, if required.
4. Once order definition is complete, select to Run the order. The system displays the Recovery Detail list for all included OCCs.

Note! Note: Do not select CLOSE on this window, unless you want to generate the Adjustments.

5. Select Close on the Recovery Detail list to generate the Base Company Recovery Adjustments. This generates adjustments for all included OCCs. It is not possible to select which ones to book at this point. Should you only wish to include certain OCCs, you must define the order so that only those OCCs are included.

Inspect Retrocessionaire Business Ledger #

The Base Company Recoveries do not change the regular recoveries already booked. The OCC Business Ledger, and OCC claim remain unchanged. The necessary adjustments are made on each recovery detail on the retrocessionaires' business ledgers.

View Base Company Recoveries on Retrocessionaire Business Ledger:

1. Open the Business Ledger of the ORP
2. Select the recovery detail for which you want to see the Base company split, for example the Paid Recovery of 100,000

3. Select View Details Adjustment details from the popup menu. The system opens the Recovery Details Adjustment Details window.

This displays the necessary adjustments made to the original recovery booking split per Base Company. These amounts may be transferred to the General Ledger, if required.