Include Claim in Recovery Calculation

To specify that assumed claims should be included in the Recovery Calculation and at which level, there are three possible options:

Headline Loss Link on Claim: You can link the assumed claim to a Headline Loss. The link is set up in the Assignment display list under Claim Properties. F or description of how to establish this link, refer to the_Claims Handling_ chapter,_Assign Claim to Headline Loss_ section.

The system accumulates all assumed claims linked to this Headline Loss and considers the total amount against the limits of the non-proportional protections.

Recovery Calculation: You can select Include Claim from the pop-up menu on Claim Properties to indicate that the claim should be included in the recovery calculation as a single claim. The option is disabled when the claim is linked to a Headline Loss. Refer to Single Losses included in Recovery in the_Handle Claims_ chapter for more information.

The system considers the amount booked for the single claim against the limits of the non-proportional protections.

However, if the inward claim has a Risk Name and the Claim Risk Event Indicator is set to Risk, all claims with the same Risk Name are considered as one claim in the recovery calculation. Refer to Risk Claim Included in Recovery in the Handle Claims chapter for more details,

Headline Loss Link on Technical Booking: For proportional assumed business, there is an option to create a link directly from a claim booking on the technical worksheet to a Headline loss, without creating a claim. When making a new booking, the Headline loss is selected through the Link Headline Loss option on the technical worksheet pop-up menu. Refer to the Accounting chapter,Link Bookings on an Assumed Business to a Headline Loss from a Technical Workheet section for further details.

Note! None of the above are required for recovery on US Quota Shares. All claims that are created and booked on a business protected by a US Quota Share are subject to recovery from same, provided the link between the claim and the protection has been defined. Each claim is recovered separately, but claims linked to a Headline are also considered accumulated and validated against the Event Limit.

In addition to these three ways to specify that a claim should be considered in the recovery calculation, you must establish a link between the assumed claims and the Protection Program. Depending on how the claims are entered, there are two possible ways to establish this link:

Links on the Individual Claim: When creating an assumed claim that might be recoverable under an outward non-proportional protection, you must link the claim to the correct Program Section, Outward Cedent’s Contract or XL CA Of Outward.

For description of how to establish this link, refer to_Claims Handling_ chapter, _Assign the Claim Automatically to Single OCC or Protection Program_ section.

Through this link the claim is a part of the recovery calculation for each of the linked Outward Cedent’s Contracts. Note that this link is not relevant for Recovery Calculation for XL Fac.

Links on the direct Headline Loss Bookings: For proportional assumed claim bookings with a Headline Loss Link there must be a link from the Headline Loss to the correct Program Section.

For description of how to create this assignment, refer to Protect Business Reinsurance chapter,Assign Headline Loss Protection section.

This link enables the system to accumulate all bookings under one Headline Loss and consider it for automatic recovery calculation under the outward protections. This option is only relevant for Recovery Calculation for Protection Program.