Calculate Loss Adjustment Expenses

If you want the SICS to calculate the Loss Adjustment Expenses, the conditions must be defined.

Calculate Loss Adjustment Expenses - Paid Losses #

Loss Adjustment Expenses - Paid Losses, if defined, is calculated whenever you run the Retrocession Calculation order. Available calculation methods are:

None

No calculation of Loss Adjustment Expenses - Paid Losses is performed

Percent

All Loss bookings according to the Entry Code Group selected on the condition as calculation basis are multiplied with the Share of the Retrocessionaire’s and the Loss Adjustment Expenses - Paid Losses percentage. The result of the calculation is booked on the Business Ledger As Booking with the Entry Code defined in the system parameter Entry Code Usage, Calculation Loss Adjustment Expenses - Paid Losses by your System Administrator.

Which Entry Codes is part of the Entry Code Group within the Category Loss Adjustment Expenses - Paid Losses is decided by your System Administrator.

Example

Entry Code defined for Calculation Loss Adjustment Expenses - Paid Losses = ‘3LAE’

Retrocessionaire’s Share = 10%
Loss Adjustment Expenses - Paid Losses = 5%

*) Entry Codes in Entry Code Sub Category Loss

**) The Loss Adjustment Expenses Basis is dependent on the definition of the selected Entry Code Group. Refer to Category Loss Adjustment Expenses - Paid Losses (In this example 30 and CPD).

Original + Percent

All bookings with Entry Codes within the Entry Code Sub Category Loss Adjustment Expenses - Paid Losses are multiplied with the Share of the Retrocessionaire’s. In addition, all Loss bookings (according to the Entry Code Group definition) are multiplied with the Share of the Retrocessionaire’s and the Loss Adjustment Expenses - Paid Losses percentage. The result of the calculation is booked on the Business Ledger As Booking with the Entry Code defined in the system parameter Entry Code Usage, Calculation Loss Adjustment Expenses - Losses Paid by your System Administrator. In addition the original Entry Code(s) is used for booking if different from the one defined in the system parameter.

Which Entry Codes is part of the Entry Code Group within the Category Loss Adjustment Expenses -Paid Losses is decided by your System Administrator.

Which Entry Codes is part of the Entry Code Sub Category Loss Adjustment Expenses - Paid Losses is decided by your System Administrator.

Example

Entry Code defined for Calculation Loss Adjustment Expenses - Paid Losses = ‘3LAE’

Retrocessionaire’s Share = 10%
Loss Adjustment Expenses - Paid Losses = 5%

*) Entry Codes in Entry Code Sub Category Loss

**) Entry Codes in Entry Code Sub Category Loss Adjustment Expenses - Paid Losses

***) The Loss Adjustment Expenses Basis is dependent on the definition of the selected Entry Code Group. Refer to Category Loss Adjustment Expenses - Paid Losses(In this example 30 and CPD).

Calculated as (40.000 * 10% * 5%) + (70.000 * 10% *5% ) + (3.000 * 10%)

Calculate Loss Adjustment Expenses - Reserves #

Loss Adjustment Expenses - Reserves, if defined, is calculated whenever you run the Retrocession Calculation order. Available calculation methods are:

None

No calculation of Loss Adjustment Expenses -Reserves is performed

Percent

All Loss Reserve bookings according to the Entry Code Group selected on condition as calculation basis are multiplied with the Share of the Retrocessionaire and the Loss Adjustment Expenses - Reserves percentage. The result of the calculation is booked on the Business Ledger As Booking with the Entry Code defined in the system parameter Entry Code Usage, Calculation Loss Adjustment Expenses - Loss Reserves by your System Administrator.

Which Entry Codes is part of the Entry Code Group within the Category Loss Adjustment Expenses -Loss Reserves is decided by your System Administrator.

Note! Loss Adjustment Expenses - Reserve is calculated also when no Loss Reserve condition is defined on the Outward Cedent’s Contract. The basis for the calculation is the Loss Reserve bookings made on the OCC Business Ledger As Booking.

Example

Entry Code defined for Calculation Loss Adjustment Expenses - Loss Reserves = ‘3RAE’

Retrocessionaire’s Share = 10%
Loss Adjustment Expenses - Reserves = 20%
Loss Reserve = ‘Original’

*) Entry Code in Entry Code Sub Category Original Loss Reserve

**) Entry Code in Entry Code Sub Category Additional Loss Reserve

***) The Loss Adjustment Expenses - Reserves basis is dependent on the definition of the selected Entry Code Group. Refer to Category Loss Adjustment Expenses - Loss Reserves (In this example 83 and 87).

Original + Percent

All bookings with Entry Codes within the Entry Code Sub Category Loss Adjustment Expenses - Loss Reserves are multiplied with the Share of the Retrocessionaire’s. In addition, all Loss Reserves bookings (according to the definition of the Entry Code Group Loss Adjustment Expenses - Loss Reserves) are multiplied with the Share of the Retrocessionaire’s and the Loss Adjustment Expenses - Reserves percentage. The result of the calculation is booked on the Business Ledger As Booking with the Entry Code defined in the system parameter Entry Code Usage, Calculation Loss Adjustment Expenses - Loss Reserves by your System Administrator. In addition the original Entry Code(s) is used for booking if different from the one defined in the system parameter.

Which Entry Codes is part of the Entry Code Group within the Category Loss Adjustment Expenses -Loss Reserves is decided by your System Administrator.

Which Entry Codes is part of the Entry Code Sub Category Loss Adjustment Expenses - Loss Reserve is decided by your System Administrator.

Example

Entry Code defined for Calculation Loss Adjustment Expenses - Loss Reserves = ‘3RAE’

Retrocessionaire’s Share = 10%
Loss Adjustment Expenses - Loss Reserves = 20%
Loss Reserve = Original Reserve

*) Entry Code in Entry Code Sub Category Original Loss Reserve

**) Entry Code in Entry Code Sub Category Additional Loss Reserve

***) Entry Codes in Entry Code Sub Category Loss Adjustment Expenses - Loss Reserves

****) The Loss Adjustment Expenses - Reserves basis is dependent on the definition of the selected Entry Code Group. Refer to Category Loss Adjustment Expenses - Loss Reserves (In this example 83 and 87 ).

Calculated as (50.000 * 10% * 20%) +( 60.000 * 10% * 20%) + (4.000 * 10%)