The Retrocession Calculation Order

For each account to be run for an Outward Cedent’s Contract (OCC), a Retrocession Calculation order has to be created. The following processes are performed when running the order:

1. Preliminary (‘OCC as original’) bookings, not previously included in an account, are transferred and booked on the business ledger of the OCC in booking currency. If defined on the OCC, Entry Codes and/or Currencies and/or Classification Types are transformed before the business ledger in booking currency is updated. NB! If the OCC is defined with Premium Basis equal Cash Based Premium (refer to the section “Add Accounting Information on Business” in the Accounting chapter) it will have the following functional impact; When the Retrocession Calculation order runs, the system will include the As Original bookings on the OCC if the source details they belong to on the IAB is in a balance that is Settled. If the source detail’s balance on the IAB is Unsettled or Partially Settled then it will NOT be included in the order. If the As Original details does not have a source detail, e.g. because it is manually booked on the OCC, it shall always be included in the Retrocession Calculation order.
2. If selected on the Administration Conditions of the OCC, only booking details with Accounting Year(s) marked as complete will be included in the Retrocession Calculation order. A check will be performed; If the preliminary booking detail has an Accounting Year equal or lower than the year entered as Last Complete Accounting Year on the protecting business, then the detail will be included in the order. This check will only have an impact on bookings having a link to an Assumed Business. (Refer to the field “Account Complete Accounting Years only” on the Administration Condition).
3. The OCC as booking amounts from the above step are used as basis for calculation of each Retrocessionaire’s Participation (ORP) share. Calculations according to OCC conditions and ORP specific conditions are also performed. The results of the calculations are booked on each ORP’s business ledger in booking currency. In case of Entry Code Transformation Term being defined on the OCC (Main Section/Sub Section), the corresponding calculation method has to be defined to have the Entry Code transferred/booked on the ORP business ledger.

Create and Run the Retrocession Calculation Order #

1. Open the administration conditions of the OCC for which the account should be created.
2. Select the account number to be processed from the Accounts tab.
3. Select Create Retrocession Calculation order from the menu. The New Retrocession Calculation order window appears.
4. Define the different fields of the order. (Refer to - Retrocession Calculation Order.)
5. Select Run Now from the menu.

Note! DXC recommends you to create and run the accounts in a sequence. We also recommend you to run/rerun the order without closing the worksheets until the figures on the OCC- and ORP business ledgers are correct. When all figures are correctly booked, you select Close Worksheets option and clear the Outward Cedent Contract and the Placement option before running the order for the last time.

Example:

Change of share during an Insured Period:

OCC conditions:

Bookings on OCC + booked on ORP after running Calculation order:

a) Premium 400.000 x 50% x 65% = 130.000
130.000 - (17.500 + 35.000 + 8.750) = 68.750

b) Loss Reserve 250.000 x 50% x 65% = 81.250

c) Figures booked in 1^sthalf 2002 account are reversed when running the order on Cumulative basis. Note that Premium Reserve is calculated different from Loss Reserve. When calculating the Premium Reserve as a percent of Premium, the basis is the Premium for one Accounting Year (last 12 months/4 quarters/3 trimesters/2 half years).

d) Premium 1^st+2^nd half year 2002: 400.000 x 65% = 260.000
260.000 - 52.500 = 207.500

e) Loss Reserve 1^st+2^nd half year 2002: 400.000 x 50% x 65% = 130.000
130.000 - 26.250 = 103.750

View Worksheets from Retrocession Calculation Order #

When the order has been run, the produced worksheets can be inspected directly from the order.

1. Create and Run a Retrocession Calculation order.
2. Select View Worksheets from the order menu. The View Worksheet window appears.
3. Select the Worksheet you want to inspect and select View Worksheet from the pop-up menu. The Worksheet Closing window appears.
4. In order to inspect the booking details of the balance, select a balance and select View Balance Details from the pop-up menu. The View Balance Details window appears.

In the View Worksheet window a worksheet is produced per Business ID. You are allowed to access the Business Properties and Business Ledger for these businesses by selecting Business Properties or Business Ledger from the pop-up menu.

In order to open the Balance details window for a balance, select the balance and select More Balance Information. You are allowed to do the following from the More Balance Information window in Edit mode:

• Select the Include in Statement check box.
• Update the Cedent/Broker reference field.
• Update the EDI reference field.

(For further information about the More Balance Information window, see The Business Ledger) (For further information about the Worksheet Closing window, see Manual Bookings on a Worksheet)

View ALL Balances created by Retrocession Calculation Order #

Sometimes, the numbers of the produced worksheets may be very large, and the information on the view worksheets window is in some situations, not enough for the users to filter what they want.

In these situations you can choose the option View Worksheets Balances. Through this option, the system can show the balances for ALL Businesses and ALL Worksheets created by the order in the same overview.

You can view all these balances directly from the order:

1. Create and Run a Retrocession Calculation order.

2. Select View Worksheets Balances from the order menu button. The View Worksheet Balances window appears.

3. For each balance found on the worksheets created by this order, the following information is displayed, which combines the information on View Worksheets window and Worksheet Closing window. (The detailed fields description can found on those two windows)

   • WS ID (Worksheet Id)
     
   • WS Title (Worksheet title)
     
   • WS Origin (Worksheet origin)
     
   • Registration Date
     
   • Status
     
   • #Bookings (number of details in the balance)
     
   • Business ID
     
   • Currency
     
   • Balance (Balance amount)
     
   • Booking Year/Period - Local
     
   • AccYR (Accounting Year)
     
   • AccPeriod
     
   • AccPeriod From - To
     
   • UWYR (Underwriting Year) - if more than one Underwriting Year is found on the details within a balance the field is blank and the user can see the values by drop down the list
     
   • Section - if more than one Section is found on the details within a balance the field is blank and the user can see the values by drop down the list
     
   • AccClassification - if more than one Accounting Classification is found on the details within a balance the field is blank and the user can see the values by drop down the list
     
   • Payment Partner - blank for the balances on the OCC
     
   • Responsible BP - blank for the balances on the OCC
     
   • Retroceded% (the signed share of the ORP) - blank for the balances on the OCC

4. In order to inspect the booking details of the balance, select a balance and select View Balance Details from the pop-up menu. The View Balance Details window appears from where you can navigate to the More Detail Information window.

5. In order to open the balance properties window for a balance, select the balance and select More Balance Information from the pop-up menu. The Balance Properties window appears.

6. You are also allowed to access the Business Properties, Online Statistics, Claim Properties for these businesses by selecting the corresponding options from the pop-up menu.

Inactivate a Worksheet from a Retrocession Calculation Order #

You are allowed to inactivate the worksheets produced from a Retrocession Calculation order. The worksheets must have the status Open.

1. Create and run the Retrocession Calculation order without closing the worksheets.
2. Select Inactivate Worksheet from the menu of the order.

A confirmation message appears asking if you want to continue. Select Yes to confirm, or No to Cancel. The order is inactivated along with the worksheets.

Copy a Retrocession Calculation Order #

You can make a copy of a Retrocession Calculation order when the order is run and Worksheets have the status Closed. This may be relevant when you want to create a new order for the same business and Accounting Year and - Period as defined in the source order.

1. Open a Retrocession Calculation order, where the status of the Worksheets is Closed.
2. Select Copy to from the order menu.
3. A New Retrocession Calculation Order is created.

Compared with a New Retrocession Calculation Order created from the Administration Conditions, more fields are predefined in the copied order:

Title: The title ‘copy of ……’ is displayed. If a title is defined in the source order, the title is added to copy of.

Order Status: Copied from the source order.

Last Booking Year and Period to be Extracted: Period Set and Year/Period values are copied from the source order.

Access the Business Ledger from a Retrocession Calculation Order #

You may access the Business Ledger of the OCC business and ORP businesses. This may be relevant if you want to inspect figures booked to the OCC business ledger in original currency or the OCC and ORP business ledger in booking currency.

To open Business Ledger directly from the Order Menu:

When you want to access the OCC business ledger only, you can navigate directly from the order menu.

1. Create and run the Retrocession Calculation order, or open an existing order.
2. Select Business Ledger from the menu of the order.
3. The Business Ledger of the OCC business is opened.
4. You may navigate to the as original ledger and as booking ledger.

To open Business Ledger from View Worksheet window:

When you want to access the Business Ledger for the ORP’s in addition to the OCC business ledger, you should navigate via the View Worksheet window:

1. Create and run the Retrocession Calculation order, or open an existing order.
2. Select View Worksheet from the order menu.
3. Select the WS/ID/Business Id for which the Business Ledger is to be opened.
4. Select Business Ledger from the menu.

Note! If the Worksheet status of the order is Open you must select WS status Open in the OCC as booking business ledger to view the worksheets produced from the specific order.

(Refer to the chapter The Business Ledger for further information about business ledger details.)

Create and Run a Retrocession Calculation Group Order #

You can create and run Retrocession Calculation orders as a group. You include the OCC businesses, for which calculation orders are to be run, in a Retrocession Calculation Group order. Individual orders per included OCC are automatically created and processed in sequence from the group order. The same Accounting Period and Accounting Year must apply for all individual orders.

1. Open the Find: Accounting order window from the Accounting folder.
2. Select New from the menu/C_reate New_. The Order Type Selection window appears.
3. Select Retrocession in the drop-down list, select Calculation Group Order from the list and click OK. A New Retrocession Calculation Group order appears.
4. Select Add Business or Add Group from the menu in Identifier/Business Title/Bouquet Calc.Group Name/Type display area. Dependent on the selection, the Find: Business or Find: Business Groups window appears.
5. Search for OCC business or Business Group. Businesses are automatically transferred to the order upon selection. (See Field Description below.)
6. Define the fields of the order. (For details about the fields, refer to the Field Description below.)
7. Select Create Orders from the menu when the group order is created.
8. Select Run Now to process the individual orders in sequence.

When Create Orders is selected from the order menu, the individual orders are created with subsequent order numbers. The Order Title on the individual orders is generated from the Group Order ID + Title + Account As of Date. After the group order has been run the worksheets have to be inspected from each individual order. It is recommended to run/rerun the group order without closing the worksheets until the figures on each OCC/ORP business ledger are correct.

The individual orders created from the Group Order can be edited and ran individually.

You can also create scheduled jobs for the individual orders created from the Group Order, by selecting the option Create Scheduled Jobs for Ordes.

From the Retrocession Calculation Group order you can modify the different fields by selecting Edit from the order menu. Your changes are automatically updated by the individual orders. You may select to rerun the order until the worksheets are closed. Select Inactivate Worksheets from the Group order menu to inactivate worksheets and the individual orders.

Request Scheduled Job Template #

When the Retrocession Calculation Order Group is flagged as a ‘Batch Template, a Job Template may be requested from the Retrocession Calculation Order Group;

1. Select the field ‘Batch Template’ in section ‘Order’ on the Retrocession Calculation Order Group and fill in remaining fields
2. Press OK button
3. Select ‘Request Scheduled Job Template’ from the order menu
4. Job Template window appears (refer to Scheduler, Job Templates for more information)
5. If you want, you can change one or more of the default values
6. Press the ‘Save’ button
7. A Job Template is created and may be inspected from the Periodic Functions, Accounting Order Monitor or from the Schedules Jobs, Job Templates tab.

The Group Order Template holds the information needed to create orders (group order and single orders). Group order and single orders are created when the option ‘Copy to Actual Job’ is selected either from the pop-up menu for the marked Job Template in the Scheduler or in the Accounting Order Monitor (for more information refer to the Scheduler or the Periodic Functions).

The below fields are different from the individual Retrocession Calculation order. For description of the remaining fields of the order, see the above. Field Description - Retrocession Calculation order

The below fields are different from the individual Retrocession Calculation order and placed on the ‘Additional’ tab. For description of the remaining fields of the order, see the Field Description - Retrocession Calculation order above.

Copy a Retrocession Calculation Order Group #

When you want to create a new group order for the same businesses/group(s) as defined in the source group order, the easiest way is to copy an existing Retrocession Calculation Order Group.

To copy a retrocession calculation order group:

1. Open a Retrocession Calculation Order Group.
2. Select ‘Copy to’ from the Order menu.

You see a copy of the source order. Compared with a New Retrocession Calculation Order Group created from the Find: Accounting Order window, the following fields are predefined in the copied group order:

• Title: The title ‘copy of ……’ is displayed. If a title is defined in the source order group, the title is added to copy of.
• Items Included: Copied from the source order group.
• Order fields: Copied from the source order group.
• Exchange Rate: Copied from the source order group.
• Balance Split Options: Copied from the source order group.
• Order Status: Copied from the source order group.
• List of Businesses/groups: Copied from the source order group.

Create and Run a Retrocession Estimation Calculation Order #

When the preliminary (OCC as original) bookings are estimates, you process the estimated figures to the OCC and ORP business ledgers in booking currency by running the Retrocession Estimation Calculation order.

As for Retrocession Calculation orders, you can select View Worksheets from the estimation order. It is recommended to run/rerun the order without closing the worksheets until the estimated figures on the OCC/ORP business ledger in booking currency are correct.

Intra Group Contracts
When the worksheets are Closed and in case the ORP business is linked to an Intra Group Assumed Business and the system parameter Book Estimates on Intra Group Contracts is On, the estimate bookings in the closed worksheet will be copied to the linked Assumed Business.

When manual booking of estimates is done directly on the ORP and the worksheet is closed, then the system follows the same process as when the Retrocession Estimation Calculation order runs with Closed worksheet on an ORP with IGC AB linked

You can also copy the order:

1. Open the Administration conditions of the OCC for which the order is to be created.
2. Select the account number to be processed from the Accounts tab.
3. Select ‘Create Retrocession Estimation Calculation Order’from the menu. The Create Retrocession Estimation Calculation Order window appears.

4. Define the different fields of the order. (Refer to the field description below.)
5. Select Run Now from the menu.