Design Facultative Protection Program

Design Facultative Protection Program

To ease registration of large numbers of facultative protections that covers the same scope, it can be beneficial to group these into a contract. These contracts then contain the list of the facultative reinsurers as well as conditions common to all reinsurers.

These facultative reinsurances can protect one inward business or several businesses covering the same risk. All the facultative reinsurances belonging to the relevant contract (fac participants) can then be assigned in one go to each of the protected businesses.

For setting up a contract with facultative agreements, Outward Cedent’s Contract with Type of Business Proportional Facultative or Non Proportional Facultative is provided.

Create a Facultative Protection Program #

  1. From Desktop, click Business and select Create New
  2. You see the Create New Business wizard..
  3. Select Protection Program in the Level of Business drop-down list.
  4. Select Facultative Program in the Type of Program drop-down list.
  5. Otherwise, follow steps according to description for Treaty Protection Program.

Design Proportional and Non Prop Protection #

Similar to Treaty Program, your may plan the protections on the Proportional Fac Part and Non Proportional Fac Part of the Program. The Program conditions have Facultative behavior.

Outline Proportional Fac Protections #

  1. Available Type of Participation
  • Proportional Fac
  1. Available for input of limit information
  • Limit Type
  • Proportional Top Limit
  • Proportional Limit
  • Underlying Top Limit.
  1. Otherwise according to Proportional Treaty Program

Outline Non Proportional Fac Protections #

  1. Available Type of Participation
  • Non Proportional Fac Per Risk
  • Non Proportional Fac Per Risk Or Event
  1. Available for input of limit information
  • Limit Type
  • Top Limit
  • Layer
  • Unlimited
  • Cover
  • Excess
  1. Otherwise according to XL Treaty Program

Create Facultative Outward Cedent’s Contract from Program #

You may create a Facultative Outward Cedent’s Contract from the protection that you have outlined.

  1. Highlight the saved Fac Outline

  2. Select Realize Fac Outline from the pop-up menu

  3. The system validates that the Program Section covers only one Type of
    Business.

  4. You are required to enter share conditions

  5. The system creates a new Fac OCC, based on the values and conditions entered on the Program Fac Part and with a link to the protection program.

Assign Existing Facultative Outward Cedent’s Contract to Facultative Program #

If you have already created a Facultative Outward Cedent’s Contract, it can be linked to the program as long as the classification of the contract is a subset of the program classification.

  1. Select Create Fac Outline From Business from the pop-up menu
  2. Find and select an appropriate Outward Cedent’s Contract
  3. Must be of Type of Business Facultative (Proportional or Non Prop according to Program Fac Part) and have a classification that is a subset of the program classification.