Maintain Intra Group Reinsurance

Reinsurance companies often cede business to an ‘internal’ reinsurer, e.g. to a company in the same corporation or in a joint venture. Each of the parties are in these cases a base company/user company.

For example, a parent company buys reinsurance protection from one of its subsidiaries. On this treaty, the parent company is the cedent and the subsidiary is one of the reinsurer/retrocessionaires. In the subsidiary’s view, this treaty is an ‘internal’ assumed business. This subsidiary may further protect itself at other internal or external companies.

SICS captures both the inward intra group contracts and outward intra group contracts for treaty and facultative business, with appropriate links. This allows efficient processing of these, e.g. proportional accounting.

Create New Intra Group Contracts #

Create an internal retrocessionaire participation and create an inward intra group contract from it.

1. Open the treaty or facultative Outward Cedent’s Contract’s Placement List
2. From the pop up menu, select Add Retrocessionaire, fill in the wizard details as normal, but when assigning the retrocessionaire, select the base comany being the internal participant and select Finish when done.
3. Open the Retrocessionaire Participation created in point 2 or any direct facultative Retrocessionaire Participation protecting an AB and select its Life Cycle tab
4. From the menu button, select Create Intra Group Contract.

Intra Group Contract Creation Features:

• On created Inward Contract (assumed business) link is automatically established.
• On Inward Contract, reinsurer set to same business partner as retrocessionaire on the Outward Intra Group Contract.
• Other information such as e.g. insured period, conditions and classifications, copied from Outward Intra Group Contract.
• Depending on the set of by your system administratior, if the Inward Contract is a single treaty protection, the identifier might be the ID of the intra group retrocessionaire plus a sequence number.
• Depending on the set of by your system administratior, if the cedent and reinsurer of the created Inward Contract match a reporting unit defaulting rule for the base company, the system defaults these reporting units.
• Depending on the set of by your system administratior, if the cedent and reinsurer of the created Inward Contract match an additional classification defaulting rule for the base company, the system defaults this additional classification.

Make Existing Contracts into Intra Group Contracts #

Link an internal retrocessionaire participation to an existing internal assumed business

1. Open retrocessionaire participation and select its Life Cycle tab
2. From the menu button, select Link Intra Group Contract.
3. If you know the identifier of the contract, please enter it in Business and select Insured Period.

If you know its title, you may use the typeahead feature: Type in the title or part of it in the Business field, and you will receive possible matches for the text. If none of these are not known, you may use the normal Business Find facility. 4. In find Business, the following criteria are defaulted

• Level of Business: Assumed Business
• Consider Only Latest Insure Period is selected
• Consider only Latest Status (within each Insured Period) is selected
• Type of Business: same as on retrocessionaire
  Select wanted business/ insured period

Intra Group Contract Validations

• Type of Business (i.e. proportional or non-proportional treaty and facultative) the same on linked contracts
• Insured Period is the same
• Reinsurer on inward contract same base company as retrocessionaire on Outward Intra Group Contract
• Inward Contract’s' classifications subset of Outward Intra Group Contract’s classifications
• Inward Contract not linked to other Outward Intra Group Contracts on selected insured period or any other insured period
• Depending on the set of by your system administratior, reporting units of linked Inward Contracts must be the same as Reporting Units set up as defaults based on reinsurer and cedent
• Depending on the set of by your system administratior, additional classifications of linked Inward Contracts must be the same as additional classification set up as defaults based on reinsurer and cedent Note! If assumed business has multiple insured periods, only the selected insured period is linked to the retrocessionaire participation

Navigate to Intra Group Contract #

You can easily navigate between the two intra group contracts.

1. Open the outward or inward intra group contract
2. In the navigation bar, click the IGC (Intra Group Contract) button

Maintain Intra Group Contract #

To keep the linked contracts synchronized, the user must make sure that both businesses are updated with the same changes.

Intra Group Contract Maintenance Features:

• Changes made on Outward Intra Group Contract are not automatically reflected on the inward contract. E.g. changing insured period or amending a business condition on outward contract does not update the inward contract accordingly
• Changes made on the inward contract are not reflected on the retrocessionaire participation. E.g. making a comment on an inward contract, same comment is not added on the retrocessionaire participation.
• Changed insured period details on inward contract must be identical to the Outward Intra Group Contract’s insured period details
• Changed classifications on inward contract are a subset of Outward Intra Group Contract’s classifications
• Changed reinsurer is the same base company as retrocessionaire on the Outward Intra Group Contract

Handle Intra Group Offer/Quotation Process #

1. Open the Outward Cedent’s Contract
2. Select PL (Placement) and open the outward intra group contract
3. On Life Cycle tab, on the menu button, select New Life Cycle Status
4. Make changes to terms and conditions on this version, if needed
5. Select the IGC button from the navigation bar to open the inward intra group contract
6. On the inward intra group contract’s Life Cycle tab, select New Life Cycle Status from the menu button

Intra Group Contract Offer /Quotation Features:

• Changing status of Outward Intra Group Contract does not automatically change status on the linked inward contract
• Changing status of inward contract, all information copied from latest life cycle status of Outward Intra Group Contract

Renew Intra Group Contracts #

Register that a renewed coverage for the intra group contracts has been established.

1. Renew Outward Cedent’s Contract and make necessary changes to terms and conditions on the new insured period
2. Select PL (Placement) and open the outward intra groups contract
3. On Life Cycle tab, on the menu button, select Renew
4. Make necessary changed to terms and conditions on the new insured period
5. Navigate to previous insured period of the outward intra group contract
6. Select the IGC button from the navigation bar to open the inward intra group contract
7. On the inward intra group contract’s Life Cycle tab, select Renew from the menu button

Intra Group Contract Renewal Features:

• Renewing a outward contract does not automatically renew the linked inward contract
• inward contract cannot be renewed before linked Outward Intra Group Contract renewed
• Renewing linked inward contract, all information copied from new (same) period of Outward Intra Group Contract

Remove link between Intra Group Contracts #

If an Intra Group Contract is e.g. created in error, SICS allows you to remove the link between the Inward and Outward Intra Group Contracts.

1. Open Outward Intra Group Contract and navigate to the Life Cycle tab
2. From the menu button, select

Unlink Intra Group Contract.

Intra Group Contract Link Removal Features:

Removal of link allowed only if no bookings exist on neither Inward norOutward Intra Group Contract