Contract Management
The Contract Management Server and Technical Accounting Management Server systems
are based on three major types of reinsurance contracts, which are used to structure
the overall business model and allow for the flow of transactions throughout the
system. These contracts are the assumed ceding contracts (see "System Contract Types"
below), retention or book-of-business treaties, and retrocession contracts. The
retention or book-of-business treaty contracts represent a key component of the
SurSITE® model and form the basis to define reinsurance contracts to
cedant and protect the business through collective retrocession contracts. The assumed
ceding contracts allow the company to assume both direct and indirect business.
The retrocession contracts provide the company with the ability to buy protection
for the business, which it assumes into its retention or book-of-business treaties.
All contract types accept manual transactions at any point in the automated insurance/reinsurance
workflow.
Organizations benefiting from SurSITE®
The SurSITE® system provides for individual accounting and allocation for each participant
in the reinsurance contract value chain including cedant, internal business units
or pool members, reinsurers, and intermediaries such as reinsurance brokers. The
system can be deployed in a number of different configurations for large insurance
and reinsurance companies, or a fleet of companies in addition to large captive
re/insurance entities and Managing General Agencies. The illustration below shows
the basic model for implementation and deployment of a reinsurance company’s facultative
business unit.
These types of contracts can be arranged for different risks and coverage such that
separate programs, composed of multiple contracts and combinations, can be established
by one or more risk and by coverage. Separate assumed ceding contracts can be established
for each cedant and each cedant can have multiple assumed ceding contracts splitting
the business by risk and coverage to provide different protection programs using
different technical accounting methods, thus providing a set of very flexible options
for each cedant. For example, if a company's business is based on aviation, then
different contracts can be established for hull, liability, and personal accident
and further split by turbo and jet vs. piston aircraft. The coverage and risk classification
is based on a set of flexible system codes that can be customized for each implementation
and client and can be mapped to any existing company coverage and risk classification
scheme.