Claim Transactions

When the system receives a claim transaction, it determines which assumed ceding contracts are applicable based on cedant, risk type, and coverage. Afterwards, the allocation of the claim recovery for the applicable assumed ceding contracts is based on the technical accounting method previously selected for the contract. Each claim transaction placed in the retention or book-of-business treaty triggers an evaluation of applicable retrocession contracts. The system determines which retrocession contracts are applicable, based on cedant, risk type, and coverage. It then allocates any retrocession recoveries for the applicable contracts based on the technical accounting method of the contract. If the contracts in question are non-proportional contracts (e.g. Excess of Loss or Catastrophe Excess of Loss), the system also calculates reinstatement premiums and generates the corresponding transactions.