Mapping proportional reinsurance in ICIS

First, a function is implemented for entering and maintaining the probable maximum loss (PML) of a single contract, taking account of functional parameters such as insured risk, index-linked increases to the basic amount, or the liability limit. This forms the basis for automatic management of contract accumulations, which results in a cumulative PML as the total of all the PML values for all the contracts involved. A threshold logic is then used to calculate the reinsurance rates during contract processing in background processes. This takes into account framework agreements with reinsurance partners to map the mandatory surplus reinsurance, and it also enables optional application of individual reinsurance contracts. Finally, the reinsurance rates are used to calculate the share of each reinsurance partner in the posted contributions, payments for damages and premiums, which enables settlement of the reinsurance transaction with the companies involved.