2.4.5.
Reinsurance Contract
Up one level
Each reinsurance contract has a strategy defining the contract type.
Common parameters to all strategies are
- covered by reinsurer defining the share signed
- Inuring priority is used if the user can add and remove contracts. It allows to define the order of applied contracts. Claims and underwriting information are first processed by the contract with the lowest inuring priority. The resulting net is then processed by the contract with the next higher inuring priority. If several contracts have the same inuring priority, they are applied in parallel. Parallel contracts may be used in combination with "covered by reinsurer" if a contract is splited among several reinsurers. Another use case consists of several XL layers.
Possible Strategies
- A quota share contract will have a proportional effect on all claim types.
