Example: Acknowledgment of Actuals
Enriches actuals by applying matching logic to determine date information missing earlier in the life cycle, and also determines the regime for every cashflow item.
The matching of actuals to estimates can be carried out in the following ways:
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If the CF calculation is “01”, the system matches the actual to the estimate based on the business date of the actual. This means, Settled Date for settled transactions, Due Date for due transactions and Reported Date for reported actuals.
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If the CF calculation is “02”, the system matches the actual to the estimates based only on the Secondary Risk Incurred Date. This is used in L&H business where the missing dates in the actuals are predetermined by a reverse life cycle conversion based on models.
In this example the CF calculation is “01”and the dates for an actual (Cf Indicator = 03) are enriched starting from a pattern of estimates (Cf Indicator = 01). The tables below contain the most important values and parameters.
| 01 | Used for P&C |
| 02 | Used for L&H |
| 01 | Estimate |
| 02 | Reported Actual |
| 03 | Due Business Transaction |
| 04 | Settled Business Transaction |
| 01 | Follow Actuals |
| 02 | Reflect Actuals |
| 03 | Follow Estimates |
| 04 | Estimated Future |
| Monthly |
| Quarterly |
| Annual |
Input Data
| Cf Calc | Contract | Coverage | Cost Category | Cf Indicator | Pr Incurred Date | Pr Reported Date | Incurred Date | Reported Date | Due Date | Settled Date | Settled Amount | Currency | BT ID | Hold Back Date | RA HBD | Key Date | Regime |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 01 | RIC_Q101DT | COV_Q101DT | 1010 | 1 | 2018-01-01 | 2018-02-25 | 2018-01-25 | 2018-02-25 | 2018-03-25 | 2018-04-25 | 100 | EUR | 2018-01-31 | 2018-01-31 | 2018-05-15 | ||
| 01 | RIC_Q101DT | COV_Q101DT | 1010 | 1 | 2018-01-01 | 2018-03-25 | 2018-01-25 | 2018-03-25 | 2018-04-25 | 2018-05-25 | 200 | EUR | 2018-01-31 | 2018-01-31 | 2018-05-15 | ||
| 01 | RIC_Q101DT | COV_Q101DT | 1010 | 1 | 2018-01-01 | 2018-04-25 | 2018-03-25 | 2018-04-25 | 2018-05-25 | 2018-06-25 | 300 | EUR | 2018-01-31 | 2018-01-31 | 2018-05-15 | ||
| 01 | RIC_Q101DT | COV_Q101DT | 1010 | 3 | 2018-05-14 | 2018-06-25 | 150 | EUR | DUE_01 | 2018-01-31 | 2018-01-31 | 2018-05-15 | |||||
| 01 | RIC_Q101DT | COV_Q101DT | 1010 | 1 | 2018-01-01 | 2018-05-25 | 2018-04-25 | 2018-05-25 | 2018-06-25 | 2018-07-25 | 400 | EUR | 2018-01-31 | 2018-01-31 | 2018-05-15 |
Flow Modeling Configuration
| Rule | Description | Rule Type | State | Rule Grouping | Rule Ordering | Selection |
|---|---|---|---|---|---|---|
| AOA | Acknowledgement of Actuals Same Period | Acknowledge of Actuals | Active |
| *Actuarial Granularity Fields | Contract, Cost Category, Coverage |
| *BT Granularity Fields | BT ID |
| *First Hold Back Date Field | Hold Back Date |
| *Second Hold Back Date Field | Ra HBD |
| *Business Date Field | Key Date |
| *Period Type | Monthly |
| *Life Cycle Step Field | Cf Indicator |
| CF Calculation Field | CF Calc |
| Match Basis | Same Period Match |
| *Amount Field | Settled Amount |
| Prim. Risk Incurred Date Field | Incurred Date |
| *Sec. Risk Incurred Date Field | Pr. Incurred Date |
| Prim. Risk Reported Date Field | Reported Date |
| Sec. Risk Reported Date Field | Pr. Reported Date |
| Due Date Field | Due Date |
| *Settled Date Field | Settled Date |
| Regime Field | Regime |
Key Configuration Description
| Field | Meaning | Notes |
|---|---|---|
| Actuarial Granularity Fields | List of fields that uniquely identify a set of cash flows as a group | Mandatory input.
The fields have to be inserted into the Granularity section of the Signature tab. |
| BT Granularity Fields | List of fields that uniquely identify a set of cash flows as a group | Mandatory input |
| First Hold Back Date Field | Defines the date after which the model-based cashflows take precedence. | |
| Second Hold Back Date Field | Defines the date from which additional incurred date has to be calculated as a factor of actuals to be accounted as estimates. | |
| Business Date Field | Defines the key date for which the estimated cashflows are projected. | |
| Period Type | Defines the periodicity used as a basis for matching actuals to estimates. | |
| Life Cycle Step Field | Defines the definition of cashflow: estimate and various actual types. | Mandatory input |
| CF Calculation Field | Distinguishes between Life & Health and Property & Casualty Businesses. | |
| Match Basis | Determines the matching logic. | Possible Values:
|
| Regime Field | Determines the regime to which the cashflow item belongs to. |
Output Result
| Cf Calc | Contract | Coverage | Cost Category | Cf Indicator | Pr Incurred Date | Pr Reported Date | Incurred Date | Reported Date | Due Date | Settled Date | BT ID | Hold Back Date | Key Date | RA HBD | Regime | Settled Amount | Currency |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 01 | RIC_Q101DT | COV_Q101DT | 1010 | 03 | 2018-01-01 | 2018-04-25 | 2018-03-25 | 2018-04-25 | 2018-05-14 | 2018-06-25 | DUE_01 | 2018-01-31 | 2018-05-15 | 2018-01-31 | 3 | 150 | EUR |
| 01 | RIC_Q101DT | COV_Q101DT | 1010 | 01 | 2018-01-01 | 2018-02-25 | 2018-01-25 | 2018-02-25 | 2018-03-25 | 2018-04-25 | 2018-01-31 | 2018-05-15 | 2018-01-31 | 3 | 100 | EUR | |
| 01 | RIC_Q101DT | COV_Q101DT | 1010 | 01 | 2018-01-01 | 2018-03-25 | 2018-02-25 | 2018-03-25 | 2018-04-25 | 2018-05-25 | 2018-01-31 | 2018-05-15 | 2018-01-31 | 3 | 200 | EUR | |
| 01 | RIC_Q101DT | COV_Q101DT | 1010 | 01 | 2018-01-01 | 2018-04-25 | 2018-03-25 | 2018-04-25 | 2018-05-14 | 2018-06-25 | 2018-01-31 | 2018-05-15 | 2018-01-31 | 3 | 300 | EUR | |
| 01 | RIC_Q101DT | COV_Q101DT | 1010 | 01 | 2018-01-01 | 2018-05-25 | 2018-04-25 | 2018-05-25 | 2018-06-25 | 2018-07-25 | 2018-01-31 | 2018-05-15 | 2018-01-31 | 1 | 400 | EUR |