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You require this component if you share risks with other insurance companies and realize coinsurance business as the lead insurer.


The following functions and processes control coinsurance business in Collections/Disbursements :

Coinsurer Settings

The coinsurers exist as business partners with accounts and contracts in the system and are identified by the coinsurance keys. It is mandatory for a coinsurer to have one contract for premium shares and one contract for claim shares. With costs that occur as a result of processing business transactions for the coinsurer, you use one cost contract for premiums and one cost contract for claims, with the coinsurer as the business partner.

Posting Premiums, Claims and Costs

The system identifies the coinsurance sharesthanks to G/L items for a document. When posting a document, the system checks whether the G/L-side specifications defined for the document match the coinsurer specifications. A G/L item is then identified as a coinsurance share if its characteristics match the values defined for the coinsurance key.

Premiums and claims from policyholders are posted to the contracts for the policyholder. The amount for the document is distributed to the G/L items for the lead insurer and the participating coinsurers, according to the agreed quotas.

Costs that occur for processing business transactions for the coinsurer are posted to the appropriate costs contracts for the coinsurer. The premium documents, which are posted to the policyholder, and the associated costs or claims documents are linked by a reference number, the same due date, and other referenced specifications in the costs document.

Monitoring Coinsurance-Relevant Documents

If coinsurance-relevant documents have been identified, the system monitors the clearing status of these documents, creates a flag for posting coinsurance shares and defines the posting amounts the system is to create for the coinsurer.

Postings to the coinsurer are flagged when the premiums from policyholders have been (partially) cleared or the claims totals have been disbursed ( credit procedure), or before clearing the coinsurance-relevant document ( debit procedure).

When reversing a coinsurance-relevant document, the system creates the appropriate offsetting postings for the contracts of the coinsurer, for the debit procedure and the credit procedure. Clearing resetting is only taken into account in the actual procedure.

In the settings for posting and identification of coinsurance shares for each coinsurance key, you define which procedure is to be applied. You can define the procedures for premiums and claims separately.

Posting of Coinsurance Shares

A mass activity performs the actual posting of coinsurance shares (summarized premium and claim shares, as well as costs) to the contracts for the coinsurer. The system processes all posting flags that exist at this point.

When posting coinsurance shares to the coinsurer, the system creates correspondence (coinsurance notifications, correspondence type V035) to the coinsurer.

Processing Coinsurance-Relevant Statistical Items
Coinsurance History

The system stores all relevant data in a coinsurance history. You can archive coinsurance histories.