Hi Mantana,
I remember that during my last visit to Bangkok, we have agreed on the following approach for Inward Treaty IBNR calculation for each business class moving forward:
• If the inward treaty net and gross case reserves are the same, then the IBNR should be the same. However, if the case reserves is different, look at the inward treaty premium:
o If the inward treaty business is not retrocession out from the company (i.e. there is no difference in net and gross inward treaty premium), then the inward treaty BE IBNR is the same.
o If the inward treaty business is retrocession out from the company (i.e. there is difference in net and gross inward treaty premium), then the inward treaty BE IBNR calculation follows the current approach. So, both net and gross inward treaty business will have different IBNR.
I had looked through the worksheets just now, but no revision in the formula seemed to be made (for example, since now inward treaty premium is the condition for the gross and net inward treaty IBNR to be different, shouldn’t we prepare the entry column in the IBNR_TI tab for this check?). Feel free to let me know if you have done any to incorporate the above approach.
Hi Mantana,I remember that during my last visit to Bangkok, we have agreed on the following approach for Inward Treaty IBNR calculation for each business class moving forward:• If the inward treaty net and gross case reserves are the same, then the IBNR should be the same. However, if the case reserves is different, look at the inward treaty premium:o If the inward treaty business is not retrocession out from the company (i.e. there is no difference in net and gross inward treaty premium), then the inward treaty BE IBNR is the same.o If the inward treaty business is retrocession out from the company (i.e. there is difference in net and gross inward treaty premium), then the inward treaty BE IBNR calculation follows the current approach. So, both net and gross inward treaty business will have different IBNR.I had looked through the worksheets just now, but no revision in the formula seemed to be made (for example, since now inward treaty premium is the condition for the gross and net inward treaty IBNR to be different, shouldn’t we prepare the entry column in the IBNR_TI tab for this check?). Feel free to let me know if you have done any to incorporate the above approach.
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