Reinsurance — treaties and cessions

In proportional treaties (quota share, surplus) the reinsurer takes a fixed percentage of premiums and claims for every ceded policy. In non-proportional treaties (excess of loss, stop loss) the reinsurer steps in only when the claim exceeds a predefined priority, paying up to the contractual limit. NewPicass 14.Net supports both with separate calculation engines.

Facultative cession is reinsurance of a single policy, evaluated case by case, outside the automatic treaty. Typically used for risks above the underwriting line, special warranties, concentrated exposures. The module handles offer request to reinsurer, accept/decline, specific contractual terms and cession computation.

Quota share (QS) cedes a fixed percentage (e.g. 40%) of all premiums and all claims of every policy in the line covered by the treaty to the reinsurer. The module applies the share to each issued policy, computes the cedant commission (e.g. 30% on ceded premium), generates the premium/claims BDX to the reinsurer.

XL means the reinsurer pays only the part of claims exceeding a threshold (priority) up to a limit. Example: XL 1M xs 500k = reinsurer pays the claim share between 500k and 1.5M. When a claim exceeds the priority, the module automatically computes the recoverable share, issues loss advice to the reinsurer and tracks the recovery.

Retrocession is the reinsurance of the reinsurer: when a reinsurer cedes part of the risk to another reinsurer (retrocessionnaire). For NewPicass 14.Net clients operating as reinsurers, the module natively supports retrocession management: own retrocession treaties, outbound cessions, recoveries computation from retrocessionnaires.

Yes. For clients operating as coverholders or MGAs toward Lloyd's syndicates, the reinsurance module generates cession BDX in the managing agent's required format, maps Risk Codes by line/underwriting year, and interfaces with the BDX management module for periodic delivery via SFTP or encrypted email.