Reinsurance Account

The accounts of the contractual reinsurances are prepared automatically based on the information of the contracts supplied to SISme, where it has been specified both in every contract and in every Line of Business thereof, the codes of the participating companies, their percentage of participation and the percentage of commission paid for participation, as well as the special conditions for bonuses depending on the results obtained and the risks involved in the contract. The facultative reinsurer’s accounts are prepared based on the data entry at the moment of the subscription of the risk.

The system makes the calculations of creation of reserves on the premium during the period and the release of the reserves created during the previous period. It also calculates the payment of interest on the reserve for the previous period affecting the net balance to be paid to the reinsurer.

The other important entry is the application of the distribution of the contract to losses paid, thus affecting the net amount to be disbursed to the reinsurer.

All these applications and calculations produce reports which are checked and verified by the users. The final preparation of the accounts is not made until the reports have been approved.