PROPORTIONAL TREATY MODULE

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See the NOVUS Walkthrough Guide for general information about the system.


Only those policies which are proportional treaties can be handled by the proportional treaties module.

On accessing the proportional treaties menu via the TTYMEN program option in NOVUS, the policy (treaty) number or transaction number must be specified. Once the policy number has been entered other fields will default to the latest known values.

Certain options on the menu require a specific transaction number to be entered but if entering a new transaction using option 1 on the menu this field should be left blank. The system will automatically assign the next available transaction number once the entry has been saved. The section description is displayed. The system will reject entries for treaty years prior to the policy year.


TTYMEN.PNG


Create a new policy in the usual way.


RISKNEW Treaty.PNG


The policy type must be aligned to a treaty processing group


CODES Treaty codes.PNG


When in the MART program the proportional treaties area on the market are only available to be accessed if a proportional treaty is chosen when the risk was created.


MART Treaty.PNG


Example:



MART Enquiry consolidated.PNG


Transaction processing is carried out in the proportional treaties program and not in the TRANPT program.


TTYMEN.PNG


Proportional treaties understand 100% of the figures from the market.

If transactions have been made on this policy the history will be visible


TTYMEN History enquiry.PNG



For a single transaction this is more like how the transaction was entered (not reflecting what would happen with an inward bordereau as per motor – this is a normal proportional treaty processing route)


TTYMEN Transaction enquiry.PNG


Statement production uses the treaty statement selection option in the TTYMEN program. The selection of the statement depends on market construction:


TTYMEN Treaty statement selection.PNG



Bureau

TTYMEN Bureau treaty statement.PNG


which expands to:


TTYMEN Bureau treaty statement details.PNG

TTYMEN Bureau treaty statement details 2.PNG


Producing:


TTYMEN Bureau treaty statement output.PNG


Open Market

TTYMEN open market treaty statements.PNG



Producing one for the client and one each for the underwriters:


TTYMEN open market treaty statements output.PNG


This is for a posted transaction so the statement is a treaty confirmation to the client and a treaty statement to the U/W.

If the transaction is unposted the word DRAFT appears on the statement.

If setting up a transaction from scratch, enter the transaction as follows:


TTYMEN Treaty transaction entry.PNG


Item Description
Code The options are:
- 'A' - Portfolio assumption (no period)
- 'W' - Portfolio withdrawal (no period)
- 'C' - Cash loss (no period)

or

leave blank for system to display:

- 'i' - initial (new period/year) or
- 's' - supplement (existing period/year)
Period The required period in the treaty (accounting year to which the transaction relates.


NB: If the accounting frequency of the policy is annual i.e. One period per year, then the users will not be prompted for the period number and it will be displayed as '01'

Year The user will be prompted for the treaty year to which the transaction relates. The full four-digit year e.g. '2019/2020' must be entered. Note this is the treaty year, not the policy year. A given treaty (identified by its number, year, and section) may have records spanning several treaty years.
Cash Losses Displays the number of cash losses for this policy
Mkt Mix Displays the market mix for this policy
MVN Mrket Version Number
Currency This is the currency entered by the user, which represents all the amounts used in processing a treaty transaction. It is validated against the currency maintenance table to ensure its validity on the system
Component After the component number has been entered, its type ('V' - variable, or 'T' - text) will be displayed against the component. Once a code has been entered, or selected, the text description will be displayed in the next field
Text/Date The user can enter text or date information. This is the only field on the line accessible if a 'T'-Text component is selected
Credit/Debit This is the amount, in respect of the client, which the user wishes to enter for the component.

A treaty transaction will be referred to as either an 'initial' or a 'supplementary'. The first transaction entered for a period; year, section, and currency will always be an initial entry. The system will recognise this, and set the code field accordingly.

Amendments can be made to the 'initial' until the transaction is posted to the IBA ledger. Thereafter, any transactions for the same period, year, and currency can be saved as a new 'supplementary' record. Only one supplementary entry can be active, i.e. not posted for any one given period, year, section and currency. Separate entries may be made for a given period, year, and section for different currencies. Only one portfolio assumption and withdrawal is permitted for any one currency



Taxes and fees

TTYMEN Treaty transaction entry taxes fees.PNG


After all open market selected taxes have been applied, tab to the component section. The component is then selected from the selective or secondary taxes list of values:


TTYMEN Treaty transaction entry components.PNG


TTYMEN Treaty transaction entry completed.PNG


The transaction can now be evaluated, or saved, depending on a successful outcome to requirements: Now (before posting) the documents are DRAFT:


TTYMEN draft treaty statement.PNG

Version History

v 6.0.0 – Updated to latest version

v 5.0.0 – Updated to latest version