See the NOVUS Walkthrough Guide for further information.
Table of Contents
Risk Record Maintenance
The RISKNEW program is used to create a new risk. The next available policy number - or one you have elected - is assigned to the new risk. The risk details are completed (including sections) and saved by clicking. All mandatory fields must be completed before the record can be saved.
Risks can be renewed in the POLREN program.
To Create a New Policy
The RISKNEW program combines the DECLARE, RISKNEW and QUOTENEW programs into one in order to create policies and quotes quickly and easily. The majority of fields can now be completed using a drop-down to reduce errors. The fields also indicate information that may have been missed. Field validation ensures that the data that is input into the form is correct and the program can be navigated via the keyboard or mouse for ease of use.
Checks are made to identify whether the originating program was QUOTEPOL when the declaration is created so that the specific configuration values are pulled through correctly, no unwanted warnings are returned regarding specific configuration values and the market creation is carried out correctly on clicking save or close.
Selecting different routes gives the user different options when creating a new policy or quote. The RISKNEW screen is used for creating or editing existing policies.
Selecting between these will offer different Policy Modes (GID 87):
- Master Contract: Binder (In House) - mode B, Lineslip - mode L, Wholesale - mode W, Facility - mode F
- Policy: Declaration, Off-Policy, Open Market - all mode O.
- Reinsurance: Facultative R/I - mode R, Prop Treaty - mode P, Non-prop Treaty - mode N
- Quote: Facultative R/I - mode R, Open Market - mode O, Prop Treaty - mode P, Non-prop Treaty - mode N
To select a Binder (In House), Lineslip, Facility, or Wholesale binder, the user must first select the Master Contract button. - Remember to include the Max SI per line, and in the Aggregate, and the GWP in the Master fields per section. These are used to warn users when they approach meet the threshold - for facilities different trigger points can be set per section in the FACILITY program, for Lineslips na binders they are currently triggered ast a standard 75%. If the User leaves these fields blank the User will get a warning when they process any declarations that the master capacity is set to zero.
If a Declaration, Off Policy or Open Market, is required, the user must first select the Policy button. If a Facultative R/I or Treaty is required, the user must first select the Reinsurance button. Facultative R/I, Open Market and Treaty quotes can be created by selecting the Quote button.
Policy Type selection. When creating a new risk, the list of values offered for Policy Type will depend on the Policy Mode selection made from the above choices.
- Modes B (In House Binder), L (Lineslip), F (Facility), W (Wholesale) and O (Other - Declarations and Off Policies only) will only return Policy Types mapped to Processing Groups D (Direct Commercial), F (Facultative Reinsurance) or P (Direct Personal Lines).
- Mode O (Other - Open Market) will only return Policy Types mapped to Processing Groups D (Direct Commercial) or P (Direct Personal Lines).
- Mode R (Facultative Reinsurance) will only return Policy Types mapped to Processing Group F (Facultative Reinsurance).
- Mode P (Proportional Treaty) will only return Policy Types mapped to Processing Groups Q (Quota Share) or S (Surplus).
- Mode N (Non-proportional Treaty) will only return Policy Types mapped to Processing Groups R (Stop Loss (XL Ratio)) or X (Excess of Loss).
When editing a legacy risk where the originally selected Policy Type is now invalid, the existing Policy Type will be respected - the Policy Type list of values will contain the legacy Policy Type and then the other valid Policy Types as per the structure detailed above.
Section Selection. The button to the right of the sections field will only appear when a declaration and off-policy selections have been made and a policy selected from the drop-down list. This additional button will allow a user to specify sections from the master policy to be used during policy creation, see image below, and is now a required field for declarations and off policies. If creating or editing a facility, Max GWP (Agg), Max SI/Line and Max SI (Agg) fields are available.
Section periods are created after the policy period has been completed.
Use the tab key to use the next sequential policy number, or enter a number of your own choosing (advisable only for master contracts). On the off-policy route, the policy number must be elected first, before selecting the applicable binder.
Mandatory fields for the system are marked with an asterisk (*), but individual client installations may have further fields set to mandatory. Any required fields that have not been completed are visible at the top right of the screen. Click the red X to highlight the next field to be completed, alternatively, the user can tab to the next required field.
Helix datasets that apply IFRS17 only should record whether a policy is expected to be onerous or non Onerous to support IFRS17.
Please note that as client accounts are divisionalised, the cl/ins/reins list of values will not become available until the division code has been selected.
Complete the rest of the screen ensuring that all mandatory fields are completed. The type of policy chosen dictates the filtering and behaviours of contracts.
Binders should be used only where the attaching in house risks or off policies enjoy the same market structure - including client discount, and constant.
Lineslips (may also be known as binders) and attaching declarations are set up in the DECLARE program - take a copy of the master market and allow for changes in order%, signed lines, client discount/commission/brokerage and U/W deductions.
If the risk is a declaration attaching to a lineslip, NOVUS checks against the master market order and commission percentages in the specific configuration on the section tab of the declaration. If the lineslip maximums are being exceeded in all cases, an appropriate warning will display.
Where a master Lineslip has multiple market versions and the specific configuration values on a declaration exceeds the master maximums for the master market version effective at the inception of the declaration, the user will receive a warning and the specific configuration values on the declaration will be reverted to the master market values for the master market version effective at the inception of the declaration.
The system also checks if there is a valid market for the section at the inception date of the section, and returns a suitable error message if no valid market is found. Note: If the inception date of the declaration or off-policy does need to be amended, this must be done first using the section selector before the selection of the applicable sections. Section periods are created after the policy period has been completed.
The calculation of the policy period description respects leap years.
Wholesale binders are used where no attaching risks are expected and only used to process monthly bordereaux transactions, either through the TRANPT program using PBX (premium bordereau) or through the TRANPTN program for D type transactions for handling variable commissions.
Facilities may be binders in the business model, but allow for flexible watermarks for GWP/agg, GWP/line, and SI/line as well as risks that may be attached on a %age basis, i.e. where an MGA or cover holder elects to place part of a risk on one or more binders or binders and open market, then these binders are to be set up as a FACILITY
Open market policies are for all facultative, and non-proportional treaties. In the risk context menu, available when right-clicking the risk, the 'Create Transaction' option will launch the treaty transaction processing route TTYMEN (rather than the normal transaction processing route TRANPT) where the policy type is mapped to a treaty type processing group.
Complete the rest of the policy tab screen, stating the number of sections to be included, adding currency and rate of exchange to be used.
Open market policies do not invoke capacity check warnings. Where an in-house binder or a lineslip master contract has no maximum GWP/sum insured values completed (e.g. they are null or 0), on-off policies and declarations attaching, the user will be notified that capacity checks are not possible.
Location refers to the country, state or territory in which an insured risk is deemed to be located for regulatory and tax purposes. If the country selected is ‘US – United States of America’ then the option to record the surplus lines brokers option will display in the ‘additional information’ tab.
Additional fields may be optional or advised in a particular client installation including State (State of filing for US business) and the surplus lines broker details etc. The State will default to the RISK_DETAILS field where the physically located risks (such as property) are recorded. (See Document Tags for further information).
If any element of the policy inception or expiry is amended, a warning icon will appear next to the description allowing the description to be refreshed if required by clicking on the icon. If the description refresh is not required, disregarding the warning icon will mean the original description is retained on clicking save.
Where the processing group is Excess of Loss, users can enter Max GWP (Agg), Max SI/Line and Max SI (Agg) fields to drive the message in the claim entry.
An additional field in the additional information tab in the RISKNEW program records the policy basis from a list of values supported by the policy basis code (GID 111): L-losses occurring basis or C-claims made basis. If the user selects the claims-made basis, a further field is made available to record retroactive date at the policy level.
The risk URL field enables risks to be linked to an external online repository showing more information about the risk. This may include a VR (Virtual Reality) tour of the location, document repository, or website. The URL domain will need to be whitelisted to enable the link to resolve to the destination site.
To add a surplus lines broker, use the Surplus Lines Broker program.
Ensure the renewable check box is ticked for all risks assumed to be able to be renewed, if this box is unchecked it will be omitted from the renewals list when the risk expires. Other fields such as reporting frequency will be used in the command console if the client uses this function.
The RI (reinsurance) check box states if this risk is reinsurance or not and controls several behaviours in the system including the selection of the right debit note template and the correct cover note template.
The client details section shows details for the risk client and original assured. (The risk client must already exist on the partner list and not be stopped (stop flag = N, the original assured can be just a text description, however, if addresses are to be stored and sanctions checking is to be performed then an account code must be set up.
Default client commission and default order per cent may be completed in the additional information tab and will be populated into the market on the first pass; once the market has been committed any changes to these figures must be made in both the risk and market screens.
It is strongly advised to complete all fields possible, even if they may not seem needed at the time, retro filling of data is timely and costly.
Section types on each section tab must be unique to allow premiums to be collected and claims to be logged and processed against a single section. (The market is section-based and therefore a new section will be required if there is a change in market structure (order percentage, signed lines, players, or commission rates, but also limits are section based). The section type description displays the section title description (e.g. if a bespoke section title description has been created, this will be displayed instead of the section type code description).
The section title field allows up to a maximum of 32 characters (including special characters).
The alignment of a London market risk code to a section can be a one-to-one or one or more Sections to a London market risk code. In the event of the latter, the production of LPANS in the CLOSE program can be collated by the London market risk code rather than section.
For the London market business, both fields are required.
For non-London market business, it is optional depending on internal processes and reportage requirements.
If risk details are to be used, a default risk item (i.e. property, or workman's compensation) will "enjoy" coverage from one or more sections in the risk. The risk item that belongs to that risk detail must first be created in the CODES program and will be tagged to a particular section type.
For example, a buildings item of a property will be apportioned to the building's section. More than one item can belong to one section, but one item cannot be spread across multiple sections.
All financial, claims and premium type reporting including bordereaux will respect the figures attributed to a section. Only a risk exposure BDX will see risk details in isolation - i.e. one row per property and are not a reflection of the figures on the ledger.
Section type codes must be unique. When a user selects a master binder or lineslip that has non-unique section types and tries to create an off-policy or declaration, an appropriate error message is returned and the user is prompted to correct the master section types.
Risk records, risk details and risk clauses will lock where any claims are present on a risk and will show as locked for edit when the RISKDETS is open for the related risk. The check used to determine the 'locked' status of a policy will check for the presence of "any non-reversed" transactions, as opposed to the existence of "any" transactions.
A workflow status can be derived from the documentation window to the right of the screen. Any appropriate tasks that can be fulfilled at that moment in time can be clicked. If that task has already been completed the button will also have a green tick on it. The screenshot has already had a pro forma schedule created, the market, and limits have been configured, and the debit/credit note issued. A cover note or policy has not yet been issued.
It is normally assumed that either a schedule or a SLIP is produced and either a cover note or a policy is produced. In RISKNEW, the policy issue option becomes available once a pro forma schedule has been produced using PROFSCHED. A slip must be issued before the cover note can be issued, and a proforma schedule must be issued before the policy can be issued.
To Update a Policy
If there are technical entries (transactions) on the policy then all changes, however small, must be carried out via the RISKEND program. Alternatively, browse to the policy required in the navigation pane and double click the policy required.
If there are no transactions then enter the ERISK program and query the database to find the required policy. Click on the edit risk information hyperlink to modify the risk details and section details in the tabs.
Amending Policy Modes
It is not possible to amend a policy mode once a record has been created or to renew or copy a policy from one mode to another. If there is a business requirement to change the policy mode, please contact Morning Data for advice and assistance. It is not possible to change the policy mode selection once it has been made, even prior to saving. The user must close the program and re-launch it if the policy mode selection is incorrect.
To Cancel a Policy
If policy cancellation is required, use the RISKEND program. This program can handle ab initio cancellations, mid-term cancellations, policy extension and policy reinstatement.
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