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| How Trust Alliance went about claiming for its earthquake losses |
| Promiseland would submit a PLA to Trust Alliance. (Generally, this is the first indication of a claim.) The latter would estimate the size of the claim and request for a copy of the loss adjustor’s report from Promiseland, if necessary. Trust Alliance plays little or no role in the claims assessment. Trust Alliance would then enter some basic information of the claims such as the amount to be claimed, into the claims register. As it is not uncommon for several treaties to be hit by the same claim, a computerized system SICS, is in place to collate relevant information to estimate and accumulation. Where necessary, the retrocessionaires should also be advised. Once the claim has been finalized, Trust alliance would receive a definite loss advice (DLA) from the broker of Promiseland. Upon receipt, Trust Alliance would advise the amount of claim involving the treaty. If the amount is equal to or exceeds the cash call limit, Trust Alliance would settle the claims within 10 days. However, if the amount of claim is below the cash limit, it would be settled in the normal way through the technical closings. When appropriate, retrocessionaries may also be called upon to pay for their share of the loss, either by way of cash and or through retro technical closing. (follow a similar procedure as the cedant) |
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| Claims Procedure |
| Treaty claims notification |
| (1) Preliminary loss advice (2) Estimate claim amount (3) Request for loss adjusters' report (4) Enter into claims register (5) Estimate accumulation (6) Advice retrocessionaires, if necessary |
| (1) Define loss advice (2) If loss amounts equal to or exceeding cash call limits, settle within 10 days (3) Otherwise, settle through technical closing |
| (1) Advice retrocessionaires if loss amounts equal to or exceeding retro cash call limit |
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