Policy History in Accounting Currency

Policy History in Accounting Currency

Functional Design Document
Distribution : / IRIS User Group
Reference : / Q:\Lmd\Development\300038274 Policy History Figures in Accounting Currency-SVB\02 Initial Analysis\IUG-300038274-Policy History Figures in Accounting Currency-Functional.DRAFT.doc
Author : / John Eady
Applicability : / Product
Customers / IRIS 8.14
SVB Syndicates Ltd
RebusIS Reference : / SN 300038274
Version : / 01
Revision Date : / 19th August 2004

© Copyright Rebus Insurance Systems Ltd. 2004

This document contains information which is confidential and of value to Rebus Insurance Systems Ltd. It may be used only for the agreed purpose for which it has been provided. Written consent is required before any part is reproduced. All products or services mentioned herein are trademarks of their respective owners.

Note: This document is submitted to the IRIS User Groupsolely for informational purposes and shall not be deemed or construed to be a contract or agreement binding on Rebus Insurance Systems Ltd. Only signed hard copies and electronic masters of documents will be controlled. Any other copy may not be current. RebusIS is a member of the Xchanging Group. The Rebus name is owned by Rebus Group Ltd, a member of the Rebus HR Group, and used under licence.

1.Amendment History

Reason / Date / NewReference
DRAFT-IUG Specific version for Information Only / 19/8/04 / Q:\Lmd\Development\300038274 Policy History Figures in Accounting Currency-SVB\02 Initial Analysis\IUG-300038274-Policy History Figures in Accounting Currency-Functional.DRAFT.doc

Contents

1.Amendment History......

2.Introduction......

2.1High Level Business Overview......

2.2Background......

2.3Scope......

2.4Detailed Requirements......

3.Functional Design......

3.1Policy History......

3.2Policy History Updates......

3.2.1Bureau Closings......

3.2.2Manual Closings......

3.2.3Bureau Claims Batch Update......

3.2.4Claim Transaction Input......

3.2.5OCR (Outstanding Claim Reserve)......

3.2.6UPR (Unearned Premium Reserve)......

4.Unit Test Plan......

2.Introduction

2.1High Level Business Overview

SVB Syndicates require the IRIS Policy History Enquiry to allow Accounting Currency totals to be displayed.

2.2Background

Currently the IRIS Policy History Enquiry will allow either:-

One Original Currency total,
or a Base Currency (normally GBP) total for all Original Currency amounts.

This is selected by a drop-down box where users can select an Original Currency code or the Base Currency total.

2.3Scope

The Policy History enquiry is user configurable and can be invoked from within a Policy or as a stand alone enquiry. The functionality for this enhancement should be available to all variants of the Policy History enquiry.

2.4Detailed Requirements

The Policy History enquiry will allow figures to be displayed in one of the following Currency types:-

Original – only one currency will be displayed at any one time,
or Accounting – only one currency will be displayed at any one time,
or Base – all Original Currency amounts will be converted to Base Currency and totalled.

3.Functional Design

3.1Policy History

The Policy History enquiry is user configurable and the version displayed below is that used by SVB.

A new Currency Type drop-down should be added to the ‘Filters’ area of the screen. This should have the following values:-

Original – for Original Currency.
Accounting – for Accounting Currency.
Base – for Base Currency.

and be positioned where the Currency Code drop-down is currently placed. The existing Currency Code drop-down should be placed directly below the new drop-down.

The default for this enquiry should be for Base Currency to be selected. In this instance the Currency Code filter should be set to ‘ZZZ’, be output only and the total of all the Original Currency amounts (converted to Base Currency) should be displayed.

When Original Currency is selected the Currency Code filter should be input capable and the first Original Currency (in alphabetical order) will be displayed with its related amounts. The drop-down should allow selection of any other Original Currency, and its amounts, on the Policy.

When Accounting Currency is selected the Currency Code filter should be input capable and the first Accounting Currency (in alphabetical order) will be displayed with its related amounts. The drop-down should allow selection of any other Accounting Currency, and its amounts, on the Policy.

A further Exchange Rate drop-down is required to allow the exchange rates types to be selected and should be added to the ‘Revalue’ area of the screen, next to the Revalue options. This drop-down will only be valid when Accounting or Base Currency amounts have been selected in the Currency Type drop-down and have values of:-

Current
Advised

For Original Currency amounts this Exchange Rate drop-down should be empty and output only.

This drop down selection will only apply to outstanding amounts for which it will be possible to display them either using the current exchange rates or the original booked exchange rates.

When Current rates are selected the rates required should be retrieved from the IRIS Exchange Rates file to convert the Original Currency amount into either an Accounting or Base Currency amount.

For Advised rates the accounting currency amount and base amount at the time the transaction was entered will be stored and these will be used. This will be equivalent to those rates advised on the Bureau Message (e.g. SCM in the case of Lloyd's) in the case of accounting currency amounts. And in the case of Base Currency it is equivalent to the rate that was Current at the time the message was processed will be used.

Current/Advised rate selection will only be effective for Claim Outstanding amounts. Other types e.g. Premium or Paid Claims, will always be unaffected by this drop down selection and will always be displayed at the booked (i.e. Advised) rates regardless of this Exchange Rate selection.

3.2Policy History Updates

Information used on the Policy History enquiry is stored on four summary files:-

Policy History (USHSREP).
Claim Summary (UKKSREP).
OCR Balances (UKOSREP).
UPR Balances (UKUQREP).

These files will need to be amended to allow Original, Accounting and Base Currency figures to be stored separately at the advised exchange rates (for Accounting Currency amounts) or those that were current at the time (for Base Currency amounts).

3.2.1Bureau Closings

Closings Update writes to the Policy History file for transactions supplied on the Bureau Closings message e.g. USM. At present only Original and Base Currency amounts are stored. The Closings Update function will require amendment such that it now outputs Original, Accounting and Base Currency amounts to the Policy History file.

The Original, Accounting and Base Currency amounts for a Closing are already calculated and stored on the Statistics Amounts file (USS3REP). These amounts should be used when updating the Policy History file.

3.2.2Manual Closings

Closings Update writes to the Policy History file for Manual Closings. At present only Original and Base Currency amounts are stored. The Closings Update function will require amendment such that it now outputs Original, Accounting and Base Currency amounts to the Policy History file.

The Original, Accounting and Base Currency amounts for a Closing are already calculated and stored on the Statistics Amounts file(USS3REP). These amounts should be used when updating the Policy History file.

3.2.3Bureau Claims Batch Update

Batch Update writes to the Claim Summary file for transactions supplied on the Bureau Claims message e.g. SCM. At present only Original and Base Currency amounts are stored. The SCM Batch Update function will require amendment such that it now outputs Original, Accounting and Base Currency amounts to the Claim Summary file.

The Original, Accounting and Base Currency amounts for a Claim Transaction are already calculated and stored on the Claim Transaction file (UKKTREP). These amounts should be used when updating the Claim Summary file.

3.2.4Claim Transaction Input

Claim Transaction Input allows Claim Transactions to be entered manually and also updates the Claim Summary file. At present only Original and Base Currency amounts are stored. The Claim Transaction Input function will require amendment such that it now outputs Original, Accounting and Base Currency amounts to the Claim Summary file.

3.2.5OCR (Outstanding Claim Reserve)

OCRs are entered via Manual Closings and are stored on the OCR Balances file. At present only Original and Base Currency amounts are stored. This will require amendment such that Original, Accounting and Base Currency amounts can be recorded.

3.2.6UPR (Unearned Premium Reserve)

UPRs are entered via Manual Closings and are stored on the UPR Balances file. Since UPRs are stored purely as percentages there should be no requirement for any changes in this area. The percentage is simply applied to the displayed Policy History premium fields to calculate the UPR amount.

4.Unit Test Plan

No. / Test / Expected Result
1.1 / Check availability of new Currency Type drop-down and positioning of Currency Code filter. / New Currency Type drop-down for Original, Accounting and Base Currency should be available.
Currency Code filter should be available and positioned below new Currency Type drop-down.
1.2 / Check Currency Code filter options available for different settings of Currency Type code. / For Original Currency selection only those Original Currencies on the policy should be available. Only amounts relating to the selected currency should be displayed.
For Accounting Currency selection only those Accounting Currencies on the policy should be available. Only amounts relating to the selected currency should be displayed.
For Base Currency the filter should be blank and output only. The sum of converted Original Currency amounts should be displayed.
1.3 / Check Exchange Rate type filter. / Values of Current and Advised should be available.
This should affect only Claim Outstanding type amounts. For Advised, selected amounts should be displayed at the rates that were provided when advised via the Bureau message or when manually entered. For Current, the latest rates should be retrieved from the IRIS Exchange Rates file.
For non-Outstanding Types e.g. Premiums, Paid Claims, the Advised rate should always be used regardless of the Exchange Rate type selection.
Note: For Base Currency claim outstanding figures the amount shown is effectively at the amount calculated at the exchange rate that was in force at the time the transaction was processed.
1.4 / Check updates to Policy History file for Bureau Closings e.g. USM.
View figures using Policy History enquiry. / Closings Update should be updating Policy History file with Original, Accounting and Base Currency fields from the Statistical files (USS3REP).
1.5 / Check updates to Policy History file for Manual Closings.
View figures using Policy History enquiry. / Closings Update should be updating Policy History file with Original, Accounting and Base Currency fields from the Statistical files (USS3REP).
1.6 / Check updates to Claim Summary for Bureau Claim Transactions e.g. SCM.
View figures using Policy History enquiry. / Bureau Claim Batch Update should be updating Claim Summary file with Original, Accounting and Base Currency fields from the Claim Transaction file (UKKTREP).
1.8 / Check updates to Claim Summary for Manual Claim Transactions.
View figures using Policy History enquiry. / Manual Claim Transaction Input should be updating Claim Summary file with Original, Accounting and Base Currency fields from the Claim Transaction file (UKKTREP).
1.9 / Check updates to OCR Balances file for OCR Manual Closings.
View figures using Policy History enquiry. / OCR Balances file should be updated with Original, Accounting and Base Currency amounts.
2.0 / Check UPR Balances for UPR Manual Closings using Policy History enquiry. / UPR Balances should be displayable in Original, Accounting and Base Currency amounts.
Ref -- / Q:\Lmd\Development\300038274 Policy History Figures in Accounting Currency-SVB\02 Initial Analysis\IUG-300038274-Policy History Figures in Accounting Currency-Functional.DRAFT.doc / Printed 07/06/04

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