Surplus treaty

Each risk cedes the part of its sum insured above the retention line retention, up to lines lines, and the same share of every loss on it: min(max(SI - retention, 0), lines * retention) / SI. With a retention of 1m and 9 lines (a capacity of 9m), a 5m risk cedes 80% and a 20m risk 45%. The events must carry sums insured (events_from_years() with sums_insured); it can inure to a per-risk excess of loss in a later stage of an inuring_tower(). Applying it to an aggregate loss or on the grid is refused: it works risk by risk.

Usage

surplus_treaty(name, retention, lines)

Arguments

name

Layer name, unique within a tower.

retention

The retention line; positive.

lines

Number of lines of capacity; positive.

Value

An xol_layer.

Examples

s <- surplus_treaty("surplus", 1e6, 9)
ceded(s, c(2e6, 2e6), sums_insured = c(5e6, 20e6))
#> [1] 2500000