Loss corridor — with_loss_corridor • prospicio

The same layer with a loss corridor: of the annual layer loss at 100% after the annual deductible, the cedant keeps retained of the part between lower and upper; the annual limit then caps what is left, so the reinsurer still pays up to the full annual limit. Reinstatement premiums follow the loss after the corridor. A corridor quoted as loss ratios lr on the reinsurer's premium P for a placed share s is lr * P / s (for a quota share, P / s is the subject premium).

Usage

with_loss_corridor(layer, lower, upper, retained = 1)

Arguments

layer: An xol_layer (any contract type).
lower: Lower bound; non-negative.
upper: Upper bound; finite, above lower.
retained: Share of the band the cedant keeps, in (0, 1].

Value

An xol_layer.

Examples

# A 30% quota share; the cedant keeps the loss ratio between 70% and 90%
# of a subject premium of 100.
qs <- with_loss_corridor(quota_share("QS", 0.3), 70, 90)
ceded(qs, c(50, 30))
#> [1] 21
ceded(qs, 120)
#> [1] 30