Stop-Loss Attachment
Calculate specific and aggregate stop-loss recoveries from supplied attachments.
Description
Stop-loss attachments define the loss retained before a recovery layer begins.
Stop-loss attachments define the loss retained before a recovery layer begins. This model calculates specific and aggregate recoveries independently.1
Calculate specific and aggregate stop-loss recoveries from supplied attachments.
When to use Stop-Loss Attachment
Use this tool to calculate specific and aggregate stop-loss recoveries from supplied attachments.
Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.
How to use Stop-Loss Attachment and understand its results
- Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.
- Enter claimAmount, specificAttachment, specificLimit, annualAggregateClaims, aggregateAttachment, aggregateLimit using the field table and calculation rules, then run the tool.
- Read specificRecovery, aggregateRecovery, totalRecovery. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| claimAmount | Claim amount | number; minimum: 0 | Required |
| specificAttachment | Specific attachment | number; minimum: 0 | Required |
| specificLimit | Specific limit | number; minimum: 0 | Required |
| annualAggregateClaims | Annual aggregate claims | number; minimum: 0 | Required |
| aggregateAttachment | Aggregate attachment | number; minimum: 0 | Required |
| aggregateLimit | Aggregate limit | number; minimum: 0 | Required |
Enter nonnegative claim, annual aggregate and corresponding attachments/limits. Return both capped recoveries and their sum. Equality at attachment yields zero.
recovery=min(limit,max(0,loss−attachment)); total=specific+aggregate Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| specificRecovery | Specific stop-loss recovery | number; minimum: 0 |
| aggregateRecovery | Aggregate stop-loss recovery | number; minimum: 0 |
| totalRecovery | Total modeled recovery | number; minimum: 0 |
{
"input": {
"claimAmount": 500000,
"specificAttachment": 100000,
"specificLimit": 300000,
"annualAggregateClaims": 2000000,
"aggregateAttachment": 1800000,
"aggregateLimit": 500000
},
"output": {
"specificRecovery": 300000,
"aggregateRecovery": 200000,
"totalRecovery": 500000
}
}Limitations and assumptions
No coordination prevents double counting between the two calculations. Supply a compatible basis; no contract, eligibility or actual reimbursement is evaluated.
Numeric inputs must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use Umbrella Drop-Down: Calculate umbrella recovery with an optional underlying drop-down. For a complementary task, use Retrocession Waterfall: Apply retrocession attachments and limits to a gross ceded loss.
References
-
Stop-Loss Attachment — tool.io
Similar or alternative tools
- Umbrella Drop-Down
Calculate umbrella recovery with an optional underlying drop-down.
- Retrocession Waterfall
Apply retrocession attachments and limits to a gross ceded loss.