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EDIFACT message guide · Insurance

RECALC Reinsurance calculation

The UN/EDIFACT message used to show calculations based on the loss ratio or technical result of a reinsurance contract, such as commission adjustments.

Sent by
Insurer, reinsurer or broker
Received by
Counterparty to the reinsurance contract
Standard
UN/EDIFACT · Batch message
X12 equivalent
No direct equivalent

What is the EDIFACT RECALC message?

RECALC is the UN/EDIFACT reinsurance calculation message. The directory describes it as a generic message used in reinsurance to show various types of calculation based on the loss ratio or on the technical result of a reinsurance contract or program, mainly in the area of commissions.

Many treaties adjust commissions or pay profit shares depending on how the business performed. The calculation message shows the inputs and steps, so the counterparty can verify the adjustment before it is booked in a technical account.

How the EDIFACT RECALC message worksDiagram of the UN/EDIFACT RECALC Reinsurance calculation message. Insurer, reinsurer or broker sends it to counterparty to the reinsurance contract. It usually follows RETACC. It is usually followed by RETACC. Inside the UNB and UNH envelopes, the directory D.21A requires, in the start of message: GEI (Processing information) and body and segment groups: the required SG1 loop with NAD (Name and address), DTM (Date/time/period) and the required SG2 loop with REL (Relationship), CUX (Currencies) and the required SG3 loop with ARD (Monetary amount function) and the required SG4 loop with MOA (Monetary amount). 2 conditional segment groups are listed by their trigger segment.How the EDIFACT RECALC message worksReinsurance calculation: who sends it, where it fits and what the directory marks mandatory1 WHERE IT FITSUSUALLY FOLLOWSRETACCReinsurance technicalaccountRECALCSENDERInsurer, reinsurer orbrokerRECEIVERCounterparty to thereinsurance contractCONTRL syntax report back, if agreedUSUALLY FOLLOWED BYRETACCReinsurance technicalaccount2 WHAT DIRECTORY D.21A REQUIRESInterchange: sender and recipient IDsUNB … UNZMessage RECALCUNH … UNTSTART OF MESSAGEGEIProcessing informationBODY AND SEGMENT GROUPSMandatory group SG1 · repeats up to 9NADName and addressDTMDate/time/period+ required SG2 (REL) and 2 conditional groups, starting with:RFFCUXBlue box: mandatory segment group. Conditional groups are listed by the trigger segment that starts them; a group is sent only when its data applies.Conditional segments outside groups are not drawn.Structure: mandatory segments and groups in the UN/EDIFACT directory D.21A listing for RECALC. Your trading partner's implementation guide adds itsown requirements.
How the EDIFACT RECALC message worksDiagram of the UN/EDIFACT RECALC Reinsurance calculation message. Insurer, reinsurer or broker sends it to counterparty to the reinsurance contract. It usually follows RETACC. It is usually followed by RETACC. Inside the UNB and UNH envelopes, the directory D.21A requires, in the start of message: GEI (Processing information) and body and segment groups: the required SG1 loop with NAD (Name and address), DTM (Date/time/period) and the required SG2 loop with REL (Relationship), CUX (Currencies) and the required SG3 loop with ARD (Monetary amount function) and the required SG4 loop with MOA (Monetary amount). 2 conditional segment groups are listed by their trigger segment.How the EDIFACT RECALCmessage worksReinsurance calculation: who sends it, where itfits and what the directory marks mandatory1 WHERE IT FITSUSUALLY FOLLOWSRETACCReinsurance technical accountRECALCSENDERInsurer,reinsurer orbrokerRECEIVERCounterparty tothe reinsurancecontractCONTRL syntax report back, if agreedUSUALLY FOLLOWED BYRETACCReinsurance technical account2 WHAT DIRECTORY D.21A REQUIRESInterchange: sender and recipient IDs(UNB … UNZ)Message RECALC (UNH … UNT)START OF MESSAGEGEIProcessing informationBODY AND SEGMENT GROUPSMandatory group SG1 · repeats upto 9NADName and addressDTMDate/time/period+ required SG2 (REL) and 2 conditionalgroups, starting with:RFFCUXBlue box: mandatory segment group. Conditionalgroups are listed by the trigger segment thatstarts them; a group is sent only when its dataapplies. Conditional segments outside groups arenot drawn.Structure: mandatory segments and groups in theUN/EDIFACT directory D.21A listing for RECALC.Your trading partner's implementation guide adds itsown requirements.

How to read this diagram: the top row shows who sends RECALC, to whom, and which messages usually come before and after it. The lower part shows what the directory D.21A itself requires: the envelopes around RECALC and the segments and segment groups it marks mandatory. Conditional groups are listed by their trigger segment rather than drawn in full. This is the directory's minimum, not a trading partner's requirement: a message implementation guide, such as an industry subset or a partner’s own guide, usually makes some conditional groups mandatory, restricts the codes and may use an older directory.

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When it is used

  • Calculating sliding-scale commission adjustments
  • Calculating profit commission
  • Showing the basis for loss-ratio-based adjustments

Where it fits in the message flow

Usually follows RETACC Reinsurance technical account
This message RECALC Reinsurance calculation
Usually followed by RETACC Reinsurance technical account

Structure

Mandatory segments in RECALC (directory D.21A)

In UN/EDIFACT directory D.21A, the RECALC message has 31 segment positions arranged in 6 segment groups. These are the segments and segment groups marked mandatory at message level, in order; a mandatory group is shown with the segment that starts it. Segments inside conditional groups are needed only when the group is used. This is the directory’s requirement, not your trading partner’s: each partner’s message implementation guide names the directory it uses, often an older one such as D.96A or D.01B where the structure can differ, makes some conditional segments mandatory and restricts the codes.

  • UNH
  • GEI
  • SG1 (NAD)
  • DTM
  • SG2 (REL)
  • UNT

Practical example

RECALC in practice

A quota share treaty has a sliding-scale commission that depends on the loss ratio. After the year closes, the cedent sends the reinsurer a RECALC with earned premium, incurred losses, the resulting loss ratio and the commission adjustment. The reinsurer checks it, and the adjustment is booked in the next technical account.

Implementation

Implementation considerations for RECALC

  • Show all inputs needed to reproduce the calculation.
  • Apply the contract's calculation rules exactly.
  • Agree the periods and data sources used.
  • Link the calculation to the account entry it produces.

How ECOM helps

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Industry

Financial Services

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Solution

Financial Document Automation

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Solution

B2B Integration

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Compare X12 and EDIFACT, or see answers to general questions in the EDI FAQ.

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