apply_deductible_limit: Apply a deductible and limit to claims

In NetSimR: Actuarial Functions for Non-Life Insurance Modelling

Apply a deductible and limit to claims

Description

Works out what a reinsurance structure cedes (or, for an excluded layer, leaves) of each claim, for pricing a layer or checking the simulator's figures by hand.

Usage

apply_deductible_limit(
  gross_claims_data,
  reinsurance_structure,
  deductible,
  limit
)

Arguments

gross_claims_data	A vector of Claims.
reinsurance_structure	The chosen reinsurance structure, a single string. Options are: 'No Reinsurance Structure', 'Unlimited Layer', 'Limited Layer', 'Exclude Layer'; anything else is an error.
deductible	The deductible of the reinsurance structure, zero or more. Not used by 'No Reinsurance Structure'.
limit	The limit of the reinsurance structure, zero or more. Used only by 'Limited Layer' and 'Exclude Layer'.

Value

A vector with one value per claim: for 'Unlimited Layer' and 'Limited Layer', the amount ceded to the layer; for 'Exclude Layer', the claims with the layer taken out (the claims less what a 'Limited Layer' with the same deductible and limit would cede); for 'No Reinsurance Structure', the claims unchanged. Stops with an error when a deductible or limit the structure uses is negative.

Examples

apply_deductible_limit(c(100, 50, 20), 'Limited Layer', 40, 20)
apply_deductible_limit(c(100, 50, 20), 'Limited Layer', 10, 30)
apply_deductible_limit(c(100, 50, 20), 'Exclude Layer', 40, 20)

NetSimR documentation built on Sept. 30, 2026, 5:13 p.m.