title = "Loss Allocation Procedures"

content = """
Loss allocation determines how each claim or loss is shared between cedent and reinsurer(s). Correct allocation is critical for accurate reporting and recovery.

**Proportional Treaties:** Allocate losses in the same proportion as premium. A 60% quota share means 60% of each loss is ceded. Allocation is straightforward once the loss is finalized.

**Non-Proportional Treaties:** Allocate only when the loss exceeds the attachment point. The reinsurer pays the amount above attachment up to the layer limit. Multiple layers require cascading allocation from the lowest layer upward.

**IBNR and Reserves:** Reinsurers share in incurred but not reported (IBNR) reserves for proportional treaties. For XoL, reserve allocation depends on whether the estimated loss exceeds attachment.
"""  # noqa: E501

version = "0.0.1"
