INS-02 — A hurricane's loss is allocated across the whole risk-transfer chain
Event — CAT_HURRICANE_LANDFALL (GLOBAL_INSURANCE_V3, engine10, seed 42, declared-scenario payload restating the audited default book as explicit inputs).
Starting state — a mid-tier US P&C insurer: book PML $850M (insured value $2.0B × cat share 0.425), net retention $120M; a reinsurance program of three participating markets each writing a $130M line of one 390M xs 120M program; a separately modeled retrocession position; a cat-bond book, ILS funds, recoverables; policyholders; a public backstop.
What changed — the hurricane realizes 60% of PML: gross modeled insured loss $510M.
Who bears the consequence — PC_INSURER retention −$120M · ceded $390M across three parallel reinsurance counterparties (REINSURER / GLOBAL_REINSURER / LLOYD_SYNDICATE, −$130M each) · RETROCESSIONAIRE −$0 (attachment not reached — a computed zero) · POLICYHOLDER −$21,000 (deductible + uncovered, own basis) · LOCAL_GOVERNMENT −$200M (uninsured pool × 40%, own basis) · asset side: CAT_BOND_BOOK −$3.6M, ILS books and recoverables per receipt.
Key numbers — identity exact: 120M + 3×130M = 510M; sum(reinsurer recoveries) = ceded total. The scenario allocates the ceded loss across three reinsurance counterparties. The retrocession position produces zero recovery under the parameters actually resolved by the model; separately declared retrocession fields were not consumed by this row.
Boundary — parallel shares, NOT a sequential tower (proven in the reconciliation); policyholder/backstop rows are parallel ledgers on their own declared bases; F9 allocation layer UNVALUED (RFC-09); retro zero resolved on disclosed defaults (documented).
Evidence status — VERIFIED_EXISTING; rerun on freeze commit c3229eed7ed268d9677ce2a7333ecd4417e5fa42,
regression-identical; reconciliation object in technical/hurricane_reconciliation/.