How To Fix /PM0/ABD_PR_MESSAGE052 - Claim share of lead must equal 0% for fronting

SAP Error Message - Details

• Message type: E = Error

• Message class: /PM0/ABD_PR_MESSAGE -

• Message number: 052

• Message text: Claim share of lead must equal 0% for fronting

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message /PM0/ABD_PR_MESSAGE052 - Claim share of lead must equal 0% for fronting ?

  The SAP error message /PM0/ABD_PR_MESSAGE052 indicates that there is an issue with the claim share of the lead in a fronting scenario. This error typically arises in the context of insurance or reinsurance processes where fronting arrangements are involved. Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  
  Fronting Arrangement: In a fronting arrangement, one insurer (the fronting insurer) issues a policy on behalf of another insurer (the reinsurer). The claim share for the lead insurer in such arrangements should be set to 0% because the lead insurer does not retain any risk; it merely acts as a conduit for the reinsurance.
  
  
  Configuration Error: The error may occur due to incorrect configuration in the SAP system where the claim share for the lead insurer is not set to 0% as required for fronting arrangements.
  
  
  Data Entry Error: There may be a data entry error where the claim share percentage has been incorrectly entered or calculated.
  
  
  Solution:
  
  
  Check Claim Share Configuration: Review the configuration settings for the fronting arrangement in the SAP system. Ensure that the claim share for the lead insurer is set to 0%. This may involve checking the relevant master data or policy settings.
  
  
  Adjust Data Entry: If the claim share has been incorrectly entered, correct the entry to reflect a 0% claim share for the lead insurer.
  
  
  Consult Documentation: Refer to the SAP documentation or guidelines specific to your organization regarding fronting arrangements to ensure compliance with the required settings.
  
  
  System Update: If the issue persists, it may be necessary to consult with your SAP support team or technical team to investigate if there are any underlying system issues or bugs that need to be addressed.
  
  
  Training and Awareness: Ensure that users involved in data entry and configuration are trained on the specific requirements for fronting arrangements to prevent future occurrences of this error.
  
  
  Related Information:
  
  Fronting Insurance: Understand the concept of fronting insurance and how it operates within the insurance and reinsurance industry.
  SAP Modules: Familiarize yourself with the specific SAP modules being used (e.g., SAP FS-RI for reinsurance) and their functionalities related to claims and policies.
  Error Handling: Develop a standard operating procedure for handling such error messages, including steps for troubleshooting and escalation.
  
  By addressing the configuration and data entry aspects, you should be able to resolve the error message and ensure that the fronting arrangement is correctly set up in the SAP system.