What is amount of loss in SAP FS-CM - Claims Management?

SAP Term: amount of loss

• Component: FS-CM

• Component Name: Claims Management

• Description: Sum of all compensation, external loss adjustment expenses and loss reserves formed for a financial year, or year in which loss is reported in connection with an insurance policy, customer contact or in-force insurance business.

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• Key Concepts: 
  Amount of Loss is a term used in SAP FS-CM Claims Management to refer to the total amount of money that an insurance company has to pay out for a claim. This amount is calculated based on the type of claim, the amount of coverage, and any other factors that may affect the payout. 
  
  How to use it: 
  In SAP FS-CM Claims Management, the Amount of Loss is used to determine the total amount of money that an insurance company must pay out for a claim. This amount is calculated based on the type of claim, the amount of coverage, and any other factors that may affect the payout. The Amount of Loss can then be used to determine the total cost of a claim and help insurers make decisions about how to handle claims. 
  
  Tips & Tricks: 
  When calculating the Amount of Loss in SAP FS-CM Claims Management, it is important to consider all factors that may affect the payout. This includes any additional costs associated with the claim, such as legal fees or medical expenses. Additionally, it is important to consider any discounts or incentives that may be available for certain types of claims. 
  
  Related Information: 
  The Amount of Loss is just one part of the claims process in SAP FS-CM Claims Management. Other important components include determining the cause of loss, assessing liability, and negotiating settlements. Additionally, insurers must also consider other factors such as customer service and risk management when handling claims.