What is coinsurance in SAP FS-CM - Claims Management?

SAP Term: coinsurance

• Component: FS-CM

• Component Name: Claims Management

• Description: Agreement between several insurers to associate in sharing a risk. The participation of the individual insurer is governed by either a participation quota percentage of the sum insured or by a fixed sum The participating insurers share the premium and loss payouts in the same proportion as the risk.

Smart SAP Assistant

• Key Concepts: 
  Coinsurance is a feature of the FS-CM Claims Management component of SAP. It is a type of risk-sharing agreement between two or more parties, in which each party agrees to pay a certain percentage of the total cost of a claim. For example, if two parties agree to a coinsurance agreement, one party may agree to pay 80% of the total cost of a claim while the other party pays the remaining 20%. 
  
  How to use it: 
  In SAP, coinsurance can be used to manage risk and reduce costs associated with claims. The coinsurance feature allows users to set up coinsurance agreements between two or more parties, and then track and manage the payments associated with those agreements. This feature also allows users to set up coinsurance agreements for specific types of claims, such as medical or property damage claims. 
  
  Tips & Tricks: 
  When setting up coinsurance agreements in SAP, it is important to ensure that all parties involved are aware of their obligations and responsibilities. Additionally, it is important to ensure that all payments associated with the coinsurance agreement are tracked and managed properly. 
  
  Related Information: 
  For more information on coinsurance and how it can be used in SAP, please refer to the official SAP documentation on FS-CM Claims Management. Additionally, there are many online resources available that provide detailed information on how to set up and manage coinsurance agreements in SAP.