What is allocation in SAP FS-RI - Reinsurance?

SAP Term: allocation

• Component: FS-RI

• Component Name: Reinsurance

• Description: The assignment of business to a reinsurance treaty; the risks = the insurance policies are allocated to a treaty.

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• Key Concepts: 
  Allocation in FS-RI Reinsurance is the process of distributing reinsurance premiums and claims among different reinsurers. It is used to determine the amount of risk each reinsurer is responsible for, and to ensure that the total amount of premiums and claims are correctly allocated. 
  
  How to use it: 
  In FS-RI Reinsurance, allocation is done by creating an allocation plan. This plan defines the rules for how the premiums and claims should be distributed among the reinsurers. The plan can be based on a variety of factors, such as the type of risk, the amount of risk, or the duration of the policy. Once the plan is created, it can be used to automatically allocate premiums and claims to each reinsurer. 
  
  Tips & Tricks: 
  When creating an allocation plan, it is important to consider all relevant factors. This will ensure that the plan is fair and accurate, and that all reinsurers are treated equally. Additionally, it is important to review the plan regularly to ensure that it is still valid and up-to-date. 
  
  Related Information: 
  For more information about allocation in FS-RI Reinsurance, please refer to SAP's documentation on the topic. Additionally, there are many online resources available that provide detailed information about how to create an effective allocation plan.