What is estimated premium income in SAP FS-RI - Reinsurance?

SAP Term: estimated premium income

• Component: FS-RI

• Component Name: Reinsurance

• Description: An estimation of the premium income of a proportional reinsurance treaty for the coming financial year by the cedent.

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• Key Concepts: 
  Estimated Premium Income is a term used in the FS-RI Reinsurance component of SAP. It is the estimated amount of premium income that an insurance company expects to receive from its reinsurance contracts. This amount is calculated based on the expected number of policies, the expected premiums, and any other factors that may affect the amount of premium income.
  
  How to use it: 
  In order to calculate the Estimated Premium Income, an insurance company must first determine the expected number of policies and the expected premiums for each policy. Once these values are determined, they can be used to calculate the Estimated Premium Income. This calculation can be done manually or with the help of a software program such as SAP.
  
  Tips & Tricks: 
  When calculating Estimated Premium Income, it is important to consider any additional factors that may affect the amount of premium income. These factors can include changes in market conditions, changes in policy terms, or changes in the number of policies. It is also important to keep track of any changes in these factors over time so that the Estimated Premium Income can be accurately calculated.
  
  Related Information: 
  Estimated Premium Income is closely related to other terms such as Gross Written Premiums and Net Written Premiums. Gross Written Premiums are the total amount of premiums collected by an insurance company from its reinsurance contracts, while Net Written Premiums are the amount of premiums collected after deducting any expenses associated with those contracts.