What is layer in SAP FS-RI - Reinsurance?

SAP Term: layer

• Component: FS-RI

• Component Name: Reinsurance

• Description: Each layer has its own treaty, ranging from working cover high probability of loss occurring, low extent of losses to the highest area of catastrophe low probability of loss occurring, high extent of losses. The concept of coverage being provided in layers plays a big role in excess of loss reinsurance. A layer is part of excess of loss or stop loss coverage. If this type of reinsurance coverage comprises a larger layer, this layer is split into several parts that make up a program. As a rule, a separate treaty is created for each layer so that the reinsurer can choose whether to participate in a cedent's entire program or only in individual, selected layers.

Smart SAP Assistant

• Key Concepts: 
  The term “layer” in the context of SAP FS-RI Reinsurance refers to a set of reinsurance contracts that are grouped together. A layer is typically used to define the amount of risk that a reinsurer is willing to take on for a particular type of insurance policy. 
  
  How to use it: 
  In SAP FS-RI Reinsurance, layers are used to define the amount of risk that a reinsurer is willing to take on for a particular type of insurance policy. The layer can be set up with different parameters such as the amount of coverage, the type of coverage, and the duration of the coverage. The layer can also be used to define the terms and conditions of the reinsurance contract. 
  
  Tips & Tricks: 
  When setting up layers in SAP FS-RI Reinsurance, it is important to consider the different parameters that will be used to define the layer. This includes the amount of coverage, the type of coverage, and the duration of the coverage. It is also important to consider any additional terms and conditions that may be included in the reinsurance contract. 
  
  Related Information: 
  For more information about layers in SAP FS-RI Reinsurance, please refer to SAP’s official documentation on layers in FS-RI Reinsurance. Additionally, there are many online resources available that provide detailed information about setting up layers in SAP FS-RI Reinsurance.