What is 'reference class of business' in SAP FS-RI - Reinsurance?

reference class of business - Overview

• Component: FS-RI

• Component Name: Reinsurance

• Description: An existing class of business that can be used as a template for, or as a comparison object with, other classes of business.

reference class of business - Details

• 
  Key Concepts: 
  Reference class of business is a term used in the SAP FS-RI Reinsurance component. It is a way of grouping similar types of business together for the purpose of reinsurance calculations. For example, a reference class of business could be “automobile insurance” or “life insurance”. 
  
  How to use it: 
  In the SAP FS-RI Reinsurance component, reference classes of business are used to define the reinsurance contracts and to calculate the reinsurance premiums. The reference classes of business are used to determine which contracts should be included in the reinsurance calculations and how much premium should be charged for each contract. 
  
  Tips & Tricks: 
  When setting up reference classes of business in the SAP FS-RI Reinsurance component, it is important to ensure that all relevant contracts are included in the calculations. This will ensure that the correct premiums are calculated and that all contracts are properly accounted for. 
  
  Related Information: 
  For more information on reference classes of business in the SAP FS-RI Reinsurance component, please refer to the SAP Help documentation.