What is 'reinsurance' in SAP FS-RI - Reinsurance?

reinsurance - Overview

• Component: FS-RI

• Component Name: Reinsurance

• Description: Form of insurance that insurance companies buy from other insurance companies for their own protection and to cover risks.

reinsurance - Details

• 
  Key Concepts: 
  Reinsurance is a risk management tool used by insurance companies to reduce their exposure to risk. It involves transferring a portion of the risk associated with an insurance policy to another insurer, known as the reinsurer. The reinsurer agrees to pay a portion of any claims that may arise from the policy. This helps to spread the risk and reduce the financial burden on the original insurer. 
  
  How to use it: 
  In SAP, reinsurance is managed using the FS-RI Reinsurance component. This component allows insurers to manage their reinsurance contracts, including setting up and maintaining reinsurance agreements, calculating premiums and claims, and managing payments. It also provides reporting capabilities for analyzing reinsurance data. 
  
  Tips & Tricks: 
  When setting up a reinsurance agreement in SAP, it is important to ensure that all relevant information is included in the contract. This includes details such as the type of coverage, the amount of coverage, and any exclusions or limitations. It is also important to ensure that all parties involved in the agreement are aware of their responsibilities and obligations. 
  
  Related Information: 
  For more information on reinsurance in SAP, please refer to the SAP Help Portal or contact your local SAP representative.