What is reinsured risk in SAP FS-RI - Reinsurance?

SAP Term: reinsured risk

• Component: FS-RI

• Component Name: Reinsurance

• Description: A reinsured risk contains information about the transferred liability of policies and about the distribution of this liability to retention and reinsurance. Reinsured risks are distinguished by their category.

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• Key Concepts: 
  Reinsured risk is a term used in the SAP FS-RI Reinsurance component. It refers to the risk that an insurer takes on when it agrees to cover a portion of the losses of another insurer. This type of agreement is known as reinsurance and is used to spread the risk of large losses among multiple insurers. 
  
  How to use it: 
  The SAP FS-RI Reinsurance component allows insurers to manage their reinsurance agreements and associated risks. It provides tools for calculating premiums, tracking claims, and managing reinsurance contracts. It also provides reporting capabilities to help insurers analyze their reinsurance agreements and identify potential areas of improvement. 
  
  Tips & Tricks: 
  When setting up a reinsurance agreement, it is important to consider the potential risks associated with the agreement. This includes understanding the terms of the agreement, such as the amount of coverage provided and any exclusions or limitations. It is also important to consider the financial implications of taking on additional risk, such as increased premiums or reduced profits. 
  
  Related Information: 
  For more information about reinsurance and how it works, please refer to the SAP Help Portal or contact your local SAP representative. Additionally, there are many online resources available that provide detailed information about reinsurance and its associated risks.