What is sum insured in SAP FS-RI - Reinsurance?

SAP Term: sum insured

• Component: FS-RI

• Component Name: Reinsurance

• Description: The sum insured is the reinsured risk amount agreed between the policyholder and the primary insurer and specified in the policy.

Smart SAP Assistant

• Key Concepts: 
  Sum insured is a term used in reinsurance to refer to the maximum amount of money that an insurer will pay out for a particular policy. It is the maximum amount of money that an insurer will pay out for a particular policy, regardless of the actual amount of the claim. 
  
  How to use it: 
  In SAP FS-RI Reinsurance, sum insured is used to define the maximum amount of money that an insurer will pay out for a particular policy. This amount is set by the insurer and can be adjusted as needed. The sum insured is used to calculate the premium for the policy and is also used to determine the amount of coverage provided by the policy. 
  
  Tips & Tricks: 
  When setting up a reinsurance policy in SAP FS-RI Reinsurance, it is important to ensure that the sum insured is set correctly. This will ensure that the policy provides adequate coverage and that the premium is calculated accurately. 
  
  Related Information: 
  The sum insured is just one of many terms used in reinsurance. Other terms include deductible, coinsurance, and reinsurer's share. Understanding these terms and how they work together can help you better understand how reinsurance works and how to set up a reinsurance policy in SAP FS-RI Reinsurance.