What is calculation based on premium in SAP FS-PM - Policy Management?

SAP Term: calculation based on premium

• Component: FS-PM

• Component Name: Policy Management

• Description: Calculation of the sum insured, based on the premium specified by the policyholder.

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• Key Concepts: 
  Calculation based on premium is a feature of the FS-PM Policy Management component of SAP. This feature allows users to calculate premiums for insurance policies based on the policyholder's risk profile. The calculation is based on the policyholder's age, gender, occupation, and other factors. 
  
  How to use it: 
  To use this feature, users must first enter the policyholder's information into the system. This includes their age, gender, occupation, and other relevant information. Once this information is entered, the system will calculate the premium for the policy based on the risk profile of the policyholder. 
  
  Tips & Tricks: 
  When entering the policyholder's information into the system, it is important to make sure that all of the information is accurate and up-to-date. This will ensure that the premium calculation is accurate and that the policyholder receives the correct premium amount. 
  
  Related Information: 
  The calculation based on premium feature of FS-PM Policy Management can be used in conjunction with other features such as risk assessment and claims management. This allows users to manage their policies more effectively and efficiently.