What is dividend in SAP FS-PM - Policy Management?

SAP Term: dividend

• Component: FS-PM

• Component Name: Policy Management

• Description: The amount of money that an insurance company amasses from the surplus premiums of a life insurance policy. The insurance company credits the dividend amount to the insurance contract on an annual basis.

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• Key Concepts: 
  Dividend is a payment made by a company to its shareholders out of its profits or reserves. In SAP FS-PM Policy Management, dividends are calculated based on the policyholder's account balance and the dividend rate set by the insurer. The dividend rate is determined by the insurer and can be changed at any time. 
  
  How to use it: 
  In SAP FS-PM Policy Management, dividends are calculated automatically when a policyholder's account balance is updated. The dividend rate is set by the insurer and can be changed at any time. The dividend amount is then credited to the policyholder's account. 
  
  Tips & Tricks: 
  When setting the dividend rate, it is important to consider the current market conditions and the insurer's financial position. It is also important to ensure that the dividend rate is competitive with other insurers in order to attract new customers. 
  
  Related Information: 
  SAP FS-PM Policy Management also allows insurers to set up bonus payments for policyholders who have been with the company for a certain period of time. Bonus payments are calculated based on the policyholder's account balance and the bonus rate set by the insurer.