What is exemption amount for leading insurer commission in SAP FS-PM - Policy Management?

SAP Term: exemption amount for leading insurer commission

• Component: FS-PM

• Component Name: Policy Management

• Description: Premium amount in coinsurance, for which no leading insurer commission has to be remitted.

Smart SAP Assistant

• Key Concepts: 
  Exemption amount for leading insurer commission is a feature of the SAP FS-PM Policy Management component. This feature allows insurers to set an exemption amount for the commission they pay to their leading insurer. This exemption amount is used to reduce the total commission paid to the leading insurer, thus reducing the overall cost of the policy. 
  
  How to use it: 
  In order to use this feature, insurers must first set up an exemption amount for their leading insurer. This can be done in the FS-PM Policy Management component by navigating to the “Commission” tab and selecting “Exemption Amount” from the drop-down menu. Once the exemption amount has been set, it will be applied to all policies that are issued by the leading insurer. 
  
  Tips & Tricks: 
  When setting up an exemption amount for a leading insurer, it is important to consider the impact that this will have on the overall cost of the policy. Insurers should also consider any other factors that may affect the total cost of the policy, such as taxes or fees. 
  
  Related Information: 
  For more information about setting up an exemption amount for a leading insurer, please refer to SAP’s documentation on FS-PM Policy Management. Additionally, insurers may want to consult with their insurance provider or a financial advisor in order to determine the best way to set up an exemption amount for their leading insurer.