What is soft rating characteristics in SAP FS-PM - Policy Management?

SAP Term: soft rating characteristics

• Component: FS-PM

• Component Name: Policy Management

• Description: Since the deregulation of the insurance market, the insurance companies are free to assign discounts and surcharges for various criteria, under certain conditions. The most frequent discounts are: Single driver discount, first owner discount, vehicle age discount, garage discount, lady discount, partner discount, infrequent driver discount. A surcharge is often levied for frequent drivers.

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• Key Concepts: 
  Soft rating characteristics are used in the FS-PM Policy Management component of SAP to define the criteria for a policy. They are used to determine the risk level of a policy and can be used to set different levels of risk for different policies. Soft rating characteristics are based on qualitative criteria such as customer behavior, industry trends, and other factors. 
  
  How to use it: 
  Soft rating characteristics can be used to set different levels of risk for different policies. To do this, the user must first define the criteria for each policy. This can be done by selecting the appropriate soft rating characteristics from a list of available options. Once the criteria have been defined, the user can then assign a risk level to each policy based on the criteria selected. 
  
  Tips & Tricks: 
  When defining soft rating characteristics, it is important to consider all relevant factors that could affect the risk level of a policy. This includes customer behavior, industry trends, and other factors that could influence the risk level of a policy. Additionally, it is important to ensure that all criteria are clearly defined so that they can be easily understood by users. 
  
  Related Information: 
  For more information on soft rating characteristics and how they are used in FS-PM Policy Management, please refer to SAP's official documentation on the topic. Additionally, there are many online resources available that provide further information on this topic.