What is standard premium in SAP FS-PM - Policy Management?

SAP Term: standard premium

• Component: FS-PM

• Component Name: Policy Management

• Description: Premium for an insurance contract that is derived from a defined reference value.

Smart SAP Assistant

• Key Concepts: 
  Standard Premium is a feature of the FS-PM Policy Management component of SAP. It allows users to define a standard premium rate for a policy, which can then be used to calculate the premium for any policyholder. This rate can be adjusted based on the individual policyholder's risk profile. 
  
  How to use it: 
  Standard Premium can be used to quickly and accurately calculate premiums for policyholders. To use it, users must first define a standard premium rate for a policy. This rate can then be adjusted based on the individual policyholder's risk profile. Once the rate has been set, the system will automatically calculate the premium for each policyholder based on their risk profile. 
  
  Tips & Tricks: 
  When setting up Standard Premium, it is important to ensure that the rate is set correctly. If the rate is too low, it could result in losses for the insurer; if it is too high, it could result in customers being overcharged. It is also important to ensure that the risk profiles of policyholders are accurately reflected in the premium calculation. 
  
  Related Information: 
  For more information on Standard Premium and other features of FS-PM Policy Management, please refer to SAP's official documentation or contact your local SAP representative.