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

SAP Term: tariff premium

• Component: FS-PM

• Component Name: Policy Management

• Description: Standardized yearly premium included in the contract, which does not consider specifics of the individual contracts such as, costs, discounts, surcharges, and taxes. It already contains standardized costs.

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• Key Concepts: 
  Tariff Premium is a feature of the FS-PM Policy Management component of SAP. It allows users to define and manage premium rates for different types of insurance policies. The premium rate is calculated based on the policyholder's risk profile and other factors such as age, gender, and location. 
  
  How to use it: 
  To use Tariff Premium, users must first define the premium rate for each type of policy. This can be done by entering the rate into the system or by importing a file containing the rates. Once the rates are defined, users can then assign them to specific policies. The system will then calculate the premium rate for each policy based on the policyholder's risk profile and other factors. 
  
  Tips & Tricks: 
  When defining premium rates, it is important to consider the policyholder's risk profile and other factors such as age, gender, and location. This will ensure that the correct rate is applied to each policy. Additionally, it is important to regularly review and update the premium rates to ensure they remain accurate and up-to-date. 
  
  Related Information: 
  For more information about Tariff Premium, please refer to the SAP Help Portal or contact your local SAP representative. Additionally, there are several online resources available that provide detailed information about this feature of FS-PM Policy Management.