What is bonus-malus in SAP FS-PMA - SAP Policy Management Add-On for Auto Insurance?

SAP Term: bonus-malus

• Component: FS-PMA

• Component Name: SAP Policy Management Add-On for Auto Insurance

• Description: A representation of the levels of the claim-free discount: a discount on the basic premium is awarded to the customer based on the number of claim-free years for a policy.

Smart SAP Assistant

• Key Concepts: 
  Bonus-malus is a system used in auto insurance to reward or penalize policyholders based on their driving record. It is a type of risk-based pricing, where policyholders with a good driving record are rewarded with lower premiums, while those with a poor driving record are penalized with higher premiums.
  
  How to use it: 
  The bonus-malus system is used in the FS-PMA SAP Policy Management Add-On for Auto Insurance to calculate premiums for policyholders. The system takes into account the policyholder's driving record, as well as other factors such as age, gender, and type of vehicle. The system then calculates the premium based on these factors and assigns a bonus or malus to the policyholder accordingly.
  
  Tips & Tricks: 
  It is important to keep track of your driving record in order to take advantage of the bonus-malus system. Make sure to drive safely and obey all traffic laws in order to get the best possible rate on your auto insurance premiums.
  
  Related Information: 
  The bonus-malus system is just one of many risk-based pricing systems used by insurers. Other systems include age-based pricing, gender-based pricing, and vehicle type-based pricing. All of these systems are used to calculate premiums for policyholders and can have a significant impact on the cost of auto insurance.