What is claim-free discount in SAP FS-PMA - SAP Policy Management Add-On for Auto Insurance?

SAP Term: claim-free discount

• Component: FS-PMA

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

• Description: 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: 
  Claim-free discount is a type of discount offered by auto insurance companies to customers who have not made any claims in the past. This discount is offered as an incentive to encourage customers to remain claim-free and to reward them for their loyalty.
  
  How to use it: 
  In the FS-PMA SAP Policy Management Add-On for Auto Insurance, claim-free discounts can be applied to policies by setting up a discount rule. This rule can be configured to apply the discount automatically when a customer has not made any claims in the past. The amount of the discount can also be adjusted according to the customer's claim history.
  
  Tips & Tricks: 
  When setting up a claim-free discount rule, it is important to ensure that the discount is applied correctly and that it is not applied too often or too infrequently. It is also important to ensure that the amount of the discount is appropriate for the customer's claim history.
  
  Related Information: 
  The FS-PMA SAP Policy Management Add-On for Auto Insurance also offers other types of discounts such as multi-policy discounts, loyalty discounts, and safe driver discounts. These discounts can be configured in a similar way as claim-free discounts.