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

SAP Term: discount base date

• Component: FS-PMA

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

• Description: A parameter used to determine the premium level for the bonus-malus calculation. The discount base date is calculated by deducting the number of claim-free years or months from the effective date of the rating.

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• Key Concepts: 
  Discount base date is a feature of the FS-PMA SAP Policy Management Add-On for Auto Insurance. It is used to determine the discount rate that will be applied to a policyholder's premium. The discount base date is the date on which the policyholder's premium is calculated and the discount rate is applied. 
  
  How to use it: 
  The discount base date is set when a policyholder first purchases their policy. It can be changed at any time, but it must be done before the policy renewal date. The discount rate will be applied to the premium based on the discount base date. 
  
  Tips & Tricks: 
  It is important to keep track of the discount base date for each policyholder, as it can affect their premium amount. If the discount base date is changed after the policy renewal date, it may result in an incorrect premium amount being charged to the policyholder. 
  
  Related Information: 
  The FS-PMA SAP Policy Management Add-On for Auto Insurance also includes features such as policy renewal, payment processing, and claims management. These features are all designed to help insurers manage their policies more efficiently and effectively.