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

SAP Term: internal and external bonus-malus level

• Component: FS-PMA

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

• Description: A differentiation is made between internal and external levels when working with a bonus-malus level: Internal refers to dealings with the customer External refers to dealings with an insurance association or subsequent insurers

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• Key Concepts: 
  Internal and external bonus-malus level is a feature of the FS-PMA SAP Policy Management Add-On for Auto Insurance. It is a system that allows insurers to set up different levels of bonus and malus (discounts and surcharges) for their customers based on their risk profile. The internal bonus-malus level is determined by the insurer, while the external bonus-malus level is determined by the customer's driving record. 
  
  How to use it: 
  The internal bonus-malus level is set up by the insurer and can be used to reward customers who have a good driving record or penalize those who have a bad one. The external bonus-malus level is determined by the customer's driving record and can be used to adjust the premium rate accordingly. The insurer can also set up different levels of discounts and surcharges based on the customer's risk profile. 
  
  Tips & Tricks: 
  When setting up the internal and external bonus-malus levels, it is important to consider the customer's risk profile as well as their driving record. This will help ensure that the insurer is providing fair and accurate premiums for their customers. Additionally, it is important to keep in mind that the external bonus-malus level may change over time, so it is important to regularly review and update this information. 
  
  Related Information: 
  The FS-PMA SAP Policy Management Add-On for Auto Insurance also includes features such as policy management, claims management, and reporting capabilities. Additionally, it provides insurers with tools to manage their customer base, including customer segmentation, loyalty programs, and more.