What is premium model in SAP FS-PMA - SAP Policy Management Add-On for Auto Insurance?

SAP Term: premium model

• Component: FS-PMA

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

• Description: Defines the premium rate to be paid when a specific premium level is reached.

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• Key Concepts: 
  The premium model in the FS-PMA SAP Policy Management Add-On for Auto Insurance is a tool that allows insurers to calculate and manage premiums for auto insurance policies. It provides a comprehensive set of features that enable insurers to accurately calculate premiums based on a variety of factors, such as the type of vehicle, the driver's age and driving record, and the coverage limits. The premium model also allows insurers to adjust premiums based on changes in risk factors over time.
  
  How to use it: 
  The premium model can be used to calculate premiums for new policies or to adjust existing policies. To calculate a new policy, insurers must enter the relevant information about the policyholder, such as their age, driving record, and coverage limits. The premium model will then generate a quote based on this information. To adjust an existing policy, insurers can enter new information about the policyholder or adjust the coverage limits. The premium model will then recalculate the premium accordingly.
  
  Tips & Tricks: 
  When using the premium model, it is important to ensure that all relevant information is entered accurately. This will ensure that the premiums are calculated correctly and that any adjustments are made accurately. Additionally, it is important to review the policy periodically to ensure that it is still up-to-date and that any changes in risk factors are taken into account.
  
  Related Information: 
  The FS-PMA SAP Policy Management Add-On for Auto Insurance also includes other features such as claims management and reporting tools. Additionally, insurers can use the add-on to integrate with other systems such as customer relationship management (CRM) systems and financial systems.