Business point of view:

Each insurance company has its own product policy (policy in the sense of a directive), which can be regarded as a marketing instrument closely connected to the premium policy.

The most important task of this product policy is product design, resulting in the creation of insurance products . The product policy also includes design of services and a labeling policy (product name as a means of setting it apart from competitors' products).

An insurance product, or a product, is oriented towards the requirements of potential insurance customers, and therefore describes the insurance coverage that is offered.

The content of a product is usually governed by statutory regulations and conditions. In this regard, the type and scope of insured risks, insured objects, insured persons, risk exclusions, minimum and maximum benefit limits, regional and time area of validity, and minimum and maximum terms have to be specified.

Technical point of view:

Claims Management uses policy products (policy in the sense of an insurance contract) to map the above requirements in the system.

In Customizing, you assign coverage types to a policy product (for more information see Assigning Coverage Types to Policy Products ). In doing so, you restrict the possible selection of coverage types that can be defined in a contract.

The policy product is also used in conjunction with the assigned incident typesto map the internal claim type . The internal claim type is the central object that is used to control claims in Claims Management.

IMG Activity

Meaning

Define Insurance Lines of Business

The insurance line of business is a criterion for classifying insurance coverage by risk types. A policy product corresponds to exactly one insurance line of business. The insurance line of business therefore defines which policy products are possible.

Define Incident Types

The incident type defines types of events that can trigger an insurance claim. In the policy product itself, you define only those incident types that are of importance for this policy product. The internal claim type is governed by the combination of incident type and policy product.

Define Coverage Types

The coverage type classifies a coverage. The coverage type determines which benefit types are valid, for example.

Configure Benefit Type Trees

(IMG path:  Claims Management Claim Process Control(Internal Claim Types) Benefit Types Configure Benefit Type Trees)

The benefit type trees group together the valid benefit types, and organize them hierarchically.

For more information, see Benefit Type Trees and Assignment of Benefit Type Trees .

FS-CD: Define Contract Account Creation Variant and Insurance Object for Policy

(IMG path:  Claims Management Claim Business Settings Payments/Subrogation/Recovery Special Settings for FS-CD FS-CD:Define Contract Acct Creation Variant and Insurance Object for Contract )

In order to be able to post payment transactions in Collections/Disbursements (FS-CD), you need to create insurance objects and the associated contract accounts in FS-CD if these do not already exist.You have the following setting options in this creation process:

Use Rule 1 when you are defining attributes for the creation variant. Otherwise, different rules specific to Collections and Disbursements apply when new insurance objects are created.