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Function documentationPerform Rating

 

The system rates the bonus-malus data in the contract based on the defined upgrade/downgrade rules. The result of the rating is saved in Bonus-Malus Management. The system stores the new premium rate and the new premium level in a new version of the contract in In-Force Business Management.

Integration

The rating rules (rating logic, premium model, and rating model) are stored in the product engine (for example, msg.PM).

Prerequisites

In addition to the rating dates regularly scheduled by in-force business on the first due date (Germany) or on the main due date (Austria), the following activities can also trigger a rating of the bonus-malus:

  • Assignment of available bonus-malus data

  • Vehicle change with copy of bonus/malus data from previous contract

  • Reinstatement of a contract, which requires a reclassification

  • Change of main due date, which requires a reclassification

  • Change of payment frequency, which requires a reclassification

  • Reversal of a contract (DE)

Activities

  1. The system determines the following values:

    • Validity date = effective date of the process

    • Rating model (internal) = rating model (internal) as defined in the contract or coverage

    • Rating model (external) = rating model (external) as defined in the contract or coverage

  2. The system determines the claim data. When the system rates data it reads external claim data reported by the previous insurer and internal claim data from an integrated claims system that is stored in the customer-specific claim container.

    For Germany:The system determines the time periods in which discount protection was active for the coverage.

  3. To calculate the new premium level and the premium rate, the system calls the product engine (for example, msg.PM).

    For Germany: If the bonus/malus was classified already in the same calendar year for another contract with an earlier classification date, the system synchronizes the bonus/malus rather than executing a classification. It copies the bonus/malus data of the already classified contract.

  4. The system saves the bonus-malus data in Bonus-Malus Management and saves the premium level calculated in the contract or coverage.

  5. The system uses this premium level and the premium model assigned to the contract or coverage to calculate the premium rate. It saves this rate in the contract or coverage.

  6. The system recalculates the premium for the contract.

Note Note

Notes about Synchronization

  • During classification, the Product Engine decides whether reclassification or synchronization is executed based on the copied data.

  • If a bonus/malus was classified for two or more contracts during a calendar year, the system executes classification only for the contract with the earliest classification date. The contracts with later classification dates copy the classification of the later contract. In the classification reason of the bonus/malus, the system defines whether a classification or a synchronization was executed.

  • During a specified period, a classification was executed first for a contract with a later due date, the system generates a PPO entry for the contract as soon as the system executes classification for a contract with an earlier due date.

  • If you use a classification model with different classification methods, then synchronization is required instead of classification to ensure that the classification of the bonus/malus remains synchronized. Therefore, this field is relevant for Germany only.

End of the note.