Defining Premium Splits

There are cases when an insurance product has multiple product items (coverages) and the insurer needs to establish a premium amount per each coverage. When the tariff type is set to Per Product, this is done by using the Premium Coverage Split functionality. Thus, the insurer can set the split (the percentage from the total premium amount) that the tariff formula will use in order to calculate the premium amount per each coverage included in the product.

Following that the Tariff Type of a product is set to Per Product, when the user goes to the Premium Amount tab on an insurance product and adds a new insurance product formula, all the coverages included in the product become available for percentage split fitting, inside the premium coverages split grid - with the default percentage being 0, for each coverage. Inside the grid, the user can manually enter numerical values for each percentage ( assigned to a certain coverage), so that the percentages add up to 100.

The following validations are in place:

  • The user can approve the product only after assigning the split percentages, so that they add up to 100.

  • If the user adds a new coverage to the product, the premium coverage split must be updated as well, otherwise the product cannot be approved.

  • The user cannot add the same coverage twice to the premium coverage split.

  • If the user deletes a coverage from a product, the coverage is automatically deleted from the premium coverage split as well.

Read below about the flows, libraries, and scripts used by this functionality.

User Journey

General description: This default form driven flow is based on the FTOS_IP_PremiumCoverageSplit entity. The flow is used for inserting or updating the total premium amount split - namely, the percentage for the premium amount per each coverage, to be used by the formula attached to the product.

View Default This view lists all the premium amount splits configured for an insurance product formula.

Business Workflow Configuration Actions

PremiumCoverageSplitValidations Action

To get the data for the validations, this action calls from FTOS_IP_InsuranceProduct_Operations server side script library the following functions:

  • getProductDetails(productId),

  • getProductFormula(productId),

  • getInsuranceProductItemDetails(productId),

  • getSplitDetails(coverageId) .

It throws an error if the sum of the percentages doesn't add up to 100 or if a coverage from the product is missing from the Premium Coverage Split list.

PremiumCoverageSplitValidations Action

To get the data for the validations, this action calls from FTOS_IP_InsuranceProduct_Operations server side script library the following functions:

  • getProductDetails(productId),

  • getProductFormula(productId),

  • getInsuranceProductItemDetails(productId),

  • getSplitDetails(coverageId) .

It throws an error if the sum of the percentages doesn't add up to 100 or if a coverage from the product is missing from the Premium Coverage Split list.

Server Side Library

FTOS_IP_InsuranceProduct_Operations

From this library, the following functions are used:

  • getSplitDetails,

  • getCoverageSplitDetails,

  • getProductDetails,

  • getInsuranceProductItemDetailsVersioned,

  • getInsuranceProductItemDetails,

  • getProductFormula.

For more details, see them described, inside the same library, on the Attach Business Formulas page.