M11708 – Novulo Terugvalberekening bij schade

[Q&A] Components, Datasets and Plug-ins
1

M11708 – Novulo Terugvalberekening bij schade

Component Documentation

1. Introduction

Purpose

This component enables insurers, service providers, advisors, and other policy administrators to calculate the financial impact of one or more claims on a policyholder’s Bonus-Malus (BM) position.

The functionality helps determine whether it is financially beneficial to submit a claim to the insurer or pay the claim amount directly.

The component supports both:

  • Claim-based calculations
  • Hypothetical calculations

All calculation results are saved for future reference, reporting, integrations, and API consumption.

2. Business Background

A reimbursed claim may result in a reduction of the Bonus-Malus level of a policy. This reduction can lead to lower premium discounts and therefore higher future premiums. These financial consequences can be spread over multiple insurance years.

The component calculates:

  • Current Bonus-Malus position
  • Expected Bonus-Malus position
  • New Bonus-Malus position after claim registration
  • Total financial impact during recovery
  • Break-even point compared to claim amount

The result supports advisory and claims handling processes.

Advisory Outcome
Scenario
Advice
Consequence > Claim amount
Consider paying for the damage yourself
Consequence < Claim amount
Claim submission may be favourable

The advisory outcome must always be assessed in the business context of the insurer.

3. Functional Overview

Core Capabilities

The component provides the following functionality:

  • Bonus-Malus consequence calculation
    Calculate the premium impact resulting from one or more claims.
  • Hypothetical claim calculation
    Initiate calculations directly from a policy without requiring an existing claim registration.
  • Break-even calculation
    Determine whether the claim amount exceeds the future premium increase caused by Bonus- Malus regression.
  • Product-specific Bonus-Malus calculation
    Use the BM ladder and configuration of the linked insurance product rather than generic service-type configuration.
  • Warning notifications
     Inform users when:

· Bonus-Malus protection is active

· Open claims exist that may influence future calculations

4. Architecture

Component Dependencies

M11708 – Novulo Terugvalberekening bij schade

Responsible for:

  • Input collection
  • Calculation orchestration
  • Result registration
  • User interaction

M8760 – Novulo Indexatie

Responsible for:

  • Determining BM level transitions
  • Applying Bonus-Malus ladder movements
  • Index calculation support

5. Supported Entry Points

5.1 Claim-Based Calculation

Use case:

  • Existing claim registered in the system
  • Claim amount known
  • Existing claim context available

5.2 Policy-Based Calculation

Use case:

  • Customer requests advice
  • No claim yet registered
  • Hypothetical damage assessment

6. Warning Messages

Bonus-Malus Protection

When an active Bonus-Malus protection applies:

Active bonus-malus protection coverage. No bonus-malus consequence. In this situation:

  • BM level remains unchanged
  • Financial consequence equals zero

Open Claims

When unresolved claims exist:

There are other open claims for this policy. The settlement of those open claims may change the shown Bonus-Malus consequence.

These warnings are informational and do not block calculation execution.

7. Configuration

To enable Bonus-Malus calculations:

  • Product Configuration
    Enable BM consequence calculation on the product.
  • Bonus-Malus Protection
    Configure an expression determining whether BM protection is active.
  • Discount Configuration
    Mark applicable discounts as Bonus-Malus discounts.
  • Index Configuration
    Mark applicable index templates as Bonus-Malus templates.
  • REST Integration
    Expose the calculation process when external consumers require access.
2

Hi Remy,
Could you please elaborate on the configuration part? It is not clear what exactly should be configured for most of our configurators. Thank you very much in advance!

3

Hi Tom,

Here’s a more detailed overview of the required configuration, building upon the list Remy already provided.

The REST Integration item has been intentionally left out because it only concerns the configuration of a REST Data endpoint. This is not a mandatory prerequisite for using the Bonus-Malus regression calculation.

  1. Product Configuration
    At product level, the “BM (Regression) Calculation” checkbox must be enabled (Product → Settings). Enabling this option activates, among other things, the “Calculate BM Regression for Claim” tile at system version level.

  2. Bonus-Malus Protection
    If the product-level setting described above is enabled, an optional Novulo expression can be configured for each proposition of the product (Proposition → Settings). This expression is evaluated in the context of a system version. When it returns true during the creation of a regression calculation, the label “Has Active Bonus-Malus Protection” is displayed within the regression calculation screen.

  3. Discount Configuration
    For each discount with Determination Type = “Values”, the checkbox “For Regression Calculation” can be enabled to indicate that the discount should be used during the regression calculation. In practice, this will typically be the Bonus-Malus discount configured on the proposition.

    Once this checkbox is enabled, the fields “Regression Value Determination” and “Actual Value Determination” become visible. These fields are automatically populated with the recommended best-practice expressions.

  4. Index Configuration
    The final configuration step is to enable the “For Regression Calculation” checkbox on the index table that defines the Bonus-Malus step regression.

Once these configurations are in place, the regression calculation can be used.