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Manage Multi-Level Coverages in Policy Administration
Maintain multi-level coverage hierarchies and preserve parent-child coverage relationships across quoting and policy lifecycle operations.
Required Editions
| Available in: Lightning Experience |
| Available in: Enterprise, Unlimited, and Developer Editions of Digital Insurance Platform |
Coverage hierarchies can maintain independent premiums, taxes, clauses, and exclusions across parent and child coverages.
Multi-level coverages support both single-root and multi-root policies. Parent-child coverage relationships configured during product design are preserved across quoting, rating, and policy lifecycle operations.
Business Scenario
An insurer offers a Commercial Property Insurance product for commercial office locations. The insurer wants to model property-level protections with parent-child coverage relationships while maintaining financial and policy details at each hierarchy level.
For example, a Commercial Property policy can include:
- a Head Office insured asset,
- a Property Damage Coverage,
- and Fire Damage Coverage and Earthquake Damage Coverage products.
This hierarchy is preserved throughout quoting and policy lifecycle operations.
How Multi-Level Coverages Work
Multi-level coverages maintain parent-child coverage relationships configured during product modeling.
In this example:
- Head Office represents the insured asset.
- Property Damage Coverage represents the parent coverage.
- Fire Damage Coverage and Earthquake Damage Coverage represent child coverages.
Each child coverage can maintain independent premiums, taxes, clauses, exclusions, and pricing behavior.
When users add the product to a quote, the hierarchy appears in the quote structure exactly as configured in the product model.
Example: Coverage Financial Values
A Property Damage Coverage can contain multiple child coverages with independent financial values and coverage attributes.
| Coverage | standard premium | standard tax amount |
|---|---|---|
| Property Damage Coverage | USD 1,100 | USD 54 |
| Earthquake Damage Coverage | USD 150 | USD 37 |
| Fire Damage Coverage | USD 75 | USD 17 |
In this example:
- Premiums and taxes are maintained independently across parent and child coverages.
- Premium aggregation across coverage hierarchies can be configured through pricing procedures.
- Taxes and fees can roll up from child coverages into parent coverage totals.
- Child coverages can maintain independent attributes and extended attributes such as limits, deductibles, and copay values.
- Financial values remain associated with their respective coverage hierarchy levels throughout quoting and policy lifecycle operations.
Configure Multi-Level Coverages
Use Product Catalog Management capabilities to configure parent-child coverage relationships within insurance product hierarchies. Configure child coverages under parent coverages during product design to preserve coverage hierarchies across quoting, rating, and policy lifecycle operations.
For detailed product modeling steps, see Create a Product Catalog for Digital Insurance.
Considerations
- Each child coverage can reference only one parent coverage.
- Multi-parent coverage relationships aren't supported.
- Coverage hierarchies can't contain circular parent-child relationships.
- Limits, benefits, attributes, and extended attributes don't automatically aggregate across parent and child coverages.
- Implement custom aggregation logic separately if required.
- Multi-level coverage hierarchies support a maximum depth of four coverage levels from the root product.
Key Capabilities
Multi-level coverages support these capabilities:
- Maintain coverage hierarchies through parent-child coverage relationships.
- Preserve coverage hierarchies across quoting, policy issuance, endorsements, renewals, and bulk renewals.
- Maintain premiums, taxes, clauses, and exclusions at different coverage hierarchy levels.
- Support premium proration calculations for parent and child coverages.
- Roll up taxes and fees from child coverages into parent coverage totals.
- Maintain coverage-level financial details during policy transactions.
- Support endorsements and out-of-sequence endorsements for child coverages.
- Support Policy APIs and invocable actions for multi-level coverages.
- Support coverage hierarchy depth of up to four levels.
