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SAP for Insurance

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The insurance industry is reaching a tipping point. With new technologies like connected cars entering the scene and a more informed consumer marketplace, Risk and Finance professionals in the insurance sector must break down departmental silos and work together to create a more integrated business model that drives new revenue streams.


Industry thought leaders, along with SAP’s own Pat Saporito, recently discussed how to accomplish this in the SAP Radio Show broadcast, Risk and Finance: 1 plus 1 equals 3. The broadcast examined findings from a recent SAP and IDC white paper stating that an integrated risk-finance profile can enable faster response times to evolving mandates and facilitate improved financial forecasting, enhance timelines, accuracy and completeness of information.


How Technology Has Changed the Game

Technology is fundamentally changing the nature of the insurance industry. The spread of digitization and consumer knowledge has changed the way companies must glean knowledge and assess risk.


Daniel Haudenschild, Partner – Financial Service Advisory at Ernst & Young, related a few examples that illustrate this new challenge: “First look at self-driving cars. How can a company insure a fleet of cars where the car is almost incapable of having an accident? Or a family that enjoys taking skiing trips wants to insure their equipment and their family members, creating the need for a policy that is a mixture of property and casualty. Scenarios like these are starting to pull the rug out from under classic insurers, struggling to keep up with these new demands.”


To poise themselves for success despite these rapidly changing external factors, insurers must get ahead of the change to recognize looming risk, performance and management issues before they happen and set up a plan of attack.


According to Pat Saporito, Senior Director in the Global Center of Excellence for Analytics at SAP, insurers are up against a “triple tsunami” that includes Big Data, Internet of Things and Industry Regulations. “If risk and finance professionals can establish a single data foundation, they will be able to generate consistent responses that will help the company minimize operational silos that impact customer satisfaction and new opportunities for revenue,” she said.


Technology has created an opportunity for companies to be agile despite new industry challenges. Insurers must see what’s happening both inside and outside their organizations and evaluate the impact it will have on their existing business models based on a synthesized set of data.


The Influence of IFRS

The International Financial Reporting Standards (IFRS) are becoming the global language for finance, but insurers have been slow to get on board due to the complex requirements and lack of finalized standards. After nearly 10 years of debate, the industry is nearing a consistent and transparent standard for insurance companies to report profits.


During the broadcast Francisco Nagari, who is the global IFRS insurance lead partner at Deloitte, stressed that the shift to a new and consistent reporting model is fundamental for the insurance industry as a whole. “Once investors will be able to compare and evaluate the cost of raising capital, it will become more affordable and straightforward for insurers,” said Nagari.


As insurance companies look to re-write their traditional models and shift into new market verticals, they must continue to operate as well-oiled business machines.


“Regulations will always shift, and insurers must deal with this, but there’s a need to get much more efficient at it,” said Haudenschild. “Insurers can no longer afford to keep investing in new technology solutions that help them meet compliance; they must be able to achieve compliance at the press of a button.”


Integration: The Path Forward

The wave of industry reporting standards from the IFRS are coming at just the right time.


“Everyone talks about the need to see what’s coming in the future, but it’s very hard to do this effectively with such a variation of data to analyze,” said Nagari. “Insurance accounting is very complicated, and the language must be kept simple or companies will not be able to see the change that’s happening within their organization.”


With true transformation previously hindered by the absence of a consistent regulatory framework on a global scale, insurers will now be set up for ongoing success in the very near future.


“Now is the time for insurers to integrate their risk and finance foundations so they have an agile technology platform that meet external indicators,” concluded Pat Saporito. “With the new IFRS formats and models, insurers will be able to fulfil any reporting requirements fairly seamlessly, as long as they have already addressed existing data governance and data silo issues.”


SAP is here to help insurers and financial executives with this transition. For more information visit www.sap.com/insurance.

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(By Charles Juniper, Reprinted from the Digitalist Magazine)


As insurers increasingly focus on delivering a strong, consistent customer experience as the primary goal of core operations modernization, identifying the most appropriate systems architecture to enable this becomes a crucial question. Latest research from Ovum conducted on behalf of SAP and based on interviews with over 500 senior decision makers from the insurance industry examines this issue.


The integrated channel platform model emerges as the preferred solution for many insurers

The study reveals that 42% of insurers are attempting to implement a core processing architecture that integrates communications channels and core processing within a single platform. This ‘integrated channel platform’ model aligns well with the strategic goal of enhancing the customer experience and was strongly favoured among European and Central and Latin American insurers.

While a model that integrates digital channels, core processing and other functionality, such as customer analytics within a single platform, was the preferred choice of 29% of insurers highlighting a general trend towards more integration, it does show that carriers lack complete confidence in the maturity of this type of offerings currently.


Insurers in emerging markets are using cloud to rapidly implement core operations architectures

The study also revealed that for almost half of insurers it will take at least two years before they can support the business with the most appropriate core processing model.  This leaves many insurers at a significant competitive disadvantage and exposed to the threat from either carriers that are further advanced in their core operations transformation or from new entrants from outside the insurance industry, such as Google.

SaaS- based core operations platforms running on cloud infrastructure provide a means to move quickly to an integrated channel platform while minimizing initial capital investment. Insurers have been strong adopters of SaaS and cloud technology across the wider organization, but the study shows that only 6% of respondents are currently using the technology specifically in support of core operations. However, insurers in the emerging markets are being far more aggressive in the introduction of cloud to support core operations, with 24% and 19% of respondents in Central and Latin America and Asia-Pacific respectively moving toward the majority of core processing being performed on cloud within the next 24 months. This compares with only 10% of North American and 12% of European respondents.


Charles Juniper, Principal Analyst OVUM, shares his insights on digital transformation in the insurance sector in this video


Discover the related Ovum report Core Operations Modernization in the Global Insurance Industry with the accompanying Infographic

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Ageas, an international insurance group headquartered in Brussels, is making history in its industry. Last week SAP issued a press release and I wanted to highlight the great news.


The company recently teamed up with SAP to adopt the industry’s first end-to-end insurance software in the cloud deployed by a single software vendor. This comprehensive insurance-in-a-box offering will allow Ageas to streamline its insurance processes from sales and operations to finance.


“The difficulty in building IT for an insurance company is that you need many components,” says Hans Van Wuijckhuijse, regional director, Business Development Asia, Ageas. “How nice would it be to say ‘here is a box and this is the box that contains everything you will need from day one as an insurance company? Plug it into the power outlet and it starts working for you.’” The ability to achieve this is the main reason that Van Wuijckhuijse turned to SAP, as this offering supports the full insurance lifecycle. It includes back- and front-end processes, with an all-inclusive set of integrated SAP solutions that help insurance companies operate their business in the cloud.


The global insurance group specializes in building insurance partnerships with banks and retailers, and its next target is Southeast Asia. “Ageas will launch the suite at its new joint venture in the Philippines and potentially use the new solution portfolio for other green-field operations. With this comprehensive set of next-generation enterprise software from SAP, Ageas gets to focus on its customers and the core of its business, instead of being in the business of also running a midscale technology services firm internally,” says Van Wuijckhuijse.



The hosted, end-to-end enterprise insurance software is built on SAP S/4HANA, which delivers simplified customer engagement tools through the SAP HANA platform. It includes over 30 SAP solutions and omnichannel functionality powered by software from hybris, an SAP company. Core insurance solutions support policy administration, quotation, underwriting, claims, commissions, collections and disbursements, as well as finance, procurement, HR and enterprise analytics. These are all deployed on SAP HANA Enterprise Cloud, a fully managed and secure cloud that offers flexibility and quick time to market.


“It’s the regular, complete suite that you would need to build a company,” say says Van Wuijckhuijse. “The big difference is that it’s all SAP.”  The software will enable the company to have the full functionality it needs on day one for its new markets. “Normally we are looking at a nine-month period to set up a company from scratch to sell the first policy. Now we expect to reduce that time to 6 months and to have a far more complete IT environment.” And the cost savings? Van Wuijckhuijse expects it to be between 20-40% within the first five years.


Beyond the robust platform functionality, SAP will be providing a simplified end-to-end engagement model, from subscription to services and from enablement to support. It will enable Ageas to streamline further its IT management and support, reduce total cost of ownership, accelerate its time to market, strengthen operational agility across lines of business and achieve transparency and compliance.


To learn more about this end-to-end solution, please read the announcement. Or watch an interview with Van Wuijckhuijse here. For more information on about SAP technology and insurance offerings, please visit sap.com/insurance.


November 19, 2015 at 10 AM EST   Register

For many insurers, transforming their core operations is critical if they are to survive, let alone thrive, in an insurance market undergoing rapid change. Ovum’s latest research finds that for nearly 40% of insurers, this transformation will take at least two years, leaving them exposed and at a competitive disadvantage to more agile competitors, start-up and new entrants.


Join Charles Juniper and SAP as they discuss the results of Ovum’s in-depth study of the current state of core transformation within the global insurance industry. The study, with input from over 500 decision makers from the sector, examines key drivers, priorities and strategies for core transformation, together with Ovum’s recommendations. 


November 19, 2015 at 3pm GMT (10am EST) Register here
Time: 3pm London | 4pm Berlin | 10am New York | 4pm Dubai | 9am Chicago | 7am Los Angeles | 1pm Sao Paulo | 5pm Johannesburg | 11pm Singapore | 7am San Francisco | 6pm Moscow | 5pm Helsinki | 8.30pm Mumbai | 12am Tokyo | 2am Sydney.


If you are unable to join the live webinar due to the time zone you are based in, please still sign up as we will send you a link to view the slides and the full recording after the live broadcast


Highlights include:

  • Most insurers continue to run fragmented core operation environments with 41% having more than 11 core operations platforms.
  • Enhancing the customer experience is the most important goal of core transformation
  • 42% of carriers see an "integrated channel" model as the optimal architecture to support their growth strategy
  • But 46% of carriers need at least two years to implement this model
  • The proportion of carriers in emerging markets using cloud to support rapid transformation is twice that of their North American or European counterparts
  • Followed by live webinar Q&A

Charles Juniper
Principal Analyst, Financial Services Technology


Marc Kamphausen
Global Head of Core Insurance Solutions,


Date: Monday, November 2, 2015

Time: 10:00 A.M. Eastern Time              
Duration: 1 hour

Sponsored by SAP Register Here



CFO Research conducted a survey of 62 CFOs and senior finance executives at large financial services firms in Europe, the United States, Canada, the Asia-Pacific region, and Latin America. The research sought to better understand how finance leaders aspire to support business decision makers in the pursuit of value creation—and how leading-edge financial planning and business analysis capabilities factor into those aspirations.

The research, sponsored by SAP, found that financial services CFO's feel pressure building on the finance function to contribute more to business success. And it doesn’t appear likely that making incremental improvements to traditional financial planning and analysis (FP&A) practices will be enough to meet the new demands on finance.

Join this Webcast to view detailed research findings and hear an expert discussion of the following four key conclusions that the research points to:

  • Agility is an increasingly important source of competitive advantage, and management’s appetite for actionable, real-time analysis is growing;
  • IT systems for FP&A are falling short of intensifying demands for real-time, ad-hoc analysis;
  • Tight integration between financial planning systems and core enterprise resource planning (ERP) supports more effective decision making; and
  • Pressure on finance teams to improve their contributions to high-value planning and analysis is increasing.


About the Speakers:

  • Hugh Anderson, Senior Principal, Insurance Industry Value Engineering Practice, SAP

Hugh Anderson is a senior principal with SAP’s insurance industry value engineering practice. In this position he is responsible for SAP’s value proposition in the insurance market as a technology partner, business innovator, and trusted thought leader. Prior to joining SAP in 2006, Hugh held a variety of IT and business leadership positions at The Hartford Financial Services Group, and served as Director of Carrier Interface and Integration for Vertafore’s AMS Services business.

  • Sean Berrington, Head of Finance, Personal and Business Banking, Information Technology, Standard Bank Group

Through his training as a Chartered Accountant and his specialization in IT, Sean has gained wide exposure to various multinational organizations and their IT operations. He is among a select few globally who can say they have been part of a leadership team of a large core banking replacement program.
Sean joined Standard Bank in 2011 as the Head of Finance for its Core Banking program. In this role, he was able to apply his skills as a Chartered Accountant while leveraging his deep IT knowledge. In 2014, he took on his current role, which encompasses IT for Standard Bank's Personal and Business Banking portfolio.
Before he joined Standard Bank, Sean spent ten years with PwC, where he devoted more than eight years to analyzing and consulting on organizations' IT environments, IT controls and large strategic programs.

  • David Owens, Editorial Director, CFO Research

David Owens is editorial director at CFO Research. He has more than 25 years of experience as a researcher, editor, and writer on business, financial, and management topics. He was a key member of the writing and content development team at Mercer Management Consulting (now known as Oliver Wyman) for 18 years and led the writing and editing department for 13 years.  He is a graduate of Haverford College. David is based in Boston.

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(By Charles Juniper, Reprinted from the Digitalist Magazine)


Stubbornly slow premium growth, the impact of a Millennial generation with different expectations from the traditional customer base, and the very real threat of powerful new entrants like Google is driving a major restructuring of the global insurance industry.  In response to these seismic shifts, many carriers have made  significant investments in attempting to become “virtual insurers” over the last few years, mainly by implementing digital channels to service their customers and networks of sales agents, brokers, and intermediaries.


While this has brought benefits, many of these initiatives have remained essentially isolated from the core processing systems at the heart of every insurance carrier.  So far, the insurance industry has been slow to rectify this disconnect with complex and inconvenient processes built around inflexible and opaque products still characterizing the experience of many policyholders when dealing with an insurer.


Overcoming a poor customer experience is the primary overall objective of core operations modernization


Given the commoditized nature of many insurance products and the growing competitive threat, a key strategy for many insurers is retaining and growing revenues from their existing customer base – for which a critical element is delivering a strong overall customer experience.  Latest research from Ovum reveals that improving the overall customer experience is emerging as the key driver for many core operation modernization initiatives.  This marks a significant shift away from the cost reduction and regulatory compliance focus that has characterized modernization projects since the global financial crisis.


The critical focus on customer experience as a goal of core operations modernization is particularly strong in Europe and Central and Latin America, where the continuing weakness of many markets and the more recent slowing in the Brazilian and Mexican economies is driving a clear focus on customer retention.


The goals of core operations modernization reflect the needs of the particular regional markets

Among insurers in the Asia-Pacific region, the ability to launch new products ranks equally highly as delivering a good customer experience as key goals of core modernization.  The ability to rapidly introduce new offerings in these growing and dynamic markets is a key operational requirement in the region, but insurers do not see these opportunities as simply a “land grab” as they also attempt  to build customers relationships for the future.


The study also revealed a more balanced set of objectives for core operations modernization among North American insurers, showing that they need to use a broader set of more nuanced strategies in order to meet high customer expectations.


Discover the related Ovum report Core Operations Modernization in the Global Insurance Industry.

Submitted by Andreas Klemm:

Consumers expect a seamless experience across channels, with red-carpet service enabled by the latest technology platforms – and not just in the retail sector. Insurance companies are feeling the pressure to deliver consistent, streamlined services to the hyper-connected masses. Informed insurers know they need to make specific strides to stay on the cutting edge of the industry and build customer loyalty:

  • - Simplify core processes across all lines of business
  • - Streamline operations to quickly deliver innovative products to market
  • - Optimize underwriting, policy, billing, and claims processes to reduce costs

Deliver an always-on insurance experience

How can insurers accomplish those goals in such a dynamic climate? They have a bevy of responsibilities and areas to master – ones that change quickly and require great flexibility. They also have to stay competitive by getting to market faster than ever and reducing days outstanding. Four main lifecycles require complete,consistent optimization:

  1. Product and policy lifecycle: Align product creation with customers’ needs for timely, relevant releases.
  2. Claim lifecycle: Process claims quickly and efficiently to ease the burden on your customers and improve sentiment.
  3. Reinsurance lifecycle: Keep a comprehensive view of the entire lifecycle to more effectively manage risk and capacity.
  4. 4.      Billing and payments: Improve cash flow processes to better serve customers in their hour of need.

But modernization comes at a cost. Updating processes and investing in new infrastructure has its own set of challenges:

  • Data conversion issues
  • Long timelines that create expensive and complex issues
  • Trends changing before project completion
  • Cultural resistance to change
  • Lack of adoption

Hit your modernization targets with an SaaS approach

So why wouldn’t insurers want to lessen the burden with SAP solutions that can help them become more customer-oriented, while improving profitability and core processes through:

  • Tailored products and services that target groups and distribution channels
  • Streamlined functionality to expedite data capture and jump-start the claims process
  • Enhanced tracking of individual risk cessions between insurance and reinsurance companies
  • Centralized collections and disbursements to reduce overdue premiums and revenue loss

With SaaS-based software, you can reduce demands on IT and lower potentially prohibitive upfront costs. This way, you can focus on your core business and your customers’ needs, instead of reinventing processes from the ground up.

You can cut costs while complying with applicable regulations and maintaining transparency for stakeholders – and, most importantly, giving your customers the kind of always-on insurance experience they expect.

Find out more about how SAP for Insurance software can help your business drive sales and superior customer service based on a wide range of innovative products…and build customer loyalty like a retailer.

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Over the next few years, major shifts in demographics, economic power, regulation and technology will fundamentally restructure the global insurance industry. The question is, how can insurers survive and thrive in this new world?

Consider the fact that significant growth is expected in emerging economies like India, China, and Latin America, where hundreds of millions of new customers will be entering insurance markets. At the same time, Millennials across all geographies are entering markets – and they come with a whole new set of expectations around convenience, transparency, flexibility, and control.

Make no mistake – going forward, insurance firms that are able to efficiently assess and enroll massive volumes of new customers, while delivering exceptional customer experiences, will have a serious competitive advantage. They will disrupt markets for even the largest and most successful insurers still burdened by legacy systems and processes.

According to a survey of 530 senior insurance decision makers conducted by Ovum on behalf of SAP, most insurers are still running multiple and fragmented core systems, with 41% of all carriers operating 11 or more core operations platforms; 30% of carriers have a core operation environment comprised primarily of in-house developed systems. Meanwhile, insurers in emerging markets are aggressively implementing SaaS and cloud technology in order to bring about rapid transformation of their core operations. According to the survey, 23% of carriers in emerging markets plan to use cloud to support the majority of core processing within 24 months, nearly twice the proportion in North America and Europe.

Ovum’s analysis suggests that a majority of carriers will be at a competitive disadvantage for the next three years. So it’s critical that insurers accelerate their core operations modernization initiatives now. As shared in the paper summarizing the study’s findings, Ovum believes that insurers need to carefully consider the best platform, or approach, for modernizing their operations.

One way to jump-start the process is by including SaaS and cloud technology in their core operations modernization plans. This is particularly critical for carriers in mature markets, who, at the very least, should be implementing SaaS-based core operations proof of concept projects now. This way, they will be ready to deliver organizational benefits in the near-term, as well as to develop the in-house technology skills and experience needed to get the most from these solutions.

What’s your assessment of your firm’s technology readiness to meet new industry demands? Be sure to read the full Ovum paper “Core Operations Modernization in the Global Insurance Industry” sponsored by SAP (minor registration requirement). Also see how SAP for Insurance is helping insurers today with their core operations transformation. Please share your questions and insights.

Different market segments require different approaches


The insurance industry is a rather traditional one. There was no need for transformation for decades. But this is changing now. The drivers for transformation are changing regulation, financial crisis, changing customer expectation, and digitalization – just to name a few. The challenges linked to these drivers are quite different but need to be managed if you want to be successful in the insurance industry. In order to be able to cope with these challenges insurance companies need to start substantial business process transformation.


The “product” of the insurance industry is rather different to products of other industries. From the insurance company’s perspective a significant part of the insurance business is to take risks from the insured and sell the trust to be the right partner to stand in if the risk becomes a claim or benefit case. If insureds lose trust they will move away and look for another “trustworthy” partner (i.e. other insurance companies). However, there are still some other factors which influence the customer loyalty. Insurance needs to be easy to understand, to consume, and offered at a low price.


Even though these factors seem to be key influencers for insurance customers, we need to consider and differentiate between two major market segments: The “old” traditional market which is rather saturated for insurance business, and the “new” emerging market with high growth potential.



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Customers and insurance companies of these two different markets act quite differently. That’s something that global insurance players have to bear in mind when thinking about their business strategy. In traditional markets the focus is on how to find the “right” customers (i.e. someone who is highly profitable with long lasting policies and relatively modest risks). For insurance companies the essential question is: how do we know which customer and which business is the most profitable with little risks?


This leads to a need for sophisticated solutions which support the insurance business analysis. Predictive analytics will be the key to check if your business will still be profitable in the next one or two decades. Analytical solutions can help you to identify the risks and opportunities. A very important component for this analysis is to dertemine  if underlying assumptions and models are still in line with current conditions.


If you signed long-term contracts where future interest income was considered in the premium calculation, then you need a powerful asset management solution which helps you to identify, monitor and mitigate financial risks and their impact (e.g. the effect of low interest rates in the capital markets). Many insurance companies now need to rethink their business. Insurers need to minimize costs of operation, optimize customer services, and increase readiness for new compliance rules and regulatory requirements.


Any transformation at an insurance company needs to be made very carefully. With an existing portfolio of customers who are trusting in an established “old” brand it’s not easy to change and transform into “new” business models (i.e. for example switch the business model from agent to internet based insurance sales). In emerging markets with little saturation rates the situation is different. Parameters like time-to-market for new products and business agility are in focus. In such markets the customer experience and simplified products are of importance. First movers with innovative products will be able to lead the competition.


Compared to traditional markets, we see in emerging markets a higher degree of business agility with a focus on how to attract new customers. While “old” traditional markets are focused on long term business, the emerging markets prefer business agility and short term opportunities.


How can transformation of insurance business be managed?


Depending on an insurance company’s strategy, the transformation of business processes can be managed with different approaches.


1. Industrialization and Standardization

As a first but very efficient step, insurance companies can start with a standardization of their business processes and IT landscapes by using end-to-end solutions (like SAP for Insurance). Many insurance companies have already implemented centralized procurement and shared services for human resources management and financial accounting. With predefined standards and centralized centers of excellence they are able to minimize costs, ensure constant service levels, and speed up response times.


For core insurance business, standardized insurance products can be used to address different channels and different brands. The standardization and simplification of the insurance business is actually the most often seen field of transformation. Once business processes are standardized it’s easy to industrialize them and reduce the costs of business operations. Process automation needs clear business rules, task management, and assignment of responsibility in order to be cost efficient.


2. External service provider

Standardization is often recognized as a prerequisite for business process outsourcing.  Standard processes help a lot when insurance companies need to define what kind of outsourcing services and which service levels are needed. In the insurance industry the use of outsourcing is often seen in only a few processes .  This may be due to data protection laws or compliance rules which prevent the use outsourcing. However, often it’s the lack of standardized processes and openness concerns by insurers to use external support.


The reasons why insurance companies are conservative about outsourcing services often vary. Insurance companies often feel that any shift from internal processes to external service partners is also a shift of workforce. In “old” traditional markets it’s often not easy to replace the internal workforce with external services. Besides strict labor legislation, there are also public employee protection laws which need to be considered. Internal workforce reassignment  is often an important part of every transformation process.


Woever, once a balance is found between external service provider integration and internal resource management the benefits can be very high.


3. Business networks and collaborative scenarios

This kind of transformation is already known and well established in the insurance industry. In auto insurance, for example, where repair shops, loss appraisers, and car rental companies are connected to insurance companies by special tools, collaboration is already established. Nevertheless there is much room to expand the collaboration via business networks like ARIBA. This helps insurers to minimize the costs of operations and speed up customer services.


Collaboration between the insurer and service provider saves time because the service provider has: all of the car details, I can arrange an appointment at any repair shop near your location, and check if the spare parts are available or need to be ordered.



4. Innovative and flexible products

There is a need to shift from provider-oriented to customer-oriented products. Customers do not want to buy products which don’t fit their needs. They want to pay for what they really need instead of buying bundled products which cover risks that they never will be exposed to. For this reason insurers need to increase their flexibility for new products in order to be able to serve customers with tailored insurance offers.


Customers expect innovative and easy to understand products which cover the risks of their individual needs. Insurers often struggle with such requirements because existing application silos are not flexible enough to manage innovative products which may cross different lines of business.


Today in the digital world most customers educate themselves and compare insurance offers before signing a policy. If insurance companies are not able to make a positive impression during the first contact, the prospect or customer will probably look for a competitor. Thus, it's very important for insurance companies to sell a product called "trust" anf improve their chances for success.



5. New business models

Traditional business models for insurance companies are reaching their limits. If insurers want to expand their footprint or improve their revenue it’s necessary to think about new alternative business models. Sometimes it helps to rethink the entire insurance value chain (i.e. which services can be reused or provided in order to increase income and profits, while at the same time minimize total costs). But sometimes it’s necessary to take a look beyond existing borders and start with innovative ideas.


The most important first step is simplification of business processes and system landscapes. It's the precondition for standardization and industrialization. Once standards and simplified processes are established, the next level can be outsourcing or the extension of collaboration and business networks usage.


The time and money which can be saved by simplification can get reinvested in product innovations and new business models. It’s not a strict path to follow but a valid approach to transform the insurer’s business.


Where to start with transformation?


Many insurance companies do not know where to start with their transformation processes. Often questions come up, like:


- What are the priorities of the transformation?

- What kind of benefits can we expect?

- How much will it cost and how much can we save?

- Are we prepared for new the digital world?

- What is the impact on our existing strategies?


There is no simple answer to these questions, but there are a lot of tools and methods available from partners and SAP to help customers find the right answers.


For example, insurance companies who would like to know if they are already prepared for the digital transformation can run a digital fitness assessment. This gives them insight into where they actually stand compared to peer insurers, what steps they need to take, which benefits they can achieve, which business priorities they should focus on, and a roadmap aligned to their strategy.


In my next editorial I will elaborate on different methods which can be used for business transformation support.



Karsten Tecklenburg

Industry Principal Insurance – MEE (Middle & East Europe)

SAP Deutschland SE & Co. KG, Hasso-Plattner-Ring 7, 69190 Walldorf, Germany

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During the course of the year I have the opportunity to join various events which focus on my industry: Insurance. They are engaging gatherings that cover recent innovations, industry trends, suggestions on reducing complexity, and optimizing customer interactions, to name a few. There is a flow of valuable information which is inspiring and actionable, equipping attendees with an understanding of global competition, new technologies, and how to manage the many challenges brought forth by digital transformation. However, all too often the best event sound bites are left behind once the show ends, with the unfortunate consequence of people not retaining some great ideas. But that needn’t be the case.    


For the SAP Insurance events, a decision was made to capture the best commentary through a compilation of manageable, 5-minute or less, videos. These sound bite discussions and presentations have been made available on YouTube and include various thought leaders, such as:


· The transformation of the insurance industry:
Mitch Wein, the VP of Research and Consulting at Novarica talks about the biggest trends in the transformation of insurance companies, and discusses how insurers can simplify their organizations and handle changes with innovation, data and analytics.


· Identifying the key trends in the insurance industry:
Jamie MacGregor, Senior VP for Insurance at Celent, talks about the key trends in insurance, including the way that Big Data is affecting the industry and how Fintech is enabling insurers to better understand the customer experience.


· Digital Transformation in Insurance:
Robert Cummings, Head, Industry Business Unit for Insurance at SAP lays out how the insurance industry is ripe for disruption and transformation with companies now placing greater emphasis on building customer relationships and identifying value-add services that they can provide for their consumers.


· Helping banks and insurers Run Simple:
Ross Wainwright, head of Financial Services Industries at SAP talks about how financial institutions struggle to meet customer expectations due to the complexities that surround a more switched-on consumer, something that can hold traditional banks and insurers back.

These are just a few of the many event videos which have been uploaded recently and many more can be found here. Enjoy and please share your comments.



The Enterprise Software World is changing his face by new modern/lightweight UIs. In SAP Software we see that already with the hundreds of available Fiori Apps, the Simple Finance module and the next generation ERP software S/4HANA. The new software supports the trend to be able to do the job independent from the location and from the device which is used. It is not important anymore that the user needs to be in the office to be able to process e.g. some approval requests and he can use his own smartphone/tablet/notebook in case of "Bring Your Own Device". Of course this change is not only valid (and necessary) for well-known industries like Banking and Logistics. It is also required for the Reinsurance industry.

In the following chapters I will show an Approval Requests Fiori application for FS-RI accounts. Different FS-RI customers work with approval workflows in their business units to steer the release of FS-RI accounts. Whereas the limits and limit types to be checked are different from customer to customer the general goal is always the same. But also the limitation regarding the usage of the approval workflows is the same for all customers at the moment . The users are bound to their office workplace, because they can use the approval workflow just via the SAP Business Workplace or maybe the Universal Worklist. Think about the situation where a manager or head of department has to approve an urgent payment request, but he cannot do it, because he is the whole day in meetings. He cannot access the approval request because he has no access to his PC. With the FS-RI Account Approval Requests Fiori Application he is able to do the approval on his smartphone or tablet during his meetings.


FS-RI Account Approval Requests Fiori Application

Before jumping into the details, a quick overview for what the FS-RI Account Approval Requests Fiori Application can be used and how it is integrated into the release process of an FS-RI account.

Whenever an FS-RI account is released, by default the FS-RI loss payment and loss reserve payment limits (tolerance groups) are checked. In case the user does not have the necessary limits the release process aborts and the user needs to contact a person with enough limits to release the account. At that point, the FS-RI Account Approval Requests Fiori Application and the underlying approval workflow comes into the place. With the integration into the standard FS-RI account release process the user with not enough limits just needs to make a decision to which person the approval request has to be sent, instead of doing this manually by mail or phone (of course this manual decision can also be replaced by an automated decision). The chosen approver then sees the Account Approval Request in the Fiori application and can do an approval, a rejection or a forward to another person. In case an approval is done and the approvers limits are ok, the FS-RI account is released. A rejection triggers that the approval workflow is closed without the release of the account.

As described, in the current version the application just checks the FS-RI limits for loss and loss reserve payments. But in more sophisticated cases it is easily possible to check further limits (like for Incurreds, Incurred Changes) and to support combined limits. With combined limits I mean scenarios where a person A has a limit of 100.000,00 EUR and a person B has a limit of another 100.000,00 EUR. In case an FS-RI account with a loss payment of 150.000,00 EUR has to be approved, person A cannot approve the request because of a to small limit of 100.000,00 EUR. But with a combined limit the additional limit of person B can be taken into account. So both persons have together a limit of 200.000,00 EUR and can approve the FS-RI account with a loss payment of 150.000,00 EUR.

All the enhancements on the backend and frontend side are possible due to the usage of the standard extension concepts of ABAP (for the OData layer) and SAPUI5 (for the frontend).


Deployment Options



SAP Fiori Launchpad

As every Fiori application the FS-RI Account Approval Requests Fiori application can be easily integrated into the SAP Fiori Launchpad. Beside the OnPremise SAP Fiori Launchpad, also the SAP Fiori Launchpad in the Cloud is supported. In that case the application code resources are stored as HTML5 application on the HANA Cloud Platform and the data is retrieved via a secure connection from the OnPremise backend system via the SAP HANA Cloud Connector. Another supported scenario is to integrate the application into the SAP Fiori Launchpad framework page on a SAP Enterprise Portal.


SAP Fiori Client

For the mobile access of the application on a smartphone or tablet the SAP Fiori Client can be used. The SAP Fiori Client is a hybrid application available for Windows 8.1/10, Windows Phone 8.1, Android and iOS. It gives access to the Fiori applications the user is able to access with an improved performance (compared to calling the SAP Fiori Launchpad only in the mobile device browser).


Hybrid Application

In case it is necessary to have the FS-RI Account Approval Requests Fiori application as "native" application available it would be easily possible to create a hybrid application out of the Fiori application.



Following features are supported by the FS-RI Account Approval Requests Fiori Application and the underlying approval workflow.


Approval workflow

  • Integration into standard FS-RI account release process. Approval workflow is started in case the user has not enough limits to release the account.
  • In case a FS-RI account is part of a running approval request, all modification operations on that account (e.g. delete account, change postings, calculate account, ...) are avoided.


Fiori Application

  • The Fiori Application gives an overview of all approval requests assigned to a specific approver. Beside the most important information of an account, also information like account balance and posting details are available.
  • Within the application, the following operations can be executed:
    • Approve: An approval request can be approved. In case the limits of the approving user are enough the application triggers the release of the FS-RI account. If the limits of the approver are not enough too, he is asked to forward the account to another approver.
    • Reject: An approval request can be rejected because of any reason at any time.
    • Forward: An approval request can be forwarded to another person for the approval. This can be necessary in case the original requested approver has no time to proceed the request or if his limits are also not enough.
    • For all three operations (approve/reject/forward) the user has the option to add an optional comment to document why an approval is given, why the approval request is rejected or why it is forwarded. Within the Fiori application the different steps with their comments can be seen. This documentation functionality is also necessary for some audit related requirements.
  • On the SAP Fiori Launchpad Tile for the FS-RI Account Approval Requests application the number of open approval requests is displayed. So the user do not need to enter the application to see how many approval requests he needs to process.
  • Traffic light information for approval requests: By default green means that the approval request is assigned less than 24 hours to the user, orange means >= 24 hours but < 48 hours and red means >= 48 hours.


App impressions


Start Approval Request within FS-RI

In case a FS-RI account is released within the FS-RI accounting transaction (same for loss transaction) and the users limits are not enough the approval workflow is triggered. The user has to select an approver to which the approval request is assigned. An optional comment can be added to give the approver more information about the request. After confirming the entered values, the approval workflow is finally started and the FS-RI account is locked against modifications as long as the approval workflow is running.



Explore Approval Request

After the approval workflow is started and the approver starts the FS-RI Account Approval Requests Fiori application he sees the new approval request.


Within the list of approval requests that one can be found affecting the account for which the approval workflow was started before. On the first tab, some general information about the account can be found.



On the second tab, the approval workflow steps (timeline) can be seen. For that example, it can be seen that my test user gave his approval to release the account by starting the approval workflow.



On the third tab, some details regarding the postings of the account can be seen. If necessary the postings can be sorted within the application by the user. By the way, the amount displayed on the left side (beside the account number) is the balance of the account (all postings aggregated considering the factor of the corresponding entry codes).



On the fourth and last tab, the balance of the key figures for Premium, Premium Reserve, Loss Payment and Loss Payment Reserve are displayed in a graphical way.




In case of an approval (with enough limits) or rejection the user is able to enter an optional comment to document the approval or rejection.




In case of a forward or (approval without enough limits) the user has to select the next approver and can enter an optional comment.




The next approver is then able to see the comment and the previous assignees in the timeline tab.



App impressions in smartphone mode

The previous screenshots showed the application how it looks like on a desktop or on a tablet. Following screenshots should give an impression how it looks on a smartphone cause of the responsive design.




Finally I hope I could give an impression how Fiori applications can also improve the internal processes of Reinsurance business. In case the system landscape is in place it is very easy to rollout this and many more applications for productive usage.

In case there are any remarks or ideas for other Fiori applications, please add a comment to this post.


(Reprinted from the Digitalist Magazine)


Technology, data, and analytics are hot topics in just about every industry these days. However, by all accounts the insurance industry has been slow to embrace the practices and processes of analytics, telematics, and Big Data. While a few frontrunners such as Progressive and Allianz are reaping the benefits of their digital initiatives, other insurers need to follow their lead and seize the opportunity to gather, process, and analyze the actions and behaviors of their customers by implementing technology that makes business more efficient.


The benefits of adopting an enterprise-wide comprehensive insurance technology platform that streamlines core insurance operations are clear. To be sure, there are challenges to redesigning insurance processes and products for the digital age. However, using tech to create an integrated and complete claims management process, simplify policy administration, and efficiently monitor regulatory compliance has proven to be successful. For example, SAP for insurance shows a 44% decrease in audit costs in firms that streamline financial compliance processes.


Know your customer


Insurance sales, often still a face-to-face process, have been one of the slowest areas to adopt the benefits of technology. But modernization need not be at the expense of tradition. Insurance technology allows companies to provide a consistent customer experience across new and multiple channels, matching consumers in their new shopping and purchasing behaviors. In addition, it offers a new level of customer intimacy with access to real-time customer data, enabling companies to more quickly and efficiently uncover and respond to customer trends and buying patterns.


Offer a better customer experience


It’s no secret that the trend is for customers to interact with their insurance companies less often and preferably via the Internet. For that reason, customer-centric insurers who creatively engage with consumers online are pulling ahead of the competition. Even for face-to-face encounters, improving the overall customer experience with accurate and up-to-date data and information is the best way to ensure the success of the sales force.


Maximize your data usage


One of the fastest-emerging gateways to new forms of customer data and behavioral information involves the Internet of Things. Small devices attached to vehicles, embedded in home appliances, and other sensors found in consumer products are gathering data and are set to transform the way everyone does business. Insurers now have new ways to collect data, assess risk, and therefore create new product offerings in tune with current market data. Insurers that have cultivated the systems and processes to gather, analyze and use this copious amount of new data will be one step ahead. Businesses that are listening to the buzz and investing now for the future will be the ones reaping the benefits of the new opportunities that come with the changing landscape.


The insurance industry is on the brink of change and it is time to embrace the future or be left behind. The key is using technology to enable the customer-centric insurer to drive the sales and service of innovative products and cut costs, while staying compliant. Learn how SAP can help here.



Big data, mobile and the Internet of Things are key trends driving insurers to go digital. But going digital is not just the latest “new thing” or new title (e.g., chief digital officer). It’s not just about marketing or sales. It is a fundamental shift in how customers, both individuals and businesses, interact with insurers throughout the insurance life cycle and how carriers not only sell but also underwrite, adjust and provide other services. It’s about being connected to the insured and insured objects in real time, all the time. And it’s about intelligent interactions fueled by data and analytics.


To be a digital insurer, you need a digital strategy, digital capabilities, digital culture and a digital executive champion.

  • Digital strategy defines what digital means to your organization and how it is aligned with your overall business strategy. It requires looking at digital threats and opportunities, their potential scale and alternate responses. It includes looking outside your usual competitors at disrupters like Amazon or Google and determining if they are competitors, partners or both.
  • Digital capabilities include data management, analytics and databases.You must be able to access and integrate a myriad of data streams – social, machine-generated, external, structured and non-structured--in real time. Data security is also a key capability. You must evaluate the state of your current technologies to leverage digital content and to empower meaningful interactions. 
  • Digital culture is about people and processes. It includes aligning your organization; evaluating, developing or hiring digital talent; simplifying your business processes and ensuring that you are agile enough to adapt them quickly; and creating and monitoring digital key performance indicators aligned with your strategy.
  • Digital champions advocate and champion transformation. Digital transformation is usually a board-level business initiative led by the chief innovation officer or senior vice president of strategy working closely with the chief information officer or chief technology officer. A Digital Champion is an executive business sponsor who works closely with IT and the business areas.


You don’t become digital overnight. Take a "crawl, walk, run" approach. Leverage existing capabilities and extend, or develop, new ones using pilots. But instill a “fail fast, fail often” mentality; be agile enough to execute many projects and learn from them. Then extend them across the enterprise.


The return on investment can be significant. Digital leaders can achieve a significant increase in sales; they can also reduce administrative and claim costs by digitizing processes and providing more self-service.  But Insurers should also consider the cost of doing nothing--the loss of both market share and profitability to competitors, especially nontraditional ones.


Pat Saporito is senior director of SAP Global Center of Excellence for Analytics and author of Applied Insurance Analytics: A Framework for Driving More Value From Data Assets, Technologies and Tools, FT Press. She may be reached at pat.saporito@sap.com.

"This is a summary of an article published in the Technology Insight column in Best Review, titled: Brave New World.  Read the full article in Best Review and listen to the companion podcast. www.bestreview.com"

To send data from SAP FS-CD system to other systems, SAP has provided a container known as the Information container. Standard processes like Dunning and Returns use this container to send data to systems like SAP FS-PM. There may be scenarios where you might need to send data that is not covered by these standard information containers. So we can create our own custom information containers.


Process Steps


IMG Activities:-

  • Customizing entries can be created as shown in the below picture


  • Standard Information container entries can be seen below. Similarly we can create our own Information container category e.g. Z001. Before we add a new entry in the below customizing node, we have to create three structures and an implementing class. We can use the standard classes and structures as a template and create our own objects. The structures represent the type of data that we need to send and the class is responsible for executing the process. It is not required to modify the methods of the implementing class but the structures should be modified to cater the requirement. I have not experimented much with the storage type. The data is stored as a XML string in the main information container table.


  • Once the above step is completed we should activate the new information container category as shown below. Again for the send type, I have always used Remote function call.



Development Activities

Below is the list of function modules that should be created in the system:

  • Function module A: This function module checks whether the information container is active or not. Standard function module FKKINFCO_TYPE_0001_CHECK can be used as a template.
  • Function module B: This function module saves the relevant data to Information container database tables. Standard function module FKKINFCO_TYPE_0001_STORE can be used as a template.
  • Function module C: This function module should serve as the starting point of picking up the data, hence this function module can be called at a point where it is desired to send data to Information container. Standard function module FKKINFCO_TYPE_0001_POST can be used as a template.
  • Function module D: This function module should be called in event 3703 and is responsible for sending the data to different systems. The event 3703 is called when the mass activity for Information container is executed. Add this function module in FQEVENTS transaction under event 3703. Standard function module FKK_SAMPLE_3703 can be used as a template.

Function modules from A to C will call the different methods of the implementing class at various point of time.


  • Once the triggering point is set, the entries for the information container can be checked in the table DFKKINFCO. This is the main database table for the information containers. One more additional database table is DFKKINFCOS.
  • Run transaction FPINFCO1. Mass activity for Information container.
  • Check the status of sent entries in transaction FPINFCO2

Hope this blog helps

When one starts to work with  policy management solution from SAP it is important to get familiar with the product . Especially if you are tasked to work with some custom development.


There are few frameworks that make sure  things work smoothly in FSPM such as PBT (Policy based technology ) and Time model Functions( to enable the policy positioning n the past or in the future ) . Along with learning these frameworks it is always useful to play with the existing available UBOI interfaces and learn how it works .


Most of the tasks in the FSPM are depending on the policy business object which is manipulated  using various UBOI interfaces depending on the requirement.


Please find below sample program to start playing with UBOI interfaces in SAP FS-PM




    lr_date_service         TYPE REF TO   /pm0/if_abp_bc_extcordt_srvcs,

    lr_date_service_init    TYPE REF TO   /pm0/cl_abp_bc_excodt_srvcs,

    ls_polpr_key            TYPE          /pm0/abvapolpr, "/PM0/ABVAPOLICY

    lt_polpr_keys           TYPE          /pm0/abvapolpr_t,

    lf_extenal_date         TYPE          abap_bool,

    lf_correspondence_date  TYPE          abap_bool,

    lf_bts_date             TYPE          abap_bool,

    lv_applnr_tt            TYPE          /pm0/abd_applnr_tt,

    iv_planstate_id         TYPE          /pm0/abd_stateextdate_id,

    it_polpr                TYPE          /pm0/abwapolpr_t,

    gr_get_policy           TYPE REF TO   /pm0/if_abp_tc_get_policy,

    gr_get_polpr            TYPE REF TO   /pm0/if_abp_tc_get_polpr,

    gr_get_cov              TYPE REF TO   /pm0/if_abp_tc_get_cov,

    lr_uboi                 TYPE REF TO   /pm0/cl_abp_bou_ctr_fac,

    ls_policy_key           TYPE          /pm0/abvapolicy,

    it_policy               TYPE TABLE OF /pm0/abwapolicy,

    lv_duedate               TYPE         /pm0/abd_duedate_dt.






  DATA :

        it_covdetail TYPE TABLE OF /pm0/abwacov,

        is_sec_cov   TYPE /pm0/abvacov,

        ls_cov_det   TYPE /pm0/abwacov.

  /pm0/cl_ab_bpu_registry=>init( 'D').



  IF /pm0/cl_ab_bpu_registry=>gr_ctr_fac IS BOUND.

    gr_get_policy = /pm0/cl_ab_bpu_registry=>gr_ctr_fac->get_gb_policy( ).

    gr_get_polpr /pm0/cl_ab_bpu_registry=>gr_ctr_fac->get_gb_polpr( ).

    gr_get_cov /pm0/cl_ab_bpu_registry=>gr_ctr_fac->get_gb_cov( ).



  FIELD-SYMBOLS : <fs_polpr> TYPE /pm0/abwapolpr.

*get the application number for a certain existing policy

  SELECT SINGLE c~applnr_tt  INTO  lv_applnr_tt FROM /pm0/abdapolicy AS p INNER JOIN /pm0/abdapolpr AS c ON p~secpol_id = c~policy_id

      WHERE p~policynr_tt = '' ."enter existing policy number here




*get reference to the date service

  lr_date_service = /pm0/cl_abp_bc_excodt_srvcs=>get_singleton( ).

  lr_date_service_init ?= lr_date_service.


*Load the application



      iv_effective_dt = sy-datum

      iv_policynr_tt  = ''"enter existing policy number here

      iv_polprnr_tt   = lv_applnr_tt


      es_polpr_key    = ls_polpr_key

      ev_planstate_id = iv_planstate_id


  CHECK iv_planstate_id EQ '0'. " Plane State OK

  ls_policy_key-bo_id = ls_polpr_key-bo_id.


*Get policy Data


      CALL METHOD gr_get_policy->get_policy


          is_sec    = ls_policy_key


          et_policy = it_policy.

    CATCH /pm0/cx_abp_uboi .

      WRITE : 'Exception in UBOI'.

    CATCH /pm0/cx_3ft_exception .

      WRITE : 'Exception in Framework'.



*Get contract data

  CALL METHOD gr_get_polpr->get_polpr


      is_sec   = ls_polpr_key


      et_polpr = it_polpr.

  READ TABLE it_polpr ASSIGNING <fs_polpr> INDEX 1.


  MOVE-CORRESPONDING ls_polpr_key TO  is_sec_cov.



*Get Coverage data


      CALL METHOD gr_get_cov->get_cov


          is_sec = is_sec_cov


          et_cov = it_covdetail.


    CATCH /pm0/cx_abp_uboi .

    CATCH /pm0/cx_3ft_exception .


Similarly some other APIS can also be used once the policy BO is loaded

DATA:   et_document_cf TYPE /pm0/abcn_cashfl_t,

        et_cfdocs TYPE /pm0/abn_cashfl_t,

        account_data TYPE REF TO /pm0/cl_ab_int_ac,

        et_document_nc TYPE /pm0/abcn_nocash_t.



  CREATE OBJECT account_data.


*get cash-flow documents for certain Contract


  CALL METHOD account_data->/pm0/if_ab_int_ac~get_docs_cf


      is_polpr_key   = ls_polpr_key


      et_document_cf = et_document_cf

      et_cfdocs      = et_cfdocs.


*get non cash flow documents for certain contract


  CALL METHOD account_data->/pm0/if_ab_int_ac~get_docs_nc


      is_polpr_key   = ls_polpr_key


      et_document_nc = et_document_nc.




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