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SAP for Insurance

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It’s been an exciting first couple of days here in Orlando at SAPPHIRE NOW. I’ve had great discussions and met with interesting people from across the insurance industry, and everyone is buzzing with new ideas and innovations – and we still have a whole day left!


The keynote sessions have been a real highlight of the conference, bringing together attendees across industries and LOBs to discuss the big topics affecting all businesses, including digital transformation. Bill McDermott, CEO and member of the Executive Board of SAP SE, started the convention with an inspiring speech, and was followed in the afternoon by innovators in very different fields. Steve Wozniak, co-founder of Apple Computer Inc., participated in a fascinating discussion about disrupting an industry and igniting the computer revolution to change the world. Another industry disrupter, Welby Altidor, executive creative director of creations for Cirque du Soleil, gave a speech titled “Creative Courage: Challenge the Status Quo in the Era of Digital Transformation and Make Big Ideas Happen,” proving that digital innovation can happen in almost any industry.


Turnout  this week has been great; every part of the conference feels like it’s overflowing with excited attendees. Following #SAPPHIRENOW is a great way to see everything that’s happening, and for my colleagues who couldn’t make the conference this year it has made them feel almost like they are attending (although they won’t be able to join us tomorrow to see Coldplay in concert). Ideas are traded around like hot stock tips here in Orlando, and the energy in every room is infectious.


One area that has been a hotspot for ideas is the demo stations section. The demo stations for the insurance industry are covering a wide range of topics. The demo for cost and revenue allocation for financial products provides interesting insight into how being powered by SAP HANA has allowed the SAP Cost and Revenue Allocation for Financial Products application to provide real-time analysis. I was really excited by the demo for the SAP S/4HANA Finance solution, formerly known as SAP Simple Finance, which shows how the in-memory platform allows companies to optimize processes, run on-the-fly analysis, and more. There’s also a demo of the newest analytic applications from SAP – SAP Insurance Analyzer analytic applications; attendees were thrilled to see that the applications will help companies comply with new IFRS 4 accounting principles and Solvency II guidelines. Demos also cover insurance policy and quotation management, business planning and consolidation, and collections and disbursements management. If you’re down here in Orlando, be sure to stop by the demo stations before the end of the conference.


Attendees from the car insurance industry were very excited about new solutions that were announced down here. With the innovations in connected devices exploding with the IoT, connected cars are one of the biggest disruptors in the automotive area. SAP Vehicle Insights collects telematics data from vehicle sensors, and to maximize the usage of the data, msg-global has developed msg IoT Analyzer. Together the solutions will help insurance companies gain a competitive advantage.


There have been over 20 insurance-related demo theaters and interactive sessions over the past two days, and attendees are both busy and inspired. On Tuesday, there were sessions discussing e-prescriptions, promoting consumerism, visualizing future outcomes, and, of course, the topic of the year – digital transformation. On Wednesday, sessions covered rethinking the role of bots, streamlining profitability analysis, taking advantage of predictive analytics for the masses, and more. As happens every year, themes have emerged from all of the sessions, linking the unique challenges and opportunities we have in the insurance industry. Customer centricity is proving to be as important as ever, as is the collection and analysis of data. There is also a lot of talk about the necessity for insurers to reimagine their business models and operate on a platform that enables live business. And the great thing about SAPPHIRE NOW is that these discussions are happening between the people who need the solutions, and the people who are designing and providing the solutions. Watching these in

Continue to follow the action at SAPPHIRENOW, where you will find streaming live sessions tomorrow and recordings after the event ends.

Written by Stefan Schmidt


Business networks are taking on an increasingly important role in our economy, and the numbers speak for themselves. In 2013, revenue on business networks topped USD$ 2 billion and is expected to increase by half again in three years. That’s strong growth.


Broadly speaking, there are three kinds of business networks: electronic data interchange (EDI), cross-industry, and vertical industry networks. At their core, all of them offer ways for buyers and suppliers to exchange documents much more efficiently than otherwise possible. But, inevitably, efficient document exchange between business partners is becoming commoditized. The result is that across models and within them as well, competition is heating up.


The value add

When competition heats up, the pressure is on to differentiate. Business networks are now attempting to do this by moving to more fully realized B2B business networks where additional services are offered to add value.


SAP Ariba falls into the cross-industry category and has been moving in this direction for years. Since 2011, the Ariba Network has been growing steadily, and today is the largest cross-industry business network out there with revenues of about USD$ 228 million in 2014 (representing about 36% of the market for this model).


I think that this growth has to do with the additional services and integrated partner offerings the Ariba Network offers in a number of areas. For instance, in addition to invoice and purchase order (PO) exchange, the Ariba Network also offers catalog management to present available products and services in a clear manner, Ariba Discovery to quickly find buyers and qualify suppliers, and AribaPay to allow buyers to securely pay suppliers via the Ariba Network – while eliminating the need to maintain supplier bank account information and reducing supplier payment inquiries.


Speed is of the essence

Insurance companies in particular are finding value in the Ariba Network. They’re also finding value in another B2B network - the SAP Financial Services Network. With SAP Financial Services Network, you can establish relationships with banks and start talking the same language in a fraction of the time it would otherwise take with lengthy implementation cycles. You can also use a business cockpit with the SAP Financial Services Network to digitize your overall financial supply chain process. This means that you can start transacting with more partners in less time and at far lower ramp-up costs – and once you’re up and running, you can manage your processes with greater visibility.


Our objective moving forward is to constantly increase the value of the Ariba Network and the SAP Financial Services Network in such ways so that insurance companies, corporates, and banks can work together in exciting new areas. But because business networks like the Ariba Network and the SAP Financial Services Network can make it so easy for insurance companies to establish relationships with partners and start transacting quickly, non-traditional insurance companies are starting to enter the business and capture market share. This makes getting onto these networks more pressing than ever for insurance companies. My recommendation is to move fast.


Want to learn more? Please visit us at SAP/insurance, SAP/Ariba, and SAP/FSN. Or find me via Twitter at @ StefanFSchmidt.

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Increasingly, there seems to be a mismatch between distant, impersonal insurance firms and ever-more demanding customers. Let’s look at how technology can help you to nurture strong, lasting relationships and provide a personalized service that delights customers just as much as – or even more than – in the “good old days.”


Familiarity breeds respect

There was a time when every neighborhood had its own insurance broker. As part of the community, the broker would become familiar with each customer’s situation and interests. And with “insider” knowledge about key life milestones such as getting married, buying a house, or the birth of a first child, he could offer relevant advice on a range of insurance products.


Long-established relationships built on familiarity and mutual respect meant that customers didn’t feel the need to shop around for their insurance, or switch to a different provider each year. They simply went to the man who knew their needs, and trusted him to find an insurance deal that would work best for them.


The distant insurance company

Jump forward to the present day and the situation couldn’t be more different.

Two decades of using technology to optimize processes has resulted in some key wins for insurance companies. By transferring many of its customer interactions to call centers, automatic telephone systems, and Web sites, insurance firms have undoubtedly improved efficiency and cut costs.

However, from a customer perspective, it’s arguable that service levels have never been so bad. In the absence of close personal relationships, there is now a disconnect between the customer and the insurance company.


Distant and “faceless” firms have no access to detailed information about the customer’s life such as what his priorities are and what life events are happening right now. So instead of approaching customers with appropriate offers that are tailored to their circumstances, companies all too often bombard people with impersonal and irrelevant marketing messages.


Rise of the demanding customer

Technological advances may have resulted in insurance companies distancing themselves from customers. However, in many industry sectors this has not been the case. The retail sector in particular has embraced technological tools and platforms that have enabled companies to become more intimate than ever with their customers. Some consumer goods companies even seem to know what you want to buy before you do.


In-depth profiling based on information gained from Internet usage and social media helps companies in other sectors to build trust and make relevant, personalized offers. Meanwhile, their customers have become accustomed to using the channel of their choice to interact with companies – be it by telephone, mobile app, or a Web site.


In short, customers now expect more – and if you don’t give them what they want, they’ll find someone who will.


Bridging the gap

The challenge for insurance companies is to rebuild the invaluable contextual information around each customer that has been lost in recent years. Innovations such as the SAP hybris Marketing solution support this process by helping you to observe people’s behavior online so you can build up an in-depth profile of each potential customer.


For example, if someone talks about buying a new car on Facebook, it is likely that they will need to purchase car insurance at some point soon. The SAP hybris Marketing solution gathers this intelligence so that you can then send information about an appropriate product to that individual. If they receive a relevant offer for car insurance at the right time, it’s much more likely that they will decide to purchase the product.


Seamless omnichannel service


The financial services accelerator of the SAP hybris Commerce solution helps ensure that any information previously provided by a potential customer is immediately accessible at every touch point. So, if they already provided certain details on an online form and then decide to speak to someone on the phone, they don’t need to provide this information again. The call center operative will see it on their screen and be able to refer to it in their conversation.


To compete in a market that is increasingly threatened by new players, it’s critical for insurance providers to deliver the wide choice of interaction channels that customers now demand. A seamless omnichannel service enabled by the financial services accelerator of SAP hybris Commerce offers this freedom of choice and makes it easier for people to do business with you.


A bright future

By deploying SAP solutions, insurance companies now have an opportunity to place the customer at the heart of their operations. Not only will this allow you to regain the close customer relationships of yesteryear, but you can also go further to provide a better service than ever before.


Deeper customer insights will enable you to provide personalized offers that are truly relevant to the individuals you target. Meanwhile, smooth omnichannel interaction will help you to offer service levels that delight the customer, providing a bright future for the industry.


To find out more about SAP solutions for the insurance sector, visit http://discover.sap.com/digital-insurance or connect with me on Twitter at @rolandbloesch.



Simple Product Deployment was first mentioned in the blog of Bjoern Panter.  The official product name is SAP Policy Management Product Deployment add-on. SAP customizing for defining a product module group and extending it to various product module ids is a cluster view based development. This customizing approach is available as part of the standard (transaction) SPRO through the SAP R3 GUI of FSPM. Insurance products tend to change in a regular basis which means new products required to be defined in the system. These new products have usually a reference to the existing products. During definition of new product, users have to copy all the assigned characteristics such as Product module dimension, product module class, product module group of the source product to the new product.


Architectural overview



Simple Product Deployment is implemented as an add-on for SAP FS-PM 5.3. The SPD UI layer contains the frontend parts of the application. The frontend components will SAP UI5 applications running in a web browser. The UI layer is based on the Fiori design principle and contains only static content which is loaded into the web browser.  The SPD backend layer contains the dynamic parts of the application. This data access layer is the only layer that accesses SAP FS-PM application log components for reading and/or writing. The SPD Odata layer is responsible for processing the required information. It also checks the input and (possible) output enrichment is performed here. The Odata layer gets triggered from NetWeaver Gateway based on the Odata request from the frontend.


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The SPD Fiori Launchpad



The SPD Fiori Launchpad has 5 tiles or applications:

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1. Product modules – Search Product Modules


With this application you can view and/or configure a product module. The tile displays the total number or configured product modules.


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Essential buttons are available to use on the bottom of the page.

  • You can easily display all the product module ids which are used by a (selected) dimension
  • You can easily display all the product templates which use the product module id.
  • You can use the edit button to change a product module group of a dimension-class combination.
  • You can delete a dimension class from the product module id.
  • You can add a new dimension-class product module group.
  • You can even copy the product module id (configuration) to another one.



2. Pending Product Modules


With this application you can manage and view the not (yet) configured product modules. The tile displays the total number of product modules which need to be configured.


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Essential buttons are available to use on the bottom of the page.

  • You can easily display all the product templates which use the product module id.
  • You can use the manage button to configure a product module group and dimension-class.
  • You can even copy the product module id (configuration) from another one.


3. Product Template


The Product Template tile displays the total number of product templates in the system with status In Progress. With this application you can manage a product template.

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Essential buttons are available on the bottom of the page.

  • You can check a product template. Standard checks will be performed.
  • You can move a product template to your own worklist; status of the product template will change automatically to in process.
  • You can also copy the product template to another one. Copy simulation can be performed here as well, which means you can evaluate the result before triggering the actual copy.
  • You can compare the two different product templates with each other.       



  • You can see the whole tree of the product template; root and sub template can be displayed on a single screen. 

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    • From the resultant screen user can check the sub tree from any level including top most level. This will trigger a back ground job.
    • From the resultant screen user can copy sub tree from any level including top most level. This will trigger a background job.


4. Browse results

Long running processes, e.g. copy product templates with sub templates, are triggered in the background. With this application you can search for the copy and check processes which was initiated in the product template application.


5. Template worklist

The Template Worklist tile displays the total number of product templates in your user worklist. With this application you can view and/or manage the product template with status in progress and also release a product template.


For more information SAP notes:

2244018        Release strategy for the ABAP add-on FSSPD

2244020        Release strategy for the ABAP add-on FSSPDUI

By Birgit Fien-Schmalzbauer, Head of Research and Innovation, SAP for Insurance, and Sunil Khaladkar, Director, Business Model Innovation, SAP

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There’s no question that the insurance industry is ready for some big ideas. The real question is who is going to bring the next “game changing” idea to a market that’s increasingly hungry for customer-centricity. We know that there are talented people inside insurance enterprises who have big ideas that can help the established carriers continue to lead the industry in the digital economy.

But in order to achieve this, insurance carriers will have to wholeheartedly embrace the digital revolution by thinking and acting at the pace of a tech-savvy startup. This can be done by harnessing the capabilities of the Internet of Things. However, the biggest roadblock any insurer will have to get past will be their own “corporate immune system.”

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At SAP we created the Business Model Innovation (BMI) service center to tackle this issue effectively. We’ve finally discovered a way to incubate innovative ideas so we can test them and bring them to market in a low-risk way. That allows us to focus more on making strategic, market-driven changes rather than getting bogged down with operational issues.

We’d like to share some of the best practices the BMI team has discovered in its mission to implement the right business model for every innovation, faster.


Innovation requires a unified team focus

Two concepts drive the BMI team:

  • One team/one dream
  • Think big, start small, fail cheap

“One team/one dream” is more than a catchphrase to the BMI team. Rather, this idea provides a unifying focus – that everyone’s goal is to breathe life into a new business and work together to push through boundaries of corporate systems that would normally resist a bold step.

The BMI group is not an idea management team. Instead, it operates more like a business test lab, vetting product ideas that are created around business hypotheses, and then finding ways to create and test suitable business models in a pragmatic way.

The team consists of 19 experts from all functional business units. When necessary, they bring in experts from other areas to help scale obstacles.

Getting to market quickly with low risk

The BMI group encourages smaller steps to mature new business hypothesis from all functional business angles. This can be achieved by creating minimum viable products or controlled commercial pilots that we can release to a small subset of customers.

With consumer demand for more customer-centric offerings, insurance carriers that can mobilize focused teams that think big but start small are more likely to remain competitive in the digital future.

The SAP for Insurance team is well supported by the BMI group and looks forward to working with insurance companies with game changing ideas. Reach out to us for more details and collaboration.

For more information, see SAP Digital Insurance Strategies, or connect directly with me via Twitter @birgit_fien.

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It’s springtime and to me that means Red Sox baseball, the Kentucky Derby, and another SAPPHIRE NOW just around the corner. Our team has been very busy developing new sessions and experiences that we know will generate a lot of interest. As you make your plans to join us at SAPPHIRE NOW in Orlando, Florida on May 17–19, here’s your preview of what we have created for members of the insurance community this year.


Interactive sessions

Our interactive sessions bring together experts from across the insurance industry to discuss the newest trends, solutions, and insights that you can use in your business. On the finance side, we will have sessions exploring how to extract additional value from your data assets, streamline risk and finance processes, take a digital journey through the world of finance operations, and more. We will also cover the insurance perspective of all things digital, including how to become a digital customer-centric insurer and how to accelerate your speed to market with new product innovations for insurance. With such a range of topics, you’re sure to find interactive sessions that will send you home with creative ideas to share with your colleagues.


Strategic presentation

This year’s strategic presentation is a must-attend event for companies that want to attain an integrated, analytic view of customers, finance, and operations. Discover the newest innovations in the industry that will help you improve client and product profitability, and gain real-time insights into performance metrics. Our customer’s testimonial will explain how they aligned their financial and operational reporting using SAP solutions.


Demo theaters

The demo theater presentations offer quick, 20-minute sessions to introduce you to a wide range of SAP for Insurance solutions for your company. This year we’re presenting demonstrations covering the following topics:


  • Peer into the future of the digital insurer
  • Visualize future outcomes with cloud-based analytics
  • Manage complex insurance with profitable customers and products
  • Simplify enterprise data management without disruption

Demo stations

On the show floor you can visit our demo stations and see the newest solutions for the insurance industry. With the SAP for Insurance solution portfolio, you can begin, or continue, your digital transformation while gaining efficiencies that lead to a competitive advantage. Discover how our portfolio supports cloud-based core and administrative systems, omnichannel sales and service, and predictive analytics, all simplifying the operational landscape for your business.


Panel discussion

Explore the digital transformation and its impact on financial services at our panel discussion on the last day of SAPPHIRE NOW. The digital transformation provides strategic opportunities for businesses, with better customer, supplier, and workforce interactions. Learn how to improve operational efficiencies, while adding value to your business….directly from our panelists made up of SAP customers.


I hope to see you this year at SAPPHIRE NOW in Orlando. Register today.

Join Deloitte and SAP for our webinar " Insurance Boardroom of the Future" at 11:00 a.m. BST / 12:00 p.m. CEST on Tuesday 19 April, 2016.


Finance's role in the organisation of insurance businesses across all markets is becoming more central. A recent CFO.com survey – sponsored by SAP – found that the finance function is no longer just about finance. CFOs told us that the organisational scope of their role is expanding to encompass other key functions, like risk management, M&A and IT. In fact, 35% of more than 210 respondents said finance's influence within the organisation will continue to grow within the IT department. All this against a backdrop of an increasingly digital insurance market, with savvy customers, disruptive new competitors and heightened regulation on capital, business conduct and financial reporting.


Attend this live webinar to find out:


  • What are the top priorities in 2016 for insurance CFOs?
  • How to manage costs and risks relating to new regulations such as Solvency II and IFRS4 Phase II.
  • How to achieve efficiency savings when non-discretionary spend seems large and unavoidable.
  • How innovative technology like in-memory computing and advanced analytics can help you realise your business goals.


Registration link



For the insurance industry, the Internet of Things (IoT) holds tremendous promise. Take automobile insurance as an example. Today, insurers can use connected vehicles and the IOT to gather sensor data regarding driving behavior, location information, vehicle diagnostics, and more. This has enabled insurers to deliver usage-based insurance (UBI) offerings such as PAYD and PHYD (pay as you drive and pay how you drive). Some companies have gone even further with features such as automatic crash notification, geo-fencing, repair notification, roadside assistance, and personal concierge services.


Collaboration and the means of delivery


This is a good start – but to capture and deliver the full value of what the IoT has to offer, insurance companies need to come to terms with the ways in which this value is delivered. And with the IoT, the ability to deliver value increasingly depends on collaboration.


The fact is, in the age of the IoT, value chains are too multifaceted for any single market player to deliver everything on their own. For auto insurers, one obvious way forward is to collaborate more seamlessly with auto manufacturers. These manufacturers, after all, are building the cars with the sensors in them already. If they choose, they could start to offer IoT-based insurance themselves.


This may be overstating the case a bit. After all, manufacturers don’t necessarily have the expertise to move into the business overnight. But the writing is on the wall for insurers: start collaborating or start to lose market share.


Silos no more

For the traditional siloed insurance company, this is bad news. For the forward-thinking company that is ready to change, it’s very good news indeed – because the IoT offers tremendous opportunity.


Change, however, requires insurers to fundamentally reimagine their business models to break down silos and facilitate collaboration. One-off projects that keep siloed processes and landscapes intact will fall short. Instead, insurers need comprehensive digital transformation. But just as no single company or industry can dominate the entire customer value chain on its own, no single vendor can deliver out-of-the-box IoT on its own. Thus, what insurance companies need is an application development framework based on open standards to rapidly create solutions for various IoT scenarios.


Connect, transform, reimagine


This is where SAP can help quite a bit. Take for example, SAP HANA Cloud Platform. As the name suggests, this is a cloud-based, in-memory platform that helps you open up and automate processes at the core of your business – enabling you to connect to almost anything in collaborative fashion to deliver the value your customers seek.


With SAP HANA Cloud Platform, you have access to core capabilities such as predictive analysis, geo-spatial processing, series data, and location services. On top of this, you can also use SAP Vehicle Insights, a cloud-based application that links vehicular data with sensor data to provide actionable insight. And to do all of this in a collaborative way, you can use SAP Vehicles Network – a B2B business network solution that facilitates connections among different market players.


With a foundation like this in place, you can rapidly develop, deploy, and manage real-time IoT applications – and connect them to the larger customer value chain in collaboration with new business partners as new use cases emerge. In the end, this gives you the agility you need to move quickly and seize the advantage in an increasingly networked economy where value is measured by the quality of the customer experience you deliver.


Want to learn more? Visit us at http://discover.sap.com/digital-insurance or find me via Twitter at @UweHofstaetter.

We all know SAP For Insurance or do we? Our recent poll at US Insurance Agents among our listed independent and captive agents suggests that only 25% of agents are in cloud, while 45% plans to move within next 1-3 years. We are moving closer and closer to the era where cloud will be the only solutionto store backup copies of computer files for insurance agents who would be severely inconvenienced if important information was not available.


With the primary concern for the customers being the need for security and mobility there are five important reasons for using cloud computing:


Backup Copies of Files


As simple as it gets - backup copy of a file should be saved on a different device because a hardware tends to break down and software is known to crash. Users could store file copies on a secondary hard drive or upload the copies to a cloud. Some users may save file copies on a flash drive or on a computer disc. An insurance agent may require more than 600 GBs of storage space for file copies, which would require several flash drives or computer discs.


Cloud Computing


A cloud should be used not only as a secondary location for saving and for retrieving files but  Internet connection while retrieving the files and may have a contract with a broadband service provider that offers limited coverage in several areas. If the customers are forced to connect to the Wi-Fi signal from a hotel or a coffee shop, then there could be serious problems with regard to security.


Hard Drives


An external hard drive can be used to save backup file copies and will not be affected if a computer crashes. The files on a hard drive cannot be accessed with a Wi-Fi connection. A cloud could be used for remote access with a smartphone or a computer. A hard drive can be damaged by excessive heat or by exposure to moisture. Users could accidentally spill a cup of coffee or a soft drink on a desk, which would damage the hard drive.




An insurance agent is responsible for protecting the personal information of each client and should be aware of any potential problems that could be caused by an online backup service. The files should be protected with passwords and with a personal key code. The security features of a cloud will be controlled by the company that provides the online backup service. The passwords may not be secure because information on the Web could possibly be seen by other users on a computer network.


Online Backup Services


There are multiple parameters for cloud computing. A user may want to choose the different files that will be uploaded to a cloud. Some online backup services are used to continuously copy the files from a computer. An important aspect of the process for uploading a file is the transfer rate for the data. If a user has a slow Internet connection, then the time period for uploading a file will be longer than the time period that would be possible with a high-speed Internet connection.




There are additional costs for uploading computer files to a cloud because a user will be transferring data over an Internet connection. Many users may have a monthly limit for data transfer such as 10 or 12 GBs. An insurance agent should carefully monitor his or her data usage and may prefer to control costs by choosing the individual files to upload to a cloud.

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The connected home is getting more connected, with Gartner predicating that a typical family home could contain more than 500 smart devices by 2022. Connected energy and security systems, along with smart appliances, are all making home life more comfortable, efficient, and secure. Plus, homeowners are experiencing greater peace of mind, as they easily can control and manage their household systems while at home or away from their mobile devices.


But what about the insurance carriers that protect those homes? For them, the Internet of Things (IoT) and smart devices bring new opportunities for revenue growth, increased customer loyalty, and competitive differentiation. But along with these benefits come a few challenges that require a whole new approach to business.


Internal operations: Greater efficiencies and accuracy


Let’s look at the opportunities first. Thanks to the IoT, new intelligent insights can improve internal insurance operations, with benefits such as more intelligent risk assessment, greater accuracy in premium calculation, and faster and more efficient claims processing.


Intelligence from the connected home also provides insurers with the opportunity to create other value-added services. Real-time personalized products based on detailed information about usage, behaviors, and location can be created to make customers’ lives easier. And new services can be offered in combination with a network of trusted service providers and retailers to extend customer loyalty even further.


The road to more intelligent insurance


On the challenge side of things, insurers may need to adopt a business model that includes smart insurance solutions. To fully take advantage of the intelligence generated from a smart home, they will need solutions that improve customer engagement, core operations, and overall finance processes.


Innovative solutions from SAP in Big Data, analytics, mobile technology, and cloud computing allow insurers to modernize processes and transform operations. Using these technologies, insurers can streamline operations and improve productivity, agility, and service while controlling cost and risk.


Here are a few of the offerings from SAP that insurers can take advantage of:

  • The SAP HANA platform leverages in-memory computing and powerful, scalable analytics to effectively manage, process, and analyze data from disparate sources and enable real-time decision making.
  • Mobile technology solutions from SAP empower agents and brokers to productively engage with customers anytime, anywhere and give customers immediate access to payments, claims status, and policy information.
  • SAP HANA Cloud Platform enables customers to build new apps or extend and customize existing ones with managed and subscription-based services. Cloud solutions from SAP provide the ability to move nonstrategic functions onto low-cost and low-risk platforms while helping to ensure security and integration across enterprise-wide business processes.
  • For enhanced customer experiences, SAP Hybris Customer Experience, SAP Hybris Marketing, and SAP Hybris Commerce software provide insurers with a comprehensive customer-centric toolbox. With these innovative applications, insurers can not only offer existing customers a better user experience, but they can also use Big Data to find and attract new customers as well.
  • In addition, with SAP Fiori user experience (UX), people can have a personalized, responsive, and modern experience with SAP solutions across all devices and applications. 


For insurers that want to make the most of the IoT and the connected home, SAP offers a co-innovation model that can help kick-start a smart insurance solution. This initiative includes a design thinking workshop for business innovation that will help insurers explore the broad potential of the IoT and smart devices. For instance, working with SAP services, an insurer could create and test a product in a specific market segment and then expand its offerings from there.


To achieve greater operational efficiency and enhanced customer engagement, kick start your program today by visiting http://discover.sap.com/digital-insurance. Also, please check out our connected home video demo.

You can follow me on Twitter @Karsten_Fiolka to keep up with the latest innovations in smart insurance solutions.

I am your target demographic. I’m a Millennial, I’m on a good career trajectory with a blue chip company (SAP), and chances are I tick all the boxes of the profile your marketing department is looking to attract as a customer. So I’m going to tell you what I want – as a consumer - from my bank, insurance company and financial services providers. Plus a few of the things I don’t want. Ready?

I may tick all of your demographic boxes, but I’m more than an age bracket. Treat me as an individual. I’m in the exploration phase of my life. I’ve lived in Dubai, Singapore and I’m now an ex-pat living in South Africa. I’ll probably try another one or two countries before I decide where I’m going to make my permanent home. I love shopping, going to the gym, I can initiate a conversation with just about anyone, and I have a great zest for life. I try to learn one new thing every day – from sky diving to Zentangle.

My bank is none of these things. In fact, we don’t really know each other. I’ve not stepped foot in a branch for almost three years – and that was only to set up my account. I do pretty much everything online. You would think that my ‘digital footprint’ and spending behaviour would theoretically make it quite easy for my bank to personalise and tailor their interactions with me. But they don’t.

They make me go through the same cumbersome processes time and again because their different departments are still working in silos – it doesn’t seem like they talk to each other either, let alone me as an individual. When I travel, I have to call one department to get my debit card set up for international transactions, and then I have to hang up and re-dial their credit card department and go through all of my security details again because they don’t answer internally transferred calls.

Plus as an ex-pat, I sometimes find myself having to give the same information on different forms for different departments over and over again. It’s horrifically disintegrated. Yes, I can do basic banking online, but there’s no real added value, just a series of clumsy interactions when I have to deal with different divisions of the bank.

My insurance company on the other hand is a completely different story. They add value in more ways than one. They give me a twenty-five per cent discount on workout clothes at certain stores. That’s why I buy my workout gear there. They refund money back into my bank account when I buy fruits and vegetables at a certain supermarket. That’s why I do my weekly shopping there. They know I belong to a gym and because, they have a vested interest in my health, they reward me for my healthy habits and lifestyle with membership discounts.

Likewise, my friend’s insurance company acknowledges that the value of a car decreases every month, so she pays a slightly lower premium each month. All of these things may not add up to huge amounts, but these insurance providers are mapping their services to our lifestyles with both context and relevance.

I think these types of collaboration – insurance companies, supermarkets, gyms and clothing retailers – will become much more prevalent. As a consumer, I certainly want them to. I’m all in favour of more collaboration between non-traditional partners teaming up to be part of the daily ecosystem that I engage with day to day. I don’t stop being me when I switch from working to shopping to travelling so why can’t the many different suppliers in my life find the common ground between them in having me as their customer?

My bank doesn’t need to know how I take my coffee. It just needs to tailor its services to me as an individual consumer, not an eleven digit account number.

Learn more about how to become an Insurer of One here and watch the video.

Bhavya Kamaraj is an Industry Value Advisor for SAP South Africa.

Often we were asked to explain which business scenarios can be covered by the FS.PM Group Insurance Addon GIA. In the following blog I want to give you some insight about 3 different scenarios which ar covered by GIA.


We will start with ta simple representation of a group.


Scenario 1: The Master Agreement Group


Scenraio 1 is often used if individuals belongs to a specific group like a company, a worker group, members of a community etc.

In the master policy level the group owner defines an agreement with the insurance company usig special conditions, discounts but also can limit the maximum sum of coverages. So the master agreement will restrict or enhance a given insurance company sales product.

Common examples can be found in health insurance, P&C with discounts for specific groups.

A collective/group contract has individual participants where the individual participant is the premium payer and policy holder.

The participant is fully responsible to maintain his policy within the rules of the collective agreement. There are no dependencies between different individual policies other than that they make use of the same master agreement. In a quotation process only the premium for the individual participant is relevant.


This  indicates a classic group business. As soon as a new business will be created for an individual policy holder, directly in the creation process the link to the existing master policy will be established. All maintained default values from the master policy will be defaulted to the new individual policy.

With the GIA feateares Move-In and Move-Out, at any time slave policies can leave the group and will be continued under the same policy number. Insurance company can decide if master agreement conditions remain untouched or have to be changed. Aso in a move-in business process, the policy can be changed using the new master agreements. GIA offeres a bunch of mass BTX capabilities to support any kind of mass changes.

Scenario 2: Real Group Insurance

Scenario 1 can be seen as a pure bracket of a huge number of individual policies. In scenario 2 the benefits of GIA will be moved into the processing focus.

This type of insurance products is often described as a pension plan for employees or also can be used for car fleets.

This sounds strange from a first view, but GIA a a generic concept to work with a master-slave concept.


Examples of Business Requirements:

  • A collective master policy contract with individual participants where the participant has his own policy and can be premium payer (full or partial premium).
  • The contractor of the collectivity (e.g. the employer, key account) also has a (collective) policy and can also be premium payer (partial premium) (e.g. a pension agreement, fleet discount).
  • The dependency over the policies goes further than in scenario 1.
  • The total premium is part of the agreement and is administrated on the collective policy. In the quotation process we can calculate the total premium (this is the sum of the premium of all individual participants) at once.

GIA will implement the above requirements with the following solution approach:

Create a sample application with an explicit name that indicated the master agreement. The sample application will be maintained in full. This includes all discounts, surcharges etc that is needed to be proposed in new business for individual participant policies. In case you want to create a pension group, just create a sample application for your sales product "Pension"

As a next step you create a master policy. Select the a master policy template that will influence the design and features of the master policy level. At the beginning please use the default values GIA offers in setup. Later on you can change the features.


As soon as you are in the master policy, you will be able to define settings that influence the master policy in their behavior.

  • Supress Correspondence
  • Deactivate risk assessments
  • Default policy holder
  • etc


Furthermore from the master policy level you can trigger a mass correspondence. But the most important step is assigning a valid policy holder /

policy contractor for the whole group. This will have an impact on collection process.


Up to now we have just some high level configurations made for the master policy. From a logical point of you, you can directly start assigning slave policies to the master policy. But There was a reason to have created the sample application at the beginning.

In the view "Sample application" you will be able to assign as many sample applications as you need.


In our example we have only one sample application for a pension product of the members SAP employees. This sound like a "Plan". Plans ofen used in insurance business and indicates a special agreement for a special insured object attribute.

We recommend here to define as many sample applications as you have logical "plans"

e.g. define different pension plans for

  • employees
  • managers
  • employees with family
  • etc


You will have full flexibility and freedom to design your master policy and the correpsonding special policy attributes

The sample applications were designed to save you time in mainteance of policy. It shall not be used to define hierachy grouping aspects. Every sample application must have a difference.


An alternative to this implementation approach is using a complete IFBC sales product. In most cases you wull have only one sales product for pensions. If you want to create a differentiator for a key account, it can be covered with sample applications. In case the difference is so huge, you can copy the sales product in IFBC from "Pension Common" to "Pension for Key Account 1". In the past this was a horrible effort of work.

This problem is solved using the new "Simplified product Deployment" tool (SPD) thats able to copy full sales products in a fancy way.


Premium payer distribution is also a special functionality of GIA. It resues a core functionality of FS-CD to make the collection possible.


For every master policy you define a "Broker" bsuiness partner and a Broker Insurance Object. This might be crazy but behind is a real nice feature to resue the FS-CD broker cpollection feature in a master policy behavior. On master policy level you define also a distribution of premium payer. In the given example the Company/Key account pays 40% of the premium and the individual policy holder the remaining 60%. At the moment we offer a distribution of percentage level to establish the feature. Any other distribution schema might be possible.


Correspondence will be managed centrally on master policy.


All other processes like the creation of new business remains untouched. This is the man key benefit of GIA to avoid any impact on as is user experience and data processing but adding a bunch of convinience feature around.

We know that group business is a mass business and often managed with excle spreadsheets. GIA offers a list of APIs to make processes mass enabled.

There are some sample repoirts with excel file upload capabilities to leverage the as is process flow from excel upload to final slave policies.


Scenario 2: Subcase: Salary Increase and impact on existing pension contracts


Let assume you have a working master policy with hindreds of slave policies already created. You key account repirts you a salary increase of 2% for a subset of employees. How are you able to handle it?

Based on the fact the premium depends on the salary, with the help of a mass selection you will be able to find all premiums with a given old value and you can create a "GIA Result Set" A result set is a subset of policies under a given master policy with free selected attributes.



Execute now a masschange for a master policy and reuse the prevously defined result set. In the next step execute the mass BTX Benefit/Premium offered as a GIA feature.



And add the new premium value with an increase e.g by 2%.  Save and execute and all salve policies will be updated in background.

Of course simulation etc as a usual FS-PM feature is possible.


Scenario 3: The company pays my premium

This is a very common insurance scenario ingroup business. Often a company offers for all employees an accidential, medical surgery, travel, baggage or job loss insurance. The best thing here is, the employee is not involved in the whoile process and in most cases the employee has not tp pay any premium. In health business sometime a medical checkup is needed. But let's focus on the common view.



  • A collective contract where the individual participants are only insured (premium relevant) objects.
  • The participants don’t pay premium and don’t have their own policy (in a functional way, in a technical way the have their on policy, so a claim per participant is possible).
  • The insured persons are only informed for being a part of the collective contract as an insured person (e.g. collective disability insurance).
  • In the quotation process we can also calculate the premium with all the participants as insured objects, at once!

So the fact is we have named insured objects. GIA is representing this scenario as the common scenario with special setting on the master policy level. In most areas it is the same as the scenario 2.

We will start using a sample application or an own IFBC product for a key account.

In the creation process of the master policy there are some remarkable changes to be made.


  1. Supress of correspondence is activated. So the individual policies will not receive any documents
  2. The policy holder of the master poolicy  is default as owner of the individual policies
  3. Broker Collection is active with 100% on policy holder


and finally this will result in the following implementation on the slave policies.

  1. Policyholder is the employer/key account/company
  2. Premium payer will be the employer/key account/company
  3. Insured object/person will be the employee



Group Insurance Addon 1.0 offers all function features to cover all group related business on a simple and impact free way of integration.

Avoid customer specific enhancements and trim your processes to be flexible in the future.

GIA was designed to make a disruptive change how group products from pension to fleet can be implemented without the need to re-implement any legacy insurance solution.

GIA 1.1 is planned to be released in April 2017 with great new features, new capabilities and lesson learned from ongoing implementations.

Group Insurance Addon is one of the first products of the Next Generation Insurance Platform leveraging the goals simplicity, smart insurance and digitalization.

Claims 2 video.png

We are pleased to introduce a new SAP Claims Management video which showcases how insurers can streamline claims-handling workflow to increase efficiency, reduce processing time, and lower loss and expense payout.


See how this flexible solution lets you manage claims adjuster assignments and handle changes to the resource pool to lower risk while keeping customers satisfied. In this demonstration, you’ll see how SAP Claims Management helps insurers:

  • determine availability of claims handling resources
  • easily identify claims and assigned tasks
  • quickly reassign claims and tasks to available handlers


This is an optimized way to quickly (3:47 minutes) and effectively gain an understanding of the value of our Claims Management solution, which helps Insurance companies Run Simple.

Demo videos are constructed based upon the ‘day-in-the-life’ approach to using SAP solutions. 


Enjoy the video and please share your feedback.


Faced with a tough market environment and obliged to comply with an ever-increasing number of new regulations, CFOs of insurance companies are under pressure like never before. Here we will look at their key priorities for 2016, and ways in which SAP is helping them to drive competitive advantage.

The job of an insurance company CFO just got harder. Significant resources are required to manage an increasingly complex regulatory landscape. Companies must ensure compliance with a wave of new regulations and industry standards such as the Solvency II Directive and the International Financial Reporting Standard (IFRS) 4, Phase 2. And with severe – and often legal – penalties for non-compliance, such regulations cannot be taken lightly.

Intensifying competition

Insurance CFOs must also help their companies to work out ways to stay competitive in a difficult market. The low interest rates that followed the financial crisis still linger on, significantly diminishing investment returns. This eats into profits and means that CFOs must focus on efficiency savings to boost the bottom line.

Added to this, in an industry whose business model has changed little in the last few hundred years, globalization and digitization are now forcing  the industry to reimagine the way to do business. While this undoubtedly presents new opportunities, it also brings a threat of new market entrants that intensifies competition in the sector.

Meeting the challenge

Faced with these challenges, most CFOs  have certain key priorities on their agenda for 2016:

1) How can we reduce the cost and risk associated with new financial reporting regulations?

2) How can we  become more cost efficient, while providing more insights that help the business

    to innovate and drive profits? 

3) How can we overcome technological obstacles that get in the way of achieving our goals?

Supporting the CFO agenda


With an extensive software portfolio for the insurance industry, SAP has invested significantly in the development of innovative solutions that help CFOs address these priorities.


Data management is a key area where SAP solutions can help to streamline processes and improve efficiency. Innovative in-memory technology used by the new SAP S/4HANA Finance solution eliminates data redundancies due to data replication and aggregation. This significantly reduces costs and means that staff can run reports in minutes rather than days.

An integrated architecture for finance and risk eliminates redundancies in processes and data across the finance and risk management functions. Meanwhile, SAP provides targeted solutions for key areas, such as helping companies to manage their regulatory obligations for IFRS4 and Solvency II. These targeted solutions can help streamline the organization’s governance management efforts and help to minimize the risk of non-compliance.

In addition, solutions such as the SAP Cost and Revenue Allocation for Financial Products application help CFOs to analyze and understand performance implications of their financial operations. Powered by the SAP HANA platform, this application offers unprecedented insights into costs and revenues across their organization. Watch the video here.

Guiding the business

More and more insurance companies are implementing SAP solutions to help them adopt an integrated approach to finance and risk management. Recent projects range from small, targeted improvements – in data management or visualization, for example – to major multi-year financial transformation projects that include a redesign of processes, data functions, and IT systems.

By leveraging the in-memory technology and integrated finance and risk management architecture provided by SAP solutions, CFOs can simplify and streamline their operations. This helps them to dramatically increase efficiency, minimize risk, and cut costs.

What is clear as we head into 2016 is that insurance company CFOs will play a key role in helping to guide the business through troubled waters ahead. CFOs are becoming a key business partner for other departments, providing better insights and gaining more influence on business decisions.


To find out more about SAP solutions for the insurance sector, visit SAP for Insurance, read the Cost and Revenue Allocation Solution Brief, or connect with me here on LinkedIn.

This is an intricate insight into the Group Insurance Add On to FSPM. GIA aims at being an accelerator to the attainment of the goals of the customers in the Group Insurance space. Let’s take a look at the arenas involved.


Master Policy Enhancement :

This deals with canvas of making the Master Policy Object more meaningful and enhanceable.

Master Policy IBC

Similar to the policy object it will be now possible for the customer to define Master Policy templates. Within the Master Policy ibc the customer can maintain the usual datasets pertaining to the Master Policies and its entities such set the default values, field modifiers, Sales Periods etc. Additionally there is the possibility of bringing in more control structures in form of attributes for the Master Policies. The user can also enable/disable functionalities eg Creditor within the Master Policies created out of the current Master Policy template.  The look and feel is very similar to the Policy IBC.

Master Policy Business Object within its Business Processes


It will now to be possible for the user to maintain a whole new catalogue of entities within the Master Policy business processes. The current deliveries include Commission data, Beneficiary, Clause, Coinsurance, Collection type information, Creditor, Multiple Master Policy Partner, Surcharge/ Discount, Premium Per Piece and Premium Payer Distribution. The user can also choose the target locations within the slave policy for most of these dataset to default. The user has varied control possibilities for this eg Group Dimensions. However the narrative doesn’t end here. GIA 1.0 delivers a technical infrastructure for the customer that simplifies the process of creating an additional barrage of entities within the Master Policies if required. The customer is not required to introduce new table every time there is need for a new functionality. He can focus on the core functionality and its behaviour due to GIAs infrastructure.


Correspondence at the Master Policy level


It will now be possible to do manual and automatic scheduling on the Master Policy level. The user can also do set and so recurring correspondence for the Master Policy. Therefore the customer will be able to send a collated correspondence at the group level itself. Mass Change With GIA a larger set of transactions are available within the mass change business process such as Change Commission Participant, Change Policyholder, Execute Manual Rating, Perform Premium Waiver, Change Creditor, Exclude Coverage etc. Additionally there exists a possibility to retrieve data sets from the connected Master Policies for few of the mass BTXs. The move out and relocation of slaves policies from groups is now mass enabled. Mass Change Log All mass changes that are scheduled are tracked under an identifiable log name. This user can retrieve and view the status of the mass changes being tracked under this log.






This functionality allows the user to create an identifiable subset of policies within a Master Policy group. This is called a result set id. The process of searching and selecting this group can be based upon humongous set of parameters. Due to this the user can execute mass change for a subset of policies within a group. Customers can use this identified group for any process as they desire.


Defaulting of data from the Master Policies to the Slave Policies



There is now a possibility of defaulting data from the Master Policy to the connected member slave policies. This happens during new business, main axis element inclusion and move-in of a member to a new group. As mentioned earlier the user has various possibilities to control this data flow. GIA merely defaults this and does not enforce this.


Group Discount for Master Policy Group



It brings forth a possibility for the user to maintain a Group Discount matrix on the Master Policy. This data can then be used to apply the group discount to the policies within the group based on the number of objects. The semantic meaning of the number of objects is customisable by the user.



File Handling APIs


GIA has provided the base infrastructure in form of APIs to cater to the following scenarios via Excel upload:

  • New business
  • Termination of policies
  • Changes to Policies


An API has been provided to mass release or mass reject open applications of policies within a group.



RFC for Master Policy handling


RFCs has been delivered by GIA to Create, Change and Display Master Policies.


Amidst all the inventory of features from GIA some fundamentals still hold good such as:

  • Master Slave relationship still hold good within the Master Policy and individual policy construct
  • The slave policies still remain the frontal operational object.
  • Changes to the existing members within the group are still a 2 step process



GIA has already managed to gain an impressive footprint with various customers every since its launch. This is due to the value proposition it offers.

It could soon become a necessity to have within the FSPM arena.


We have dwelled upon the principal aspects around GIA. For information please refer to http://help.sap.com/insurance-fspmgia

You can particpate in The Early Adaptor Program of SAP to get a first copy of this Addon. Write an e-mail  to early_knowledge_transfer@sap.com and request the time-limited free access to SAP Learning Hub.


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