SAP for Insurance: Business Processes
The SAP for Insurance solution portfolio integrates your core insurance processes with back-office operations and customer-facing functions. It empowers you to deliver a complete set of innovative insurance products and a high level of customer service. So you can attain operational visibility and control, optimize customer relationships, and achieve profitability and growth.
SAP solutions support the core business processes of the insurance industry, including:
- Sales force management - Manage distribution channels, manage commissions, collaborate with partners, and capture new business.
- Claims handling and fulfillment - Capture claims information, evaluate claims, integrate service providers, and disburse payments.
- Treaty and facultative reinsurance administration - Forecast relevant figures for treaties, capture quotation data, and define parameters and conditions.
- Financial asset management - Administer investment portfolios, handle straight-through processing of financial deals and positions, and analyze portfolio performance, market exposure, and more.
- Collections and disbursements - Initiate and process premium billing, incoming and outgoing payments, dunning, and financial-closing operations.
SAP for Insurance covers the key activities involved in sales force management, including:
- Incentive design and configuration - SAP solutions allow you to define and maintain your sales organization. They help you identify and manage the people responsible for organizational units and let you map the appropriate management relationships.
- Incentive plan maintenance - SAP solutions enable you to assign sales employees to a sales organization. You can then design a commission contract based on standard agreements or customize it based on specific needs. You can adjust commission contracts or create new ones to reflect changes in product portfolio or channel mix.
- In-force business transferring - You can categorize in-force business based on key criteria, such as region, product, line of business, and customer group, and then assign in-force segments to an agent. You can alter the composition of in-force business and assignments based on business needs.
- Incentive processing - SAP for Insurance enables you to verify sales activities and disburse activity-based remunerations. Each solution in which a transaction takes place is integrated with the commissions solution and reports the activities and results.
SAP for Insurance covers the key activities involved in claims handling and fulfillment, including:
Notice of loss - SAP solutions allow you to capture a claim reported by an insured or another claimant, carry out initial checks, and trigger follow-on processes. You can report the notice of loss through channels such as letter, data medium exchange (DME) record, call center, or the Internet.
Claims fact-checking - With SAP solutions, you can clarify facts related to a claim, validate policies and claims, and determine whether the insurer must pay compensation.
Claims evaluation - SAP solutions give you the tools you need to capture, evaluate, and verify individual items in a claim and then make a compensation statement for all claimants.
Settlement - SAP solutions enable you to settle claims by making payouts to the policyholder or other claimants, providing goods to replace damaged items or delivering services through third parties.
SAP for Insurance covers the key activities involved in treaty and facultative reinsurance administration, including:
Submission - SAP solutions allow you to manage application data during business acquisition. The cedent can receive quotes from reinsurers, and brokers can be included in the process.
Treaty projection - With SAP solutions, you can project treaty data for the treaty period. For example, in the life insurance business, the projected figures could incorporate parameters for mortality, cancellation, and interest.
Underwriting - SAP solutions let you enter the conditions and shares for each partner and, if appropriate, each broker.
Reinsurance allocation - With SAP solutions, you can assign policies to accumulation groups. You can also apply reinsurance programs to policies and accumulation groups or to the primary insurer's portfolio.
Facultative cession processing - After you have applied reinsurance programs, you can establish the facultative cession requirement and make individual cessions.
SAP for Insurance covers the key activities involved in financial asset management, including:
Portfolio management - With SAP solutions, you gain operative control of the funds invested by your company in various portfolios. You have the information you need to make intelligent trading decisions to minimize risk and maximize yield, taking into account investment strategy and liquidity restrictions.
Portfolio accounting - SAP for Insurance enables you to handle valuation and follow-up processing related to portfolio management. You can maintain position-keeping for financial instruments with regard to corporate actions such as interest and dividend payments. You can also manage all subledger and general ledger accounting activities connected to financial investments, including the initial update of financial business and the execution of period-end closing.
SAP for Insurance covers the key activities involved in collections and disbursements, including:
Master data adapting and posting - SAP solutions let you create the master and transaction data required for incoming payments or disbursements initiated internally or made by a customer on the basis of an invoice. You can create open items from the posting data.
Direct debit and credit processing - With SAP solutions, you can process automatic payments through methods such as electronic credit transfers, debit memos, checks, and credit cards. Flexible clearing control lets you process customer-initiated payments.
Returns handling - SAP for Insurance lets you process as returns those debit memos that you have submitted to your bank but that haven't been cashed by the customer. Response can be immediate and rule-based to trigger follow-on processes.
Daily reconciliations - SAP solutions allow you to perform daily reconciliation tasks pertaining to the general ledger. You can consolidate and transfer collections and disbursements data to the general ledger for profitability analysis.
Financial closing - With SAP solutions, you can perform preliminary work for the creation of financial statements. You can prepare monthly, quarterly, and annual financial statements, handling foreign currency valuation, valuation or adjustment of receivables, reclassification of receivables and payables, or deferred revenue postings. You can also reconcile the general ledger and special ledger and prepare data for internal and external auditors