SAP FOR LIFE INSURANCE DISCOVER THE POTENTIAL SAP AMERICAS INSURANCE FORUM NOVEMBER 12-14, 2007 MIAMI, FLORIDA Robert Schwartz / Anja Volkenandt
Agenda SAP for Life Insurance Companies Value Proposition Demo
Key Issues for Life Insurance Companies key technology elements [of policy administration] straight through processing flexible, tools-based configuration Insurers require flexible systems to manage increasingly complex compensations models. Celent Model Carrier, January 2007 Case Studies of Effective, Technology Usage in Insurance carriers need to find a way to differentiate themselves and thus create a competitive edge. Accomplishing this goal requires the use of technology to save time and administration overhead. TowerGroup, June 2007 Annuity Processing: Still a Bastion of Inefficency need for greater industry oversight and transparency to establish replicable enterprise controls for more effective data integration and replicable processes. New product drives sales Datamonitor, Q1 2007 Global Insurance Technology Business Update
Value Chain for Life Insurance Primary Activities Product Development Sales and Distribution New Business/ Underwriting Customer Service Life Claims & Annuity Benefits Investment & Risk Management Support Activities Business Partner Management Billing and Payments Reinsurance, Actuarial, Document Management Human Resources, Financials, Treasury, Procurement, Legal and Compliance Technology Platform SAP Offerings Certified SAP Partners
Insurance Business Objects Primary Product Development Sales and Distribution New Business/ Underwriting Customer Service Life Claims & Annuity Benefits Investment & Risk Management Support Business Partner Management Billing and Payments Reinsurance, Actuarial, Document Management Human Resources, Financials, Treasury, Procurement, Legal and Compliance Technology Platform Campaign Illustration Policy Claim Treaty Sub-ledger GL Account Lead Application Product Sub-claim Commission Contract Invoice Cost Center Opportunity Individual General Accounts Reserves Payment Product Type Prospect Group Separate Accounts Bank Account Premium Type Organization Coverage Type
New Business Individual Life Primary Analyze Needs Support Product Development Create Initial Illustration Sales and Distribution New Business/ Underwriting Customer Service Create Issue Underwrite Bind Application Policy Business Partner Management Billing and Payments Reinsurance, Actuarial, Document Management Life Claims & Annuity Benefits Human Resources, Financials, Treasury, Procurement, Legal and Compliance Technology Platform Create Invoice Process Payment Investment & Risk Management Pay Commission Campaign Illustration Policy Claim Treaty Sub-ledger GL Account Lead Application Product Sub-claim Commission Contract Invoice Cost Center Opportunity Individual General Accounts Reserves Payment Product Type Prospect Group Separate Accounts Bank Account Premium Type Organization Coverage Type
New Business Individual Life Primary Support Campaign Underwriting Product Development Issue Policy Illustration Sales and Distribution Policy Commission New Business/ Underwriting Commission Contract Claim Business Partner Customer Service Issue Policy Business Partner Management Commission Billing and Payments Case Reinsurance, Actuarial, Document Management Treaty Life Claims & Annuity Benefits Human Resources, Financials, Treasury, Procurement, Participants Legal and Compliance Technology Platform Determination Commissions Calculation Sub-ledger Payment Investment & Risk Management Pay Commission GL Account Lead Application Post commission Productresults Sub-claim Commission Contract Invoice Cost Center Opportunity Prospect Individual Group General Calculate Target Accounts Agreement and Bonuses Separate Accounts Settlement Reserves Payment Bank Account Product Type Premium Type Organization Correspondence Coverage Type Payout commissions
Life Insurance Products Templates Fixed and Term Variable Annuity Term Life Whole Life Universal Life Accidental Death Occupational Disability Variable Life Variable Universal Life Immediate Annuity Deferred Annuity Enhancement of sample products for a faster implementation.
Continuous Development and Improvement 2005 2006 2007 2008 2008 + FS-PM 2.0 3.0 3.1 4.0 5.0 * Basis Life Fixed & Term Variable Further Internationalization Foundation / 1. Version Focus Enhancements / cont. Impr. Standard Release / Shipment Beta Shipment to Development Partner *Note: Release Plan may change without prior notice
SAP for Life Insurance Analytics Sales & Distribution Agent Portal Sales Management Commissions Customer Service Illustration Core Business Product Development New Business/Underwriting Policy Administration Billing & Payments Reinsurance Investment & Risk Management Life Claims & Annuity Benefits Back Office Human Resources Financials Treasury Procurement Legal & Compliance Business Partner Managment Technology Platform
ESOA is at the Core of SAP s Vision Role-specific Optimization Flexibility Front-end and multichannel Collaboration and process management Portal Desktop Mobile Forms Voice Enterprise Services Repository Stability Business functionality and enterprise services SAP: Generic and FS-specific Components
ESOA Become the Common Language Enterprise Services establish a common and stable service contract between business and IT, while allowing "strategic decoupling" Business Strategy Business Intent Create Illustration Process New Business Underwrite Bind & Issue IT Implementation Create_Application Check_Customer Check_Risk Create_Policy Create_Reserve IT Strategy (Optimize)
Agenda SAP for Life Insurance Companies Value Proposition Demo
Value Proposition for Life Insurance Carriers Configurable system Reduce product development cycle time Business Value Increase speed to market Straight through processing Improve data integrity Lower cost of ownership Reduce integration cost Eliminate data redundancies IT Value Reduce maintenance cost Simplify application landscapes Reduce training cost
Life Insurance Companies Run SAP
Value Proposition Conclusion Improved Functional Capability Reduced Total Cost of Ownership (TCO) Future proof Core Systems SAP for life insurance Straight through processing Automation Flexibility SAP has developed applications specifically for the insurance industry, which we believe will enable us to achieve our internal goals and gain a competitive advantage. Mitchell Graye, Executive VP and CFO Great West Life & Annuity Insurance
Agenda SAP for Life Insurance Companies Value Proposition Demo
Demo Policy Administration and Commission Portal Policy Commissions Payment Search policy Inquiry Cash Values Additional Deposit Commissions Calculations Settlement Payout commissions Fund Investment Premium Payment Search policy Inquiry Cash Values
Contacts Anja Volkenandt IBU Insurance Robert Schwartz Industry Principal SAP AG Großer Grasbrook 17 D-20457 Hamburg M +49 170 8555859 E anja.volkenandt@sap.com www.sap.com SAP America 3999 West Chester Pike Newtown Square, PA 19073 T 860-794-6440 E robert.schwartz@sap.com www.sap.com