SAP FINANCIALS FOR INSURANCEfm.sap.com/pdf/9625/SAP - Financials for Insurance_Michael... · FI-AA...

DISCOVER THE POTENTIAL | SAP AMERICAS INSURANCE FORUM | NOVEMBER 12-14, 2007 | MIAMI, FLORIDA

Michael Volanoski / Paul Farrell

SAP Consulting

SAP FINANCIALS SAP FINANCIALS FOR INSURANCEFOR INSURANCE


Overview of SAP Financials for Insurance

Value Proposition

Content of SAP Financials for Insurance

Future Plans: Integration Scenarios FS-CD, FS-CM, etc.


Agenda


SAP Financials for Insurance

SAP Financials for Insurance is a Packaged Solution based on SAPERP 6.0 with Best Practices for accelerated and efficient implementation for insurance companies.

SAP Financials for Insurance

Packaged Solution

Customer Expectations

Cost Pressure

PrimaryInsuranceCompanies

Business RequirementsLegal requirements



Value Proposition




Agenda


Value Proposition

Help you:

Improve Financial Transparency

Enhance Risk and Control

Manage Growth

Drive Operational Efficiency

Added Value of Packaged Solution!


Key Value Drivers

KeyBenefits

4. Operational Efficiency

4. Operational Efficiency

Reduced cost of service through standardization and automationImprove efficiency by streamlining core and back office insurance processesImprove integration across the organizationLower technology delivery costs by leveraging common platforms

1. Compliance and Financial Transparency

1. Compliance and Financial Transparency

2. Risk and Control 2. Risk and Control Improve early warning of risks and trendsEnlarge confidence in reported data and forecastProvide full audit trailReplace outdated legacy systems

Reduce cost of compliance to SEC, NAIC and SOX requirementsReduce financial reconciliationIncrease transparency and reduce monthly closing cyclesReduce and/or eliminate manual accounting tasks and duplicate data entries

3. Competition and Growth

3. Competition and Growth

Support business growth through better analyticsScalable design to quickly add new businessReal-time financial information for better decision making and a competitive edge

Key Benefits to Support Customer Objectives

SAP Financials for Insurance Value Proposition


Tangible Benefits

Peer Company

Risk and Control Operational Efficiency

Peer Company Peer Company

* Source: SAP Customer Experiences

Tangible Benefits* % Impact Tangible Benefits* %

Impact Tangible Benefits* % Impact

Financial Transparency

5-10% Improved reporting

10-15%

Enhanced closing and calculation times

5-9% Improved financials staffing

35-60% Improved consolidation

15-45% Improved budgeting

Operating Costs

20-35%

Reduction of post-go-live corrections

5 –15%

TCO improvement (over 3 years)

30-40%

Reduction of project risks

Risk Management

Our customers have achieved significant benefits using SAP

15-25% Reduction of process costs

10-20% Reduction in training costs

20-40%

Time saving thanks to elimination of non-value added tasks

20-30%

Reduction of operating costs due to faster and better decision-making based on accurate on-time information

Operating Costs



Value Proposition




Agenda


SAP Financials for Insurance Packaged Solution

SAP ERP Packaged SolutionSAP ERP Packaged Solution

++

Fast, Proven & Reliable

Lower Risk Reduced Timeline

SAP ERPPackagedSolution

Quick ROISAP’s next generation Enterprise Resource Planning solution Powered by SAP NetWeaverDesigned for all industriesFully integrated within the SAP Business SuiteEnhanced with insurance-specific configuration sets

Best-in-class industry expertise built into SAP ERPPredefined end-to-end processesIndustry-specific documentationPreconfigured System

Preconfiguration settingsMaster DataConfiguration documentation

++Deep insurance industry knowledgeFocus on value creation and risk reductionDelivery excellence

Implementation

SAP ERP FinancialsSAP ERP Financials

Business TemplateBusiness Template

ServicesServices


MarketingManagement

SalesManagement

CustomerService

Mobile Field Enablement

Collections & Disbursements

Commissions

Reinsurance

Financial Asset Management

Product Management

Policy Management

ClaimsManagement

Business Partner

MDM XApps XI PortalBusiness Process

ManagementBI KM Mobile,

etc

Strategic Enterprise Management Business Information Warehouse

Analytics

Insurance Core Applications

Insight DrivenSales & Service

NetWeaver

SAP Financials for Insurance focusesfirst on Financial Accounting, Management Accounting and Reporting


Non-Core BusinessSubledger AP/AR

Fixed Assets

OverheadManagementProfitability

Analysis

Business SupportApplications

General Ledger



External SystemsExternal Systems

Business Warehouse (BW)

Policies

Claims

Commissions

Reinsurance Col

lect

ions

& D

isbu

rsem

ent GLGeneral LedgerFI-AR

Accounts Receivables

FI-APAccounts Payables

COControlling

FI-AA Asset Accounting

STATGAAP TAX

SAP Financials for Insurance – Solution Architecture

Business Explorer (BEx)

Profitability Analysis

InsuranceSpecific

Dimensions

STAT Accounts

Insurance-Specific

Dimensions

OverheadManagement

CO-OM

GAAP Accounts

CO-PATAX

Accounts

Human Resource

Investments

Real Estate


Rich Content Delivered for Insurance

Line of Business – P&C, Life

Insurance Chart of Accounts

Organization Structures & Hierarchies

Legal Entities, LOBs, Segments

Flex GL (Parallel Accounting GAAP & STAT)

Sub-ledgers A/P, A/R, and Fixed Assets

Accrual Engine

Banks Accounting (Incoming & Outgoing Payments)

Sample Management Reports (Profitablity Analysis)

Cost Accounting & Cost Allocation

Real-time Reconciliation Postings to General Ledger

Statutory Formatter

Excel Upload

Sample Authorization Roles


SolutionSolution

CoverageCoverageThe insurance Business Blueprint template covers ready-to-use industry standard processes:

Predefined processes for Financial Accounting Predefined processes for Management AccountingReporting

Customer Requirements

Customer Requirements

Customer-specific requirements that are not contained in the SAP Financials for Insurance solution can be tailored to individual customer needs

Content of SAP Financialsfor Insurance

SAP Financials for Insurance solution for the insurance industry contains:

Insurance-specific Business Blueprint template Proven rapid implementation methodology/strategyImplementation concept based on SAP ERP 6.0


Best-practice parallel accounting architecture:Using parallel accountsCommon, GAAP, and STATFull-Full/Delta posting logic

Sample insurance chart of accounts with placeholders for Common/GAAP/STAT accountsPredefined dimensions for insurance-specific reportingClosing process based on fast close Preconfigured customizing:

– Account groups – Document types, number ranges– Document splitting

FINANCIAL ACCOUNTING FINANCIAL ACCOUNTING


Accounting Process Architecture

Accounting Process Architecture

General LedgerGeneral Ledger


Includes non-core insurance business sub-ledgersVendor invoicingBusiness transactions with employees(travel expenses, etc.)Settlement of other payables and receivables

Closing processes: account balances, intercompany settlement

Pre-defined Asset Classes. SAP Financials for Insurance provides predefined Customizing:

Asset classes for tangible and intangible assetsAsset classes for GAAP and STAT reporting (admitted/non-admitted assets) GAAP and TAX depreciation methods/keysAutomatic Account determination


Sub-legers A/R and A/PSub-legers A/R and A/P

Sub-ledger AASub-ledger AA

FINANCIAL ACCOUNTING FINANCIAL ACCOUNTING


Basic cost center structureCost allocation process (incl. demo cycles)Financial cost distribution to functional areas andline of businessReconciliation postings to general ledger

Pre-defined profitability dimensionsCost allocation process (incl. demo cycles)Flexible reporting on accounts and profitability dimension combinations


“This is an extremely challenging time for the accounting profession and the nation's financial reporting system, but these challenges provide a fantastic opportunity to improve financial disclosure and help rebuild investor confidence.”

Donald T. Nicolaisen SEC Chief Accountant (US Security and Exchange Commission)

Overhead Management

Overhead Management



MANAGEMENT ACCOUNTING MANAGEMENT ACCOUNTING


Deliverables of SAP Financialsfor Insurance

ConfigurationGuide

Guided Procedures

ImplementationTools

Accelerators

Business Scenarios Blueprint

PreconfiguredContent


Reduced implementation effort by 25–40% Reduced project duration by 25–40%

Traditional Implementation vs SAP Financials for Insurance

BusinessBlueprint

Realization

Traditional ERP Project

ProjectPreparation Realization Go-live

Preparation

Project Timeline

Bus. Blueprint Gaps

SAP Financials for Insurance – Packaged Solution

ProjectPreparation

Go-live Preparation

Impact on Implementation Time and Efforts


SAP Consultant Service Offering

Fixed Days

SAP ERP ApplicationLicense Package

Powered bySAP NetWeaverTM

BusinessBlueprint

Part of the

Service Offering! Delivered by SAP Consulting or Partner

Complete Turnkey Offering

SAP Financials for Insurance provides the SAP ERP application (Financial Management & Analytics), the technical platform, Business Excellence and ServicesImplementation with fixed scope in a fixed time-frameEnsuring rapid Return of Investment (ROI) and lower risk

SAP Financials for Insurance Provides a Complete Turnkey Offering


SAP Value Proposition as Prime Integrator

SAP Customer Services NetworkSAP Consulting

More than 10,000 consultants worldwideExpertise ranging from business process and strategy consulting to implementation-related engagements

SAP Managed ServicesApplication Hosting services, SAP can manage a company’s entire application infrastructure. Including data center facility, power, hardware, telecom, DB/OS & basis administration. Application Management Services (AMS) establishes a long-term custodial relationship with SAP delivering post-implementation application support, enhancements and also assisting customers with strategic issues surrounding their SAP applications.

SAP Active Global Support24x7 global support, guaranteed response time with on-site support provided as a premium service

SAP EducationThird-largest IT-training organization in the world with 200,000+ students trained annuallyClasses offered in 15 languages

SAP Global Custom Development ServicesDirect access to premier custom-development resourcesTailored solutions that are synchronized with SAP’s release strategy

Global Partner NetworkMore than 120,000 consultants worldwide



Value Proposition




Agenda


Global Master TemplateSAP ERP 2006Insurance Business Blueprint Template Financial & Management Accounting Documentation Service Offering

Phase 1US Specific TemplateSAP ERP 2006US Preconfigured ClientUS specific Insurance Business Template Financial & Management AccountingUS Specific Service Offering

Phase 2

Additional enhancements and integrationSAP ERP 2006Enhancements to FI BW, SEMIntegration with first preconfigured Core Insurance Solution SAP FS-CDProcurement ManagementService Offering

Phase 3

SAP Financials for Insurance Packaged Solution

SAP FI Phase Plan

Future Outlook …next steps…20082006 2007


Contacts

Michael VolanoskiSAP Consulting3999 West Chester PikeNewtown Square, PA 19073

T 610.661-1000M [email protected]

Paul FarrellSAP ConsultingFive Westbrook Corporate Plaza, Suite 1000Chicago, IL 60154

T 708.836-1513M [email protected]

SAP FINANCIALS FOR INSURANCEfm.sap.com/pdf/9625/SAP - Financials for Insurance_Michael... · FI-AA...

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