Post on 19-Dec-2015
description
SAP For Insurance A focuson Billing and Collections
Robert Schwartz
Industry Principal
SAP 32 Years of Making Businesses Successful
SAP AG in 2004 revenues: $ 10 billion 67,500 installations 20,000 companies run SAP Providing 23 Industry Solutions 38,000 SAP employees 1000+ installations in the Insurance industry
12 million users in 120+ countries team with us to Integrate their business processes Extend their competitive capabilities Get a better return on information at a lower total cost of ownership
Industry Leader Leading provider of business process industry solutions 350+ insurance customers; 20 plus in North America $1B in Research and Development per year 8,000 developers; 800+ focused on insurance
SAP for Insurance
Business Partner
Policy
Management General Ledger
Controlling
SupplierRelationship
Mgmt
Claims
Management
Financial Asset ManagementProcurement
Commissions
Collections & Disbursements
Product Management
Claims
Handling
Customer
Service
Acquisition
and sales
Marketing
Management
Reinsurance
Projects, etc
Human Capital Management
Strategic Enterprise Management Business Information Warehouse
MDM PortalX-Apps X-i BI KMBusiness Process
Mgt Mobile, etc
Financial
Strategy
Operational
Billing &Collections
Governance
ChangeManagement
Capabilities
What billing and collection issues are insurersfacing?
Billing and Collections - Current State
OtherProducts
Product
Customer Broker/Agent Individual/GroupOther Business
Partners
Billing andReceivables
System
Customer
System 1 System 2 System 3 System 4 System 5 System 6 Manual System n
Retro PlansP&CWork
Comp.Business
Life FleetCreditLife
ClaimsDeductible
ClaimsSalvage
PremiumAudit
P&C Retro PlansPolicy andContract System
P&C Life Fleet Credit Life Manual OtherProducts
WorkComp
Risk Assessment / Retention Revenue Lift
Working Capital ImprovementOperational EfficiencyImprovements
Policy Services&
Billing
CustomerAcquisition /
Retention
AccountsReceivable Collections
There are four significant benefit opportunities for billing& collections across the application to cash life cycle.
CD
Policy
Claims
Insureds
Broker/AgentsVendors
Claimants
External Adjusters
Litigation
Vendors
Service Providers
ServiceProviders
SAP Collections and Disbursements (CD) controlscash flow to all parties in the entire insurance cycle
Central viewof all cashflowandexpenditures
Minimize expensesassociated withmanagingpayments/collections
ImprovecashflowANDcustomersatisfaction
Centralview ofal lparties
Reinsurance
Commission
. . . .Reinsurers
Retrocessionaires
FS-CD creates an efficient environment that enablescontinuous improvement
Risk Assessment / Retention Revenue Lift
Working Capital ImprovementOperational Efficiency
Policy Services&
Billing
CustomerAcquisition /
Retention
AccountsReceivable Collections
Automated Workflow Task Creation Task Management Task Assignment Management Control
Automated Clearing User Defined Hierarchy Based Criteria Based Configurable Defined by Rules
Access To Information Centralized View of All
Data Manage processing
without interrupting work
Reduced Environment Costs Shared Services Common Platform Reduced Maintenance
Increase the amount collected and decrease the timerequired to collect it
Risk Assessment / Retention Revenue Lift
Working Capital ImprovementOperational Efficiency
Policy Services&
Billing
CustomerAcquisition /
RetentionAccounts
ReceivableCollections
Reduce DPO All payment types supported Electronic bill presentment
and payment Reduce reconciliation
periods/workload throughon-line reconciliation or EDI
Receive cash faster Release cash faster
Improved GL reconciliation
How has billing/payments affected your ability to groworganically or through acquisition?
Risk Assessment / Retention Revenue Lift
Working Capital ImprovementOperational Efficiency
Policy Services&
Billing
CustomerAcquisition /
RetentionAccounts
ReceivableCollections
Increase Speed to Market Tailor billing to Market/Product/State Quickly implement changes to support new markets
(configuration vs. customization) Support payment requirements for new markets
claims, vendors, etcIncrease Value of Acquisitions
Quickly fold acquired business into account structure Minimize disruption to acquired customers
Billing may not be a differentiator but it generates themost complaints
Risk Assessment / Retention Revenue Lift
Working Capital ImprovementOperational Efficiency
Policy Services&
Billing
CustomerAcquisition /
RetentionAccounts
ReceivableCollections
Interaction Call Center On-line EDI
Billing Support Account Current (Broker/MGA) Account Receivable (Agent) Direct Account Level Billing
Payment Support EFT ACH Check Credit Card Account Sweeps
Reduce Negative EquityRisk
State Sensitive BillingStructures
Credit Scoring
Reducing Negative Equity
CD
Late orUncollectiblePremium
ClaimsPayments
Net AccountProcessing
CD helps insurers manage cashflow from a singlesource .
OtherProducts
Product
Customer Broker/Agent Individual/GroupOther Business
Partners
FS-CD
Customer
LossSensitiveP&C
WorkComp.
BusinessLife
VehicleContracts
CreditLife
ClaimsDeductible
ClaimsSalvage
PremiumAudit
P&C Loss SensitivePolicy andContract System
P&C Life Vehicle Credit Life Manual OtherProducts
WorkComp
Accommodates ALL billing& collections requirements
in a single solution
Provides a single source forALL premium information
Provides a policy / premium subledger in coordination with the GL
Removes constraints withthe batch windows
Consolidates processing ofpayments reducing cycle time
CD
Portal
Fully Integrated
And enables a flexible environment
Insured Group Agent/Broker Third Party
Call Center
SAP Collections & Disbursements
Personal Lines
CommercialLines
SpecialtyLines
Financials
Fully IntegratedDis
trib
uti
on
&
Ac
ce
ss
Co
reP
roc
essin
g
Syste
ms
User Selected
Channel
Mail EDI
Collections Offerings Solution Set (priorities)
XXXCombined insurance & technologypartner experience
XXXScalability
XXLeverage SAPs technology capabilities
XXReduce amount of interfaces
XXLeverage other investments
XXSupport regulatory requirements
XXXEnable continuous improvement
XSupport new market growth
XXReduce negative equity
XEnable cross selling / retentionactivities
XXAccount processing consolidated bill
XXSupport shared services
MitigateRisk
LowerExpenses
BusinessStrategy
Performance
14,200,000 per hour for transfer of posting data (20 apps, 320 jobs)
3,600,000 per hour for posting run (7 apps, 112 jobs)
8,900,000 per hour for correspondence (6 apps, 96 jobs)
Results of a high-end performance test.
Austria andSwitzerland(9): Generali, A Wiener St_dtische,A WGKK Mobiliar, CH Swiss Life, CH Zuerich FS, CH Winterthur, CH SUVA, CH PAX, CH
Americas (9): Allstate ADP Tax Services Great West Life American Re CincinnatiFinancials OSDE, Argentina MONY Life Employers ReAIG Rest of Europe (15):
Cesk_ poji_tovna, CES Vseobecna zdravotnapoistovna BNL Vita, Italy INA, Italy ITAS, Italy Assimoco, Italy Toro Assicurazioni, Italy AXA, Portugal Folksam, Sweden Generali, Netherlands ING, Netherlands Interpolis, Netherlands KBC, Belgium Mapfre, Spain Generali, France
UK (2): Standard LifeInternational AA Centrica
Germany (26): Berlinische Leben Zusatzversorgungskasse MLP Finanzdienstleistung Generali M_nchen Provinzial Kiel VersicherungskammerBayern Bruderhilfe Condor Versicherung Sparkassenvers. BW Sparkassenvers. Wiesbaden AOK, Bonn Karlsruher Versicherungen Barmer Ersatzkasse Inter Versicherungen Gerling Konzern Deutscher Ring Mannheimer Versicherung Munich Re VBL BVV VW Financial Services _VB ARAG Hannover R_ckversicherung Alte Leipziger TDS Informationstechnologie
FS-CD: Customers Worldwide - live
Total: 75, live 30
Australia:Mercantile Mutual Holding
SAP solutions are designed for international use
Arabic
Bulgarian
Chinese (Simplified)
Chinese (Traditional)
Croatian
Czech
Danish
Dutch
English
Finnish
French
German
Greek
Hebrew
Hungarian
Italian
Japanese
Korean
Norwegian
Polish
Portuguese
Romanian
Russian
Serbian
Slovak
Slovenian
Spanish
Swedish
Thai
Turkish
CD Implementations
SAP supports 30 languages, from a single instance:
Time
Cap
abili
ty
Carrier decisions have produced a climate that fostersthe continued creation of systems akin to the old"legacy" systems.
They create systems that behave as if they werecreated years ago, being inflexible or dealing only withthe "siloed" system of which they are part.
Carriers need to curtail the creation of futuregenerations of systems that rapidly lose their ability toadapt to new conditions. This means placingemphasis on the development and execution offlexible and open architectures for both ITinfrastructure and development methodologies.
Source: TowerGroup 2/8/2004
NetWeaver delivers significant ROI and TCO Reductions: BG Group: 281% ROI; 43% TCO Reduction (5 yrs) Goodyear/Dunlop: 308% ROI; 25% TCO Reduction
Source: IDC Case Studies
SAP Claims SAP Claims
Collections/Disb
SAP Claims
Collections/Disb
SAP Claims
Collections/Disb
Reinsurance Reinsurance
Policy / UW
SAP Business Warehouse, NetWeaver / .NET Integration
LegacyCapabilities(e.g., Policy,
UW)
LegacyCapabilities
LegacyCapabilities(e.g., Policy,
UW)
LegacyCapabilities
Legacy Technology Stack
Point Solutions
PointSolutions
PointSolutions
Point Solutions
TCO
According to Gartner Research study of TCO - December 12, 2002: Productivity of bought applications tends to exceed that of built
applications by more than 3:1 Bought Applications cost 40% less than built applications
Individual SAP products improve effectiveness and reducecosts. Multiple SAP products dramatically improves TCO
Implementation Methodology
Implementation Approach ASAP Driven
Define customersolution based on
SAP processes
ProjectPreparation
BusinessBlueprint Configuration
ASAP Driven
Project Management
Project Administration
CustomerDevelopment
Configure processes Test processes
Training
Define project
Set up system landscape
Final Preparation and Go Live
ProjectPreparation Final
Preparation
SAP QualityReview
ProjectPreparation
ProjectPreparation
SAP QualityReview
BlueprintBlueprint
RealizationRealization
FinalPreparation
FinalPreparation Go Live &
SupportGo Live &Support
RealizationGo Live &SupportBusiness
Blueprint
ContinuousChange
Implementation Monitoring SAP Services
SAP QualityReview
SAP QualityReview
SAP GoingLiveChecks
SAP GoingLiveChecks
SAP EarlyWatch Alert
SAP SolutionManager
Schedules & Tasks
Project Preparation Define project team and roles
Project Charter and Standards
High-level blueprint and technical requirements document
Training plan
Proof of Concept Install hardware and software
Bring up sandbox
Limited proof of concept configuration
Limited interfaces to policy and other systems
Business Blueprint Complete planning and design
Define business processes, master data, org structure, reports, forms, etc.
Confirmation of project scope
Schedules & Tasks
Realization Bring up develop, testing, QA, production environments
Configuration and unit testing
Documented BPPs
Interface development and testing
Formal transport procedures
Final Preparation Production plan
Cutover plan
System testing
End user training
Documentation
Go-Live & Support Help desk
CSN resolution