• Save
Business analytics solutions from sap for the insurance industry (july 2011)
Upcoming SlideShare
Loading in...5
×
 

Business analytics solutions from sap for the insurance industry (july 2011)

on

  • 2,523 views

Insurance industry Business analytics use cases

Insurance industry Business analytics use cases

Statistics

Views

Total Views
2,523
Views on SlideShare
2,514
Embed Views
9

Actions

Likes
2
Downloads
0
Comments
0

3 Embeds 9

http://www.linkedin.com 5
http://www.slashdocs.com 3
https://www.linkedin.com 1

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • [Talk track:]Overall message:SAP software helps you deliver differentiated products and services to customers and reduce overall costs and complexity and make optimal business decisions.Making profitable sales via the right channels– sell profitable products and services to customers via the right channel and retain them over the long term Making good decisions and managing risk and compliance – Make optimal business decisions with trusted real-time insight into insurance operations and proactive management of enterprise-wide risk and compliance.Reducing claims and operational costs – Reduce overall costs and complexity by streamlining claims cycle time and using analytics to reduce claims cost inflation.
  • Customer Retention Rate: J D Powers Surveyhttp://www.insurancejournal.com/news/national/2009/04/22/99851.htmLet’s start by discussing what “run better” means for an insurer in today’s challenging marketplace. Here you see some of the key performance indicators (KPIs) that insurance companies track and how they measure their results. “Best-run” insurers are those that perform well across a variety of metrics, including the three you see here . The best in class companies have an expense ratio of 10.8% of premiums , retain more than 95% of their customers and have a combined ratioOf no more than 95%.
  • Wouldn’t you like to have meaning for everyone, everywhere, and at anytime? Whether it is about your customers, products, employees, competition, market, or the world. Regardless of where you sit in an organization, while the context for knowledge is different, the basic set of questions remains the same.As Tom Davenport – well renowned author in this field confirms – all people spend a great deal of time trying to understand:why things happened?what is happening?what will happen in the future?what is the risk if it does or does not happen?and how will I prevent it from happening again or ensure it happens more in the future, and ultimately what is the best course of action?For example … what are your most important functions? Customer? Supply chain management? HR? Finance? (select one or two – depending on the customer response)1. Customer relationship managers need to segment their customers and identify their best ones. They need to understand customer behaviors, predict their customers’ wants and needs, and offer fitting products and promotions. They price products for maximum profitability at levels that they know their customers will pay. Finally, they need to identify the customers at greatest risk of attrition and intervene to try to keep them.2. Human resources managers, need to know about all the people they are hiring or how to retain employees. Just as sports teams need to know the best players, firms need to select valuable employees and identify those who are most likely to depart.3. Finance and accounting managers: Need to determine which factors truly drive financial performance. In this era of instability, financial and other firms need to monitor and reduce risk. Can you imagine the possibility (select a couple that match the areas above)?: --If you could know the minute an acquisition happens as soon as someone blogged about it (finance).--If you could respond immediately to a compliance alert by collaborating instantly with all stakeholders, adjust operations, or plan as necessary and move on BEFORE it becomes a regulatory issue – ultimately preventing fines, public announcements, etc. (finance)-- If you could know the behavior of your customers by understanding their buying habits and doing a simple analysis of the mentions of your product on their Facebook or Twitter account, and then launch a campaign around their needs (customer)-- If you could prevent an oil line from breaking, instantly predict the # of high risk loans in a quarter, be notified when there’s a shift in the economy and the effect on your company for the quarter (finance)-- If you could predict the likelihood of your best talent leaving (HR)Well, this can only happen if we address some of the most critical issues all businesses are faced with.  
  • First – Know Your Business.All of these organizations were able to really know their business because they had:Variety of tools and delivery mechanisms to - Access all relevant information across their business network– anywhere, anytimeTrust in the quality of their information – no duplicate records or unclean dataUnderstanding of information in the context of their industry and role, quickly and easilyA great example of this is Molson Coors.Molson Coors uses business analytics solutions from SAP to receive real time insight into inventory levels and prevent stock out. This means for you – there will always be Molson Coors available in stores when you need it – on a warm summer afternoon, at the beach or at an evening celebration.Second – Decide with ConfidenceAll of these organizations were able to make decisions with confidence because they can:Plan and align on performance goals and metrics Understand business impacts, then model and predict future directionsProactively balance risks and opportunitiesA great example of this is Under Armour.Under Armour uses business analytics solutions from SAP to bring together information in their data warehouse, point of sales systems and sources outside of their organization – for example, via social media channels. They look at the information holistically to create the most accurate plans, minimize risk in the decisions they make and stay on top of who their customers are and how to appeal to them. All of this – easily and quickly. Third – Act BoldlyAll of these organizations were able to act boldly because they could:- Respond instantly to events as they unfold - Collaborate and take coordinated action on the best decision- Learn from best practices, adapt and continually improve over timeWhat better example of this than FonterraFonterra is the world’s leading exporter of dairy products, Fonterra Cooperative Group Ltd faces massive challenges with export documents. To streamline export processes, Fonterra implemented the SAP® BusinessObjects™ Global Trade Services application. With its help, Fonterra has standardized and automated these processes internationally, increased export documentation officer productivity, reduced compliance risks, and improved accuracy and timeliness. “We have already boosted throughput by 25%,” reports Clyde Fletcher., Global Documentation Manager. “We have many plans to improve it further by tuning the software and our processes, by extending the application’s reach to the rest of the world, and by bringing several outsourced functions in-house where we can now perform them much less expensively. By the end of year four we fully expect to be 100% more productive in exporting, and we haven’t even touched importing yet, which likely offers all the same benefits.” 
  • Knowing, Deciding and Acting of course are not disconnected events – rather they reflect the essential milestones within a continuous and repeating circle of essential business activities that ideally are connected in a closed-loop fashion to enable iterative monitoring, review and optimization. These essential business functions start at the very beginning when an organization sets its business STRATEGY which then drives a comprehensive and clear business PLAN.  This plan which many participate in developing and many more consume to set their short and long term objectives to achieve clear and measurable goals drives EXECUTION.  It is at this point that forward thinking companies are able to use business analytics to ask key questions such as “What Happened, Why Did it Happen and How do I prevent that from happening again?.....to ANALYZE and understand their business IN THE MOMENT. Of course just gaining insight is not enough to gain and sustain competitive advantage. One must act on the new information to OPTIMIZE and adjust your business going forward. Which in many instances can even result in your strategy being refined or altered as one repeats the circle yet again. Thus business analytics must be thought of as a connected and repeating set of DATA-DRIVEN actions that build on one another to optimize business performance in an ongoing fashion  
  • The #1 Business Analytics Platform in the IndustrySAP, and only SAP, is best positioned to address this optimization circle.As the Market Leader in business analytics we have the most comprehensive business analytics platform to address every element from data management through purpose-built LOB and Industry solutions that employ best practices to address your needs today and tomorrow.No one else has the most complete offering for business analytics….Data Warehouse Management A key requirement to better facilitate reporting and analysis – stores volumes of data and serves it up rapidly without impacting operational systems2) Enterprise Information Management The primary focus here is on delivering trusted information to the organization, for consumption by a variety of applications and business users. “Turning data into decision-quality information you can trust.”3) Business Intelligence Delivers a set of tools that can be used by business professionals to have an integrated view of corporate information for decision making. “Turning information into insight for better decision making.”4) Enterprise Performance ManagementIs about delivering an environment where performance is captured, understood and adjusted according to the execution needs of the organization. It builds on the other areas, capturing and sharing information specific to strategy, operational and financial planning and forecasting and reporting. “Using insight and informed decisions to drive strategy and alignment.”5) Governance, Risk, and ComplianceDelivers a comprehensive platform to manage GRC on an ongoing basis, ensures that internal and external rules are followed and enforced, and controls access to systems and information. “Making risk and compliance part of decision-making, strategy, and performance management.”6) Analytic Apps Purpose-built role and industry specific applications that provide information in context with a rapid time to value7) CollaborationYou can engage with your team, your organization, or your extended network to collaboratively make decisions and take coordinated action. The business analytics solutions from SAP are designed from the ground up to work together in a seamless and flexible fashion with a unified data management model to a common, intuitive user interface tool set.
  • SAP knows that different solutions require different approaches. Therefore we provide a broad range of business analytic solution delivery options ranging from custom applications that an organization or its partners build on their own using the SAP Business Analytic solution portfolio – the #1 business analytic offering in the industry to embedded analytics that directly reside within our SAP Business Suite business process solution offerings to standalone Industry and LoB packaged analytic applications that are designed to be extensible and easily work with with any data source. Industry & LoB Packaged Analytic ApplicationsQuick Implementations with flexibility to extend and optimize Comprehensive, extensible Industry and LoB solutions incorporating best practices, rapid deployment, and SAP Global support Embedded Analytics Integrated Transaction Specific ReportingManagement can focus attention quickly on most critical areas and make faster business decisions Custom Analytic ApplicationsLeverage the industry’s leading business analytics platformAddress your unique needs leveraging SAP’s leading BI, EIM, DW, EPM and GRC capabilities  
  • All insurance companies have some balanced scorecard , management information packs or key figures dashboards to track ,monitor and optimize performance Ensuring all employees are in alignment with corporate goals is critical to ensure the insurance companies strategy is are executed as planned SAP BusinessObjects has a suite of planning , profitability and dashboards products that assist in the corporate performance management functionKey customer in this area are Allstate , The Hartford , Farmers InsuranceAIB – UKAviva – UKAXA – FranceChaucer plc – UKCIS – UKDelta Lloyd – NetherlandsDirect Line - UKHibernian General – IrelandMondial Assistance Group – UKPrudential plc – UKRoyal-Liver – UKRoyal & SunAlliance – UKStandard Life – UKSwiss Life – UKZurich Int’l. – UKXL – UKCustomer SituationExecutives want a ‘balanced scorecard’ approach that captures qualitative and quantitative measures in interrelated perspectivesEmployees don’t fully understand the overall strategy, what activities they should be focused onDescription SAP® BusinessObjects™ Strategy Management application empowers business users at all levels to rapidly align resources to execute on strategies, understand risk, and drive effectiveness and profitabilityValue Proposition All employees aligned behind corporate goals , metrics and key figures to ensure strategy and execution in alignmentOutcome Opportunity Gain greater visibility into and control over the factors that affect your organization’s performance – which leads to greater efficiency and more agile execution
  • HR analytics and analysis based on Peoplesoft or SAP HCM from BWAll manner of sickness , talent, performance reporting , compensation planning analysis . References in Financial Services RBS >15000 users ( insurance divisions) , Citigroup >10000 users, Barclays ( HCM and BW) >2000 users for HR reporting . Allstate Insurance
  • Information on the go is a fast growing segment of the market More IPADS have been sold to Financial Institutions than any other market according to Good research http://www.zdnet.com/blog/btl/good-technology-financial-services-heaviest-users-of-ipads-in-business/41569The key use casesManagement information Digital management information books to display key metrics and KPIs . Replacing paper based reports in board and executive meetings and giving more real time update of key metrics to better drive deployments Customer facing roles Displaying information and analysis direct to B to B customer ( agent scenarios , wealth management performance reporting ) or direct to consumer in selling process Information on the go for every day employees . Risks ,sales and claims professionals who move around the insurers offices want to have their critical reports accessed anytime , anywhere Customer SituationInformation on the go for knowledge workers Improving sales productivity/claims reporting in the field Provide electronic tablet based management information books DescriptionAnalytics – reports, analyses, visualizations –to any mobile devices Value proposition Mobilize agents with secure real time customer and claims informationEmpower customers with access to real-time policy and claims information via mobile devicesEmpower employees with internal mobile analytics for information on the go Outcome Opportunity Improve customer loyalty Improve employee productivity Analysis in the moment for immediate answers
  • Planning and budgeting is a costly process with many manual interactions . Many companies still use Excel and struggle with integrating various spreadsheets for one plan SAP has developed scenarios and demos for insurance to show Driver-based PlanningStandard Industry ReportsStandard Industry MetricsCommon Industry Chart of AccountsCommon Industry Dimensions & HierarchiesBest Practice” PlanningExamples of drivers for Personal Lines P&C carriers. Commercial P&C carriers drivers will be different, but concept is easily extended. These drivers should enable you to quantify and model any scenario you face during plan year, perform unlimited number of “what-if” (scenario) analyses and calculate dollar impact of actual to plan comparisons (Premium Variance Analysis, Loss Variance Analysis, etc.)Agent Productivity = usually measured in applications per agentCPI = Consumer Price IndexPD = Property DamageEOM = End of MonthFrequency = number of claimsChallengeCannot streamline the planning and budgeting processes due to reliance on antiquated technologies like excelMultiple incompatible planning systems within business units, poor data quality, and disconnected models create lengthy planning cyclesDescriptionIndustry-specific reports, KPIs, management reportsInsurance planning processes, workflow and business ruleshelps align financial data for planning and budgetingBest practice based integrated BI platform and insurance templates to speed data entry and consolidationValue PropositionReduce combined ratio by improving financial visibility and more timely decisions making Reduces operational expenses by shortening forecasting cycle times Outcome Opportunity Insurance specific planning package tuned to your needsFaster implementation, streamlined planning processesKey customers ABD FinancialACE USAIG United GuarantyAmerican Republic Ins.AmeriHealth MercyAmerisure InsuranceArch Insurance GroupAssurantBlue Cross of IdahoBCBS of MichiganBCBS North CarolinaCUMIS - CanadaC N ADesjardins – CanadaEmployers InsuranceFIMCGermaniaThe HartfordJohn HancockMesirow FinancialMutual of EnumclawNational Farmers Union Ins.Pacific LifePhysicians MutualPICA GroupSunLife (Clarica) - CanadaThrivent Financial for Lutherans
  • In the past, every major crisis has highlighted some structural weaknesses of our economic system and as a consequence led to new government regulation. In addition, there is welcome progress to create new, unified standards that bring our global economy even closer together. The alphabet soup of IFRS, XBRL, SEPA and others is legion. The only challenge is that you need to comply with all these new standards in an efficient way within a relatively short timeSAP Financial Reporting and analysis solutions allow you to OUTPERFORM STAKEHOLDERS’ FINANCIAL EXPECTATIONSCascaded strategy and KPI’sEfficient and effective planning and budgeting that gives the agility needed to cope with uncertaintyDetailed and accurate reporting of costs and net profitability to support decision makingQuick and easy scenario analysisComplete end-to-end solutions for processing financial transactions enabled within a unique shared services framework End to end solutions for transaction processing enabled within a unique shared services frameworkFast and efficient budgeting, reporting and closingSeamless treasury and credit management operationsPervasive business analytics for self service reporting and analysis DELIVER SUPERIOR SERVICE AT REDUCED COSTReduced cost of financeEfficient transaction processing with minimal error rates Time to work with the business and add value to commercial decisionsSelf-service reporting for business users ..and benefits such as:Improved Return on Capital Employed (ROCE)Stronger Total Return for Stakeholders / Shareholders (TSR)Minimize # earnings warningsFewer days to close the booksReduced cost of finance as % of revenueLower days of sales outstanding (DSOKey insurance references – Standard Life and Royal Bank of Scotland Insurance division Key banking references in this area areSocieteGenraleLLoyds bank, Credit Agricole ,and UBS for financial reporting and consolidationFor SocieteGenerale10 days saved on close by streamlining inter-company reconciliation of over 800 entities
  • ABC analysis of the cost to serve a customer with each product through the channel the customer chooses For example PPACA (Obama Care) requires health insurers to have a 20% Maximum Medical Loss Ratio for Individual Business and 25% for Group Business; means that of every $1. for insurance the rest of that dollar must be spent on direct medical claim costs squeezing administrative costs and profit margins.AmeriHealth case study shows how AmeriHealth reduced its cost to adjust using ABC (Metify).
  • Claims optimization analytic application due October 2011. Custom claims analytics solution available now using SAP BusinessObjects 4.0 platform Claims is the biggest costs for Insurers and needs to controlled to ensure profitability . Claims inflation is being suffered throughout the industry at the present time as costs of claims rising faster than premiums . Analytics can be used effectively to analyze ways to reduce costs. Who is the lowest cost provider for different types of auto repairsWhich provider can turnaround the auto repair in the shortest time reducing rental car costs ?Which provider has economies of scale to repair at lower costs if more work is provided to them ?What is being lost in fraudulent or out of line claims, . Which cases to we pursue to litigation with the best hope of recovery based on history What type of characteristics do high value claimants have ? From which geographies ? How do we optimize new customer acquisition to minimize claims in the future ?How long does it take to process different types of claim > Claims cycle times?We have otver 100 insurance claims clients in this area Examples Royal and Sun Alliance ( RSA)AllstateFarmers Insurance Legal and General Insurance
  • Underwriting – a critical area for Insurer to achieve profitability . Empower employees with self service access to actuarial reports , pricing analysis and detailed historical .
  • Allstate is a customer for risk management reporting and analysis with SAP dashboards and Web intelligence . At present they do not use the analytical application .A set of reports , dashboards, KPI data model for this area of the insurer . Risk . ,Solvency and Office of CFO. Allows insurer to speed up compliance with Solvency Regulations' such and Solvency II
  • The huge rise in unstructured data is leading to requirements to analyse and interpret this data What are consumers saying about banks and their products in blogs ?What is the view on our brand in social media such as facebook and twitter ?How can i capture and interpret risk information on the web with relation to key credit risk counterparties the banks hold The SAP BusinessObjects 4.0 Platform includes Text analytics to able to read ,interpret and sort unstructured data and turn it into knowledge to be used by the business in risk ,compliance and sales . ChallengeTrack and understand customer sentiments held on social media sites and internet forums Track service issues, brand perception, customer noise on topics DescriptionCapture and analyze unstructured textual information from online sources and social media sites Present consolidated view of your brand’s customer sentimentTrack and monitor issues that are vexing your customers Value Proposition Use SAP BusinessObjects Text Analysis and sentiment tracking included the BI 4.0 Data Services to analyze all Twitter , social network and web data Outcome Opportunity Address small customer issues quickly and create customer satisfaction storiesImproved customer service by identifying issues
  • Customer SituationProperty Casualty insurers must respond to complex disasters as they are occurringInability to manage resources needed for high volumes and complex claims in the midst of uncertain services delivery and infrastructure DescriptionEvent triggered and process based to rapidly initiate response to immediate claims scenarios (flood, tornado, wind, earthquake) Adjusters can be dispatched, field claims centers can be created and managed efficiently Monitoring of complex events reduces the occurrence of claims and medical fraud Value Proposition SAP BusinessObjects Event Insight , SAP Sybase CEP and Aleri integrated with SAP BusinessObjects 4.0 platform to give integrated real time operational Business Intelligence Outcome Opportunity Faster response mitigates additional damages and claims reducing the costs Enhanced claims serviceImproved corporate good will and customer satisfaction
  • Large scale extranet portals are common in financial services to improve stickiness of client relationship and to lower service costs in callcenters and branches Examples Large scale retirement statement and analysis on line at T Rowe Price and JP Morgan Allstate has agent extranet with over 10000 log ins for agent reports and compensation analysis We have over 100 clients in this area such as Axa, Allstate , Farmers ,Zurich,
  • Large scale agent and branch reporting empowers front line employees with information on sales budgets performance by products, agent ,area or country Cross selling campaigns can be tracked to ascertain program success, managers can manage by exception by focusing on poorly performing agents , product managers can identify areas of the country or types of customers adopting new services offered by the insurer Real time, in-memory analytics and applications so business users can make better decisions faster Data analysis of customer data in a timely fashion is critical to success . In memory advancement gives more real time analysis of customer data to be used by marketing ,sales and front office employees to make better customer acquisition strategies and improve customer satisfaction We launched the first solution (SAP Human Capital Planning) to be based on our new High Performance Analytic Application (HANA) at the end of 201, but there are others in the pipeline that will deliver astounding performance. For instance In tests a dunning report that previously took 77 minutes to run took 13 seconds - 365 x fasterPlanning and forecasting based on massive amounts of real-time operational data
  • Customer SituationInsurers need to differentiate on service not price to drive loyalty A single view of the customer to provide consistent, coordinated customer-experienceDescription Monitor key service KPIs on customer experience Deliver consistent level of service across multiple channels by empowering employees with better self service information Monitor and hear social media feedback on Twitter and social networks Value Proposition One source of the truth for trusted customer data to better empower front line employees serve the customer Outcome Opportunity Reduced service costs & Improved service response time Increased agent and customer satisfactionIncreased retention and cross-sell
  • We have the most powerful ecosystem and together we are stronger than if we ‘go it alone’. Our purpose for leveraging the ecosystem is to ensure we meet all of your unique needs. We know we cannot deliver on every need along. However, now you can go to ONE place to find all analytics to meet your needs We have 2 million community subscribers, 800 OEM partners over 2500 SI partnersThe SAP ecosystem brings together customers, partners and individualThe ecosystem is an integral part of how we deliver value to customers.  It is part of the SAP business fabric. It enables solutions that best fit the unique needs of our customers - No single company can do it all.  Customers expect the ability to add capabilities as they’re needed, and that the technology they buy will work together.  
  • Only SAP can deliver a TRUSTED 360-degree viewData quality and other information management capabilities enable you to have complete and trusted insight of all information across your organization – whether it be from transactions, operational performance, or external information from the internet or social media. Plus you can also see the quality ratings of the information your are looking at so you can determine the level of trust you have in the information.In addition, only SAP has the capability to build in risk information and compliance monitoring information so you can be confident that the decisions you make are in compliance and you can make the right calculated risk for your organization.SAP can deliver information LIGHTNING FAST via a technology called “In-memory computing”Can you imagine receiving information many times faster than traditional databases? Think of that one report that takes 20 minutes to run. Would you like to get that back within seconds? Consider the impact across 100s of reports, calculations, predictions…What if you coulddrastically reduce costs by having real-time price information from different vendors included in the creation of a purchase order – so you could select the best quote? answer within split seconds where medications of a bad batch are stored in a heterogeneous supply chain?SAP delivers an Engaging user experience that’s EASY to useAre SAP and ease of use synonymous? Today they are! Now you can have the information you need wherever you happen to be. Whether you are Mickey at Disney or an emergency medical team in the field, you have the ability to interact with data in the way you need it, as events take place and with the right visualization depending on the situation.Our solutions provide a harmonized user experience: whether you access the information via a mobile device or your PC, via a dashboard or a report, the UI is consistent – one experience to learn and a very easy and intuitive experience.  SAP enables you to leverage your information ANYTIMEWhen and where are you likely to need access to information in your organization?If it makes sense to access analytics via a mobile device we can do that. Do you need to implement analytics on premise or on demand? We can do both.With our mobile options you have the capability of using analytics via any mobile device and platform and have complete peace of mind when it comes to security of the information.SAP delivers analytics with pre-built INDUSTRY/LoB EXPERTISEWe take a very industry specific and business process centric view of what analytics are needed for each role.We offer over 20 industry and LoB-specific analytic applications (with more to come in 2011). These are purpose built with our customers and partners to meet very specific analytic needs within your industry and your business functions. They provide quick time to value with best practices, best KPIs, data models, reports, and dashboards. The purpose: to bring meaning and immediate knowledge into your organization, tailored to individuals’ roles and your industry.We also have integrated compliance and risk monitoring into the appropriate business processes as well as embedded analytics to deliver best-practice business content directly into SAP Business Suite. SAP Business Suite users now have access to content out-of-the-box right their familiar environment to gain immediate value through insights never previously available inside the business process. SAP provides analytics that are COLLABORATIVE and allow you to ‘close the performance management loop’ How often have you required information that was dependent on someone else? No one acts in isolation, right?With business analytics solutions from SAP you can engage with your team, your organization, or your extended network to collaboratively make decisions and take coordinated action.Our analytics can be shared and leveraged across all departments or even with your suppliers and customers as needed.As each organization addresses its analytic needs the entire ecosystem can benefit by leveraging the information and best practices, and by extending the analytic capabilities.  
  • In summary,SAP BusinessObjects BI Solutions represents one of the most effective and fastest way of empowering your executives, analysts, staff, suppliers, and partners by bringing together the timely, relevant business views they need to make better-informed choices and confident decisions. It offers insight into business operations at every level of your value chain; it increases competitiveness with enhanced ability to predict and react to market changes and opportunities; it improves enterprise performance through better decisions based on trustworthy, timely information, and heighten customer and market insights, leading to new or hidden opportunitiesCLICKSAP BusinessObjects BI solutions supports all the information access, interaction, and analysis needs of the different business users across your organization. By meeting the needs of nearly every role and every individual, businesses can gain smarter, better alignedpeople, teams, and ecosystems. They leverage decades of SAP BusinessObjects know-how and industry-leading expertise. They take advantage of BI best practices developed through close collaboration and development with industry leaders and partners.CLICKSAP BusinessObjects BI solutions offer a low total cost of ownership by leveraging implementation offerings from experienced SAP and SAP partners. It’s also the only BI solution integrated with EIM, EPM and GRC for bringing execution and strategy together. SAP also offers a complete BI on-demand that accelerates your time-to-deployment and minimize your cost of ownership over time as you can assign IT resources to other priorities, resources that would have been otherwise assigned in deploying and maintaining your BI infrastructure in-house.CLICKSAP is a recognized leader in business intelligence. Over 80% of Fortune 500 companies rely on SAP BusinessObjects solutions. It offers rapid time to value, often in a matter of months. Incentives provided by SAP and partners can further increase the overall value of your BI investment.CLICKAnd Finally, fast and cost-effective integration with existing SAP and non-SAP systems and your IT infrastructure AND SAP large ecosystem of partners lower your risk exposure. This concludes our overview of the SAP BusinessObjects BI solutions. Thank you.
  • In summary,SAP BusinessObjects BI Solutions represents one of the most effective and fastest way of empowering your executives, analysts, staff, suppliers, and partners by bringing together the timely, relevant business views they need to make better-informed choices and confident decisions. It offers insight into business operations at every level of your value chain; it increases competitiveness with enhanced ability to predict and react to market changes and opportunities; it improves enterprise performance through better decisions based on trustworthy, timely information, and heighten customer and market insights, leading to new or hidden opportunitiesCLICKSAP BusinessObjects BI solutions supports all the information access, interaction, and analysis needs of the different business users across your organization. By meeting the needs of nearly every role and every individual, businesses can gain smarter, better alignedpeople, teams, and ecosystems. They leverage decades of SAP BusinessObjects know-how and industry-leading expertise. They take advantage of BI best practices developed through close collaboration and development with industry leaders and partners.CLICKSAP BusinessObjects BI solutions offer a low total cost of ownership by leveraging implementation offerings from experienced SAP and SAP partners. It’s also the only BI solution integrated with EIM, EPM and GRC for bringing execution and strategy together. SAP also offers a complete BI on-demand that accelerates your time-to-deployment and minimize your cost of ownership over time as you can assign IT resources to other priorities, resources that would have been otherwise assigned in deploying and maintaining your BI infrastructure in-house.CLICKSAP is a recognized leader in business intelligence. Over 80% of Fortune 500 companies rely on SAP BusinessObjects solutions. It offers rapid time to value, often in a matter of months. Incentives provided by SAP and partners can further increase the overall value of your BI investment.CLICKAnd Finally, fast and cost-effective integration with existing SAP and non-SAP systems and your IT infrastructure AND SAP large ecosystem of partners lower your risk exposure. This concludes our overview of the SAP BusinessObjects BI solutions. Thank you.

Business analytics solutions from sap for the insurance industry (july 2011) Business analytics solutions from sap for the insurance industry (july 2011) Presentation Transcript

  • Business Analytics Solutions from SAPfor the Insurance Industry
  • Legal DisclaimerThe information in this presentation is confidential and proprietary to SAP and may not be disclosed withoutthe permission of SAP. This presentation is not subject to your license agreement or any other service orsubscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in thisdocument or any related presentation, or to develop or release any functionality mentioned therein. Thisdocument, or any related presentation and SAPs strategy and possible future developments, products andor platforms directions and functionality are all subject to change and may be changed by SAP at any timefor any reason without notice. The information in this document is not a commitment, promise or legalobligation to deliver any material, code or functionality. This document is provided without a warranty of anykind, either express or implied, including but not limited to, the implied warranties of merchantability, fitnessfor a particular purpose, or non-infringement. This document is for informational purposes and may not beincorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, exceptif such damages were caused by SAP´s willful misconduct or gross negligence.All forward-looking statements are subject to various risks and uncertainties that could cause actual resultsto differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in makingpurchasing decisions.© 2011 SAP AG. All rights reserved. Confidential 2
  • Successful Insurance Organizations . . . Provide each customer with simple and differentiating products that enable profitable growth They do it by: Making profitable sales via the right channels Reducing claims and operational costs Making good decisions and managing finance and risk Result: Increase customer retention and satisfaction rates Improving expense ratio Mitigating risk exposure and meeting regulations© 2011 SAP AG. All rights reserved. Confidential 3
  • Delivering Remarkable Business Performance:What did the best do in Insurance? 10.8% 95% 95% Expense ratio* Customer Combined ratio* retention** Operational Customer Financial Excellence Experience Excellence (Superior Sales, Service & Marketing)*A M Best** J D Powers © 2011 SAP AG. All rights reserved. Confidential 4
  • Leading Performance Indicators Enable the Best toCapture and Sustain a Competitive Advantage in Insurance Loss ratio* Close books in 3 days Renewal rate Customer satisfaction rate Solvency/capital ratio* Total investment return* Claims cycle time** Customer profitability* A M Best** Verint Property & Casualty Benchmark Report (see for operational metrics) © 2011 SAP AG. All rights reserved. Confidential 5
  • Going Beyond Just Reporting Yesterday’s News to EnableInsurance to Run Smarter CLAIMS MANAGEMENT l REINSURANCE l SALES AND CHANNELS l COLLECTIONS AND DISBURSEMENTSCOMMISSIONS MANAGMENT l FINANCIAL ASSET MANAGMENT OPERATIONS l HR l FINANCE | IT | SALES l MARKETING What What is What will happened? happening now? happen? How and why What is the risk if it How do you prevent/ did it happen? does/doesn’t happen? ensure it happens again? PAYMENTS PROCESSING l ENTPERPRISE RISK AND SOLVENCY II l CUSTOMER CARE l DISPUTE MANAGEMENTTom Davenport International Institute for Analytics © 2011 SAP AG. All rights reserved. Confidential 6
  • Embracing a Data-Driven Approach to Business EnablesYour Entire Organization to Perform to Its Potential Know Your Business Decide with Confidence Act BoldlySee 360-degree view of Define, plan and align on Reduce risk exposure toyour insurance customer performance goals and problem LoBs metricsUnderstand your capital Use analytics to reduceand solvency situation Reduce claims cycle claims InflationKnow financial and Drive retention and customer Cut costs to improveoperational performance satisfaction rates operational efficiency© 2011 SAP AG. All rights reserved. Confidential 7
  • A Seamless Closed-Loop Business Analytics Approach isRequired to Enable Organizations to Know, Decide and ActAnalyze volumes of Comply to Solvency IIcustomer data new and risk regulationschannel strategiesOne view of Improve customerInsurance product renewal rates byholdings Know Decide Act processing claims faster Your Business With Confidence BoldlyClose the Reduce operationalbooks faster costs and optimize performance© 2011 SAP AG. All rights reserved. Confidential 8
  • SAP Offers the Most Comprehensive Business AnalyticsSolution Platform to Address Your Critical Insurance NeedsAnalyze volumes of Respond to changescustomer data to drive in regulations andcross-sell campaigns Analytic mitigate risk Applications for Industries & LoBs Enterprise Business PerformanceOne view of Intelligence Improve customer Management Industry’scustomer product Leading Business loyalty by empoweringholdings Analytics Platform employees Enterprise Governance, Information Risk, and Management Compliance DataClose the Warehousing Reduce operationalbooks faster costs and optimize performance© 2011 SAP AG. All rights reserved. Confidential 9
  • SAP’s Flexible Approach to EnablingBusiness Analytics Within Your Insurance Enterprise Industry & LoB Embedded Custom Analytic Packaged Analytics ApplicationsAnalytic Applications Rapid implementation Integrated Leverage the industry’s incorporating best transaction-specific leading business analyticspractices with flexibility to reporting for faster platform to address your extend and optimize business decisions unique needs© 2011 SAP AG. All rights reserved. Confidential 10
  • Business AnalyticUse Cases for Insurance
  • Strategic Business Analytics Use Cases for Insurance Management Finance Compliance Sales Operations Improve Be Manage Increase Operate Performance Prepared Risk Sales Efficiently Corporate Planning Underwriting Channel and Agency Performance and Consolidation Claims Optimization Optimization Analysis Management for Insurance Talent and Cost and Financial Asset Customer Sentiment HR Reporting Profitability Analysis Service Optimization Management Analytics and Analysis for Insurance Mobile IRFS Reporting Enterprise Risk and Customer Statements Catastrophe Claims Analytics & Closing the Books Solvency II And Extranets ManagementClick on any box in bottom three rows to see use case© 2011 SAP AG. All rights reserved. Confidential 12
  • Enterprise Performance Management for Insurance SAP SAP BusinessObjects Custom App Analytic Application Analytic AppCustomer Situation  Executives want a ‘balanced scorecard’ approach with qualitative and quantitative measures interrelated  Employees don’t fully understand the overall strategy, what activities they should be focused onDescription  For users at all levels to rapidly align resources to execute on strategies, understand risk, and drive effectiveness and profitabilityValue Proposition  Align all employees to corporate goals  Timely metrics/key figures to ensure alignment of strategy and execution Advanced with SAP BusinessObjects Strategy ManagementOutcome Opportunity and SAP BusinessObjects Web Intelligence  Greater visibility into, and control over, the factors that affect your organization’s performance  Greater efficiency and more agile execution Return© 2011 SAP AG. All rights reserved. Confidential 13
  • Human Resource Reporting and Analysis SAP SAP BusinessObjects Custom App Analytic Application Analytic AppCustomer Situation  Need to see employees moves across company, HR metrics, productivity metrics by any group or area  Inability to manage people costs effectively  Inability to manage top talentsDescription  Talent management analytics  Track and monitor HR metrics  Compensation and people reportingValue Proposition  Empower HR employees and managers with reporting , analytics and key figures for improved Advanced with SAP BusinessObjects BI 4.0 solutions people management.  Integrates with SAP ERP Human Capital Management or any other HR systemOutcome Opportunity  Reduce loss of key talents  Proactively manage people costs Return© 2011 SAP AG. All rights reserved. Confidential 14
  • Mobile Analytics for Insurance SAP SAP BusinessObjects Custom App Analytic Application Analytic AppCustomer Situation  Information on the go for knowledge workers connect to enterprise data  Improving sales productivity/field claims reporting Mobility enables you to consume information anytime, anywhere control your business  Provide electronic tablet-based management information books Service CustomerDescription Mobile Claims Analytics  Analytics – reports, analyses, visualizations – Real-time Policy Information to any mobile device Executive Mobile Sales ……….. Social Media PartnerValue proposition  Mobilize agents with secure real-time customer and claims information Operations Sales  Empower customers with access to real-time policy IT and claims information via mobile devices Advanced with SAP BusinessObjects Mobile  Empower employees with internal mobile analytics for information on the goOutcome Opportunity  Improve customer loyalty  Improve employee productivity Return  Analysis in-the-moment for immediate answers© 2011 SAP AG. All rights reserved. Confidential 15
  • Planning and Consolidation for Insurance SAP SAP BusinessObjects Custom App Analytic Application Analytic AppCustomer Situation  Cannot streamline planning and budgeting processes; rely on spreadsheets  Multiple incompatible planning systems, poor data quality, disconnected models mean long cyclesDescription  Industry-specific reports, KPIs, management reports  Insurance planning processes, workflow, rules  Best practice-based integrated BI platform/insurance templates to speed data entry/consolidationValue Proposition  Reduce combined ratio by improving financial visibility for more timely decision making  Reduce operational expense by shortening Advanced with SAP BusinessObjects Planning and forecasting cycle times ConsolidationOutcome Opportunity  Planning package tuned to your needs  Faster implementation, streamlined planning processes Return© 2011 SAP AG. All rights reserved. Confidential 16
  • IRFS Reporting and Closing the Books SAP SAP BusinessObjects Custom App Analytic Application Analytic AppCustomer Situation  Too long to close books at end of quarter, too many manual processes  Align GL/operational systems  Meet IAS 9 & IRFS requirementsDescription  Consolidate any number of complex GLs into one  Automate production of financial figures  Produce regulatory filings and reportsValue Proposition  Reduce the operational costs of the Finance function through better automation  Improved financial insightOutcome Opportunity Advanced with SAP BusinessObjects Financial Consolidation  Close your books in < 3 days at end of quarter and SAP BusinessObjects Disclosure Management  Fewer errors, less manual reworking reduce costs  Meet regulator concerns Return© 2011 SAP AG. All rights reserved. Confidential 17
  • Cost and Profitability Analysis for Insurance SAP SAP BusinessObjects Custom App Analytic Application Analytic AppCustomer Situation  Inability to understand costs by customer segments Agency Branch (e.g., cost to sell, underwrite, adjust, serve, etc.)  Inability to accurately reflect costs into Product Customer product, customer, sales channel and pricing Channel Group Segment strategyDescription  Allocate costs more efficiently across the enterprise Individual IndividualValue Proposition Product Customer  ABC cost analysis to identify costs by customer segment, channel and product  Identity and align the most/least profitable Individual products, channels and customer segments TransactionOutcome Opportunity  Improve profitability by identifying and aligning Advanced with SAP BusinessObjects Cost and Profitability Management customer segments, products, sales channels and pricing Return© 2011 SAP AG. All rights reserved. Confidential 18
  • Claims Analytics for Insurance SAP SAP BusinessObjects Custom App Analytic ApplicationCustomer Situation Analytic App  Claims are largest cost and rising  Inability to predict/proactively manage emerging claims bottlenecksDescription  Need to optimize internal claim resources use  Identify lowest claim service providers  Improve claims service speedValue Proposition  Metrics, dashboards, reports to optimize claims performance management  Monitor/improve claims cycle time and customer satisfaction  Integrate with SAP or non-SAP claims data Advanced with SAP BusinessObjects BI 4.0 solutionsOutcome Opportunity  Reduce claims costs  Optimize claims service provider expenses  Improve service and customer retention Return© 2011 SAP AG. All rights reserved. Confidential 19
  • Underwriting Optimization for Insurance SAP SAP BusinessObjects Custom App Analytic Application Analytic AppCustomer Situation  Inability to optimize underwriting effectiveness and efficiency  Lack of insight into pricing decisions and the effect on loss exposuresDescription  Extract , clean and interpret pricing data  Gain insight into underwriting performance  Provide loss triangles, underwriting loss reports, key performance indicatorsValue Proposition  Improve underwriting insight and optimize pricing decisions based on analytical analysisOutcome Opportunity  Better manage risk exposures Advanced with SAP BusinessObjects 4.0 solutions  Identify underwriting pricing mismatches and SAP BusinessObjects Dashboards Return© 2011 SAP AG. All rights reserved. Confidential 20
  • Enterprise Risk and Solvency Management for Insurance SAP BusinessObjects Custom App Analytic ApplicationCustomer Situation  Inability to obtain enterprise view of risk indicators  Meet Solvency II regulationDescription  Pre-built analytic content for internal Solvency II reporting – 60 x KPIs, dashboards and reports  Monitor and report on solvency capital ratios  Actuarial and CFO solvency reportingValue Proposition  Meet internal reporting requirements for Solvency II compliance with pre-built content  Better manage capital and solvency requirementsOutcome Opportunity  Meet solvency requirements  Mitigate risk and better allocate capital Advanced with SAP BusinessObjects Edge Enterprise Risk and Solvency Management for Insurance Return© 2011 SAP AG. All rights reserved. Confidential 21
  • Financial Asset Management Optimization SAP SAP BusinessObjects Custom App Analytic Application Analytic AppCustomer Situation  Inability to optimize portfolio/asset management strategy  Inability to report by currency, regulatory or accounting principles  No flexible reporting to identify low/high performersDescription  Self-service access to portfolio performance reports by any dimension – currency, asset type, etc.  Analyze your portfolio structure and content using multi accounting principlesValue Proposition  Easily analyze your portfolio structure and content  Identify/evaluate risks in your asset portfolios Advanced with SAP BusinessObjects BI 4.0 solutionsOutcome Opportunity  Improved portfolio performance  Automated process for asset risk identification including funds look-through principles Return© 2011 SAP AG. All rights reserved. Confidential 22
  • Customer (and Agent) Sentiment Analyticsfor Insurance SAP SAP BusinessObjects Custom App Analytic Application Analytic AppvCustomer Situation  Track and understand customer sentiment  Track service issues, brand perception, customer noise on topicsDescription  Capture and analyze unstructured textual information from online sources and social media sites  Present consolidated view of your brand’s customer sentiment  Track and monitor issues vexing your customersValue Proposition  Quickly and completely analyze all Twitter, social network and web dataOutcome Opportunity  Address small customer issues quickly Advanced with SAP BusinessObjects Data Services  Create customer satisfaction stories  Improve customer service by identifying issues Return© 2011 SAP AG. All rights reserved. Confidential 23
  • Real-time Catastrophe Management and Reporting SAP SAP BusinessObjects Custom App Analytic Application Analytic AppCustomer Situation  Property casualty insurers must respond to complex disasters as they occur  Inability to manage resources needed for high volumes/complex claims in uncertain services delivery and infrastructureDescription  Event-triggered and process-based to rapidly initiate response to immediate claims scenarios  Adjusters dispatched, field claims centers created and managed efficiently  Reduces occurrence of claims and medical fraudValue Proposition  Integrated, real-time operational business intelligence to manage events Advanced with SAP BusinessObjects Event Insight, Sybase CEP and Sybase Aleri integrated withOutcome Opportunity SAP BusinessObjects BI 4.0 solutions  Faster response mitigates additional damages/claims  Enhanced claims service  Improved corporate good will and customer Return satisfaction© 2011 SAP AG. All rights reserved. Confidential 24
  • Statements and Extranet Reporting for Insurance SAP SAP BusinessObjects Custom App Analytic Application Analytic AppCustomer Situation  Giving 24x7 access to customers/partners to secure information and analysis from back-end systems  Presenting customer statements for pensions, life and home policy via web and mobile devicesDescription  Extranet reports for customer or agency analysis  Mobile access to statements and analysis  Secure self-service access for insurer’s customersValue Proposition  Pixel perfect reports and analysis for thousands of customer statements for access by web or mobileOutcome Opportunity  Reduce operational costs  Improve customer loyalty Advanced with SAP BusinessObjects BI 4.0 solutions Return© 2011 SAP AG. All rights reserved. Confidential 25
  • Customer and Agency Analysis SAP SAP BusinessObjects Custom App Analytic Application Analytic AppCustomer Situation  Insurers lack insight into sales distribution channel performance by agency, customer, policy type  Inability to identify new customer or territory segments to drive sales growthDescription  Slice and dice sales data by any dimension  Trusted, clean customer data for agency analysis  Segment, cross- and up-sell customers to drive salesValue Proposition  One source of truth for customer and agent data analysis, marketing segmentation and cross-sell Advanced with SAP BusinessObjects BI solutionsOutcome Opportunity  Increase sales and renewal rates  Manage by exception to improve productivity  Proactively manage sales for profitable growth Return© 2011 SAP AG. All rights reserved. Confidential 26
  • Service Optimization SAP SAP BusinessObjects Custom App Analytic Application Analytic AppCustomer Situation  Insurers need to differentiate on service not price to drive loyalty  A single view of the customer to provide consistent, coordinated customer-experience Social MetricsDescription  Monitor key service KPIs on customer experience  Deliver consistent level of service across multiple channels by empowering employees  Monitor and hear social media feedback on Twitter and social networksValue Proposition  One source of truth for customer data empowers front-line employees to better serve the customer Advanced with SAP BusinessObjects BI 4.0 solutionsOutcome Opportunity  Reduce service costs and Improve service response time  Increase agent and customer satisfaction  Increase retention and cross-sell Return© 2011 SAP AG. All rights reserved. Confidential 27
  • SAP’s Global Partner Ecosystem Can Address YourInsurance Business Analytic Needs Today and Tomorrow Services & Implementation SAP’s Insurance Partner Ecosystem Strategy Complementary Co-Innovation Products/ Industry-specific services Offerings offerings for rapid deployment SAP Breadth of solution coverage Hosting services/cloud offerings Cloud Offering Channel Hosting/OD© 2011 SAP AG. All rights reserved. Confidential 28
  • SAP BusinessObjects Solutions: Over 600 Customers inInsurance© 2011 SAP AG. All rights reserved. Confidential 29
  • The SAP Difference Trusted Lightning Fast Easy Anytime Industry/LoB Collaborative Expertise© 2011 SAP AG. All rights reserved. Confidential 30
  • Thank You!
  • Appendix 1
  • Why SAP as Your Trusted Strategic Partnerfor Business Analytics Solutions? Most Comprehensive Portfolio InnovationIndustry’s first fully integrated Business Analytics In-Memory driven performance, multi-data sourceplatform semantic layer support, complex event processing, unstructured data analysis, user managedPortfolio of Industry- and LoB-specific business analytic data quality profiling, mobile insight deliverysolutions Industry’s first fully unified administration environmentBest integration with SAP business processapplications and heterogeneous data environments On demand, on premise and on device Lower Risk Proven ValueSolutions are designed to complement and extend your Over 80% of Fortune 500 companies rely on businessexisting IT environment analytics solutions from SAPVibrant ecosystem of over 7,000 partners with proven Over 18M users of SAP BusinessObjects solutionstrack records of success around the globeBest practices derived from close collaboration with Analysts rate business analytics solutions from SAP asindustry leaders around the globe #1 overall© 2011 SAP AG. All rights reserved. Confidential 34
  • Why SAP as Your Trusted Strategic Partnerfor Business Analytics Solutions?Most Comprehensive Business InnovationAnalytics Solution Portfolio In-Memory driven performance, multi-data source semantic layer support, complex eventIndustry’s first fully integrated Business processing, Unstructured data analysis, UserAnalytics platform managed data quality profiling, Mobile insight deliveryFull portfolio of Industry and LoB specific purposebusiness analytic solutions Industries first fully unified administration environmentBest integration with SAP business process applicationsand heterogeneous data environments On-demand, On-premise and On-device Lower Risk Proven Value Solutions are designed to complement and extend Over 80% of Fortune 500 companies rely on your existing IT environment business analytics solutions from SAP Vibrant ecosystem of over 7,000 partners with Over 18M users of SAP BusinessObjects solutions proven track record of success around the globe Best practices derived from close collaboration Analysts rate business analytics solutions from SAP with industry leaders around the globe as #1 overall© 2011 SAP AG. All rights reserved. Confidential 35