SAP NEWSBYTE — SAP AG (NYSE: SAP) today announced the SAP® Insurance Analyzer analytic application to address two of the most challenging regulatory topics facing the insurance industry today. A new integrated finance and risk software solution, the application aims to help insurance companies seamlessly address the upcoming new accounting standards for insurance contracts (IFRS4) and the Solvency II standard model. The announcement was made at the SAP Forum for Insurance, being held on June 12-13 in Cologne, Germany.
The insurance industry today is challenged by a wave of new regulations in financial reporting and risk management, including Solvency II and IFRS4. Coupling new regulations with existing IT challenges, such as complex and fragmented system landscapes and insufficient data quality, insurance companies are in search of a new approach that enables them to adapt to new regulations, while improving data management and data quality.
In a recent Solvency II report Gartner makes the recommendation to “…Analyze, together with the business department, potential solution synergies between Solvency II and IFRS4. The delay of the regulatory framework should be an incentive to review your entire system architecture and reporting infrastructure.”*
SAP Insurance Analyzer is intended to enable insurance companies to move away from expensive and risky tactical approaches, putting SAP at the forefront of providing an integrated standard approach for IFRS4 and Solvency II. The analytic application aims to provide the architecture and technology to drive an integrated finance and risk vision, while offering business content to address IFRS4 and Solvency II requirements. Planned features include:
- A pre-configured insurance data model for source and result data
- Processes, functionality and business content for IFRS4 and Solvency II
- Tools and business content to speed up the integration of source systems and quantitative and qualitative reconciliation of data flows across system borders
“Our mission is to help our customers become best-run businesses and SAP Insurance Analyzer is another example of delivering on this promise as the market transforms with new regulations and technological advancements,” said Robert Cummings, global head of insurance business unit, SAP AG. “World-class SAP software solutions enable insurance companies to thrive by providing the insight and foresight necessary to make sound business decisions.”
The financial services industry at SAP, which includes banking, capital markets and insurance, is growing rapidly, with more than 5,700 customers making it a valuable asset for collaboration and co-innovation. A major element of the company’s approach is to understand and address the specific needs of the industry in order to help financial institutions around the world become more customer-centric, reduce cost and complexity and more easily manage regulatory and risk compliance.
*Gartner Industry Research: There’s No Easy Way Through the Solvency II Software Maze, Jürgen Weiss; May 20, 2013