SAP Extends mySAP Insurance Solution with Comprehensive New Claims Management and CRM Capabilities for Property and Casualty Insurers

Business Wire, April 8, 2002

Business Editors/Insurance & High-Tech Writers

WALLDORF, Germany--(BUSINESS WIRE)--April 8, 2002

Solution Streamlines Claims Process

to Maximize Efficiency and Customer Satisfaction

SAP AG (NYSE:SAP) today announced the delivery of extensive new claims management capabilities that enable insurance providers to reduce the amount of time and money spent processing customer claims while increasing customer satisfaction. Claims management is the latest addition to the mySAP(TM) Insurance solution, which provides the industry's only end-to-end, integrated solution, spanning customer relationship management, claims management, and commissions management as well as operational capabilities such as financial accounting, collections and disbursements, e-procurement and human resources. The elements of the mySAP Insurance solution, including claims management, can be purchased, implemented, and deployed individually, interfacing to existing systems, or in aggregate.

Claims management with mySAP Insurance enables insurance companies to streamline their customer-facing and operational processes, from first notice of loss to claims settlement and financial reconciliation. Dynamic, personalized portals enable delivery of user-tailored content and empower claims processors, adjusters, agents, business partners, and even policyholders with up-to-the minute visibility into all aspects of claims relevant to them, which enhances accuracy and customer satisfaction. Call center agents can use the comprehensive capabilities of mySAP(TM) Customer Relationship Management (mySAP CRM) and mySAP Insurance to interact with policyholders and enter new claims, inquire into pending claims, gain visibility into the status of claims being settled, and automatically trigger transactions for adjusters, claims processors, and other designated service providers. Adjusters can see new claims assigned to them and the tasks they need to carry out, agents can be alerted to any new claims that might have been filed, and customers can check the status of their pending claims and carry out other self-service activities.

Intelligent, Efficient, and Cost-Effective Streamlined Claims Process, Anytime, Anywhere

Claims management with mySAP Insurance can help property and casualty insurers significantly reduce the time needed to service a claim by automating processes currently performed manually or through less than optimal system interfaces. For example, with an auto accident claim, streamlining and expediting first notice of loss, arranging for scheduling of towing and salvage on the vehicle, contracting for a rental car for the insured, reimbursement of the insured, and subrogation of the claim can shorten the claims processing cycle by five days, or ten days, or even fifteen to twenty days, depending on the insurer. With mobile claims management, insurance companies are able to use geographic information systems tied to mySAP CRM to locate the closest rental car services, glass shops, or building contractors to serve customers' needs. This increased efficiency has the potential to deliver very substantial savings to the insurer. Additionally, the solution enables detection of fraudulent or duplicate claims as the claim is being entered, which can lead to reduced costs and increased savings.

Additionally, embedded analytics enable intelligent decisions, which can not only reduce costs but also increase sales. With tailored reports, a claims adjuster may notice a sharp rise in claims in a particular geographical sector and trigger a follow-up action for the appropriate personnel. Using trend analysis, a marketing manager can determine that a particular demographic segment is receptive to new products if claims are settled quickly. All aspects of the claims process are connected via mySAP(TM) Enterprise Portals, including communication and e-procurement. Adjusters and insurance representatives can submit claim information via a variety of mobile devices including phones, personal digital assistants (PDAs), or pagers; replacements for stolen goods can be selected, approved by the claimant, and delivered to the claimant's home, all via the Internet.

"As insurers move to maximize the value of their customer relationships, managing claims becomes the most crucial aspect of differentiating themselves from their competitors," said Jamie Bisker, director of insurance at TowerGroup. "Automating the claims management process increases the most significant advantage the insurance industry has over the financial services companies that are beginning to compete in the insurance space."

"With the new Claims Management functionality, we're further delivering on our vision for mySAP Insurance -- to offer a comprehensive, end-to-end solution that supports all of the core customer-facing and operational processes in an insurance company," said Peter Kirschbauer, senior vice president of SAP's Services Industries Business Sector. "But we're also taking care to ensure that customers can implement elements of our solution in phases, as building blocks, consistent with their specific solutions needs."