A BearingPoint Accelerator

Transcription

1 > Investment Accounting in the Cloud A BearingPoint Accelerator Many mid- to small-size insurance companies strive to run SAP solutions in asset accounting and reporting (SAP CML, SAP CFM) but are not ready to invest heavily in implementing and running SAP. The cloud technology will allow these companies to exploit the advantages of a SAP based solution without major upfront investment in technical infrastructure, licensing and consulting fees. A template based SAP CML/CFM run in the Cloud will address this issue.

2 Contents Market Drivers Our Approach Client Benefits References Contact

3 Market Drivers Low-interest phase, regulation and global megatrends have tremendous impact on insurance companies Low-interest phase Operational excellence in the finance function Investment Controlling, yield planning and monitoring Intelligent trading and investment strategies Diversification of asset classes (e.g. alternative investments) New types of products (e.g. private provisions) Regulatory Changes Modernization of the Finance & Risk landscape driven by IFRS 9 and Solvency II Solvency II: Implementation of requirements by 2015/2016 in particular SCR calculation and QRT generation in investment management Optimization of investments strategy (SCR) under Solvency II Global Megatrends Trend to offer individual, flexible products (esp. Generation Y) Communication with clients (Social Media) Analysis of customer behaviors (Big Data) Demographic Change Massive increase of world wide AuM Cyber Risks threatening the entire value chain

4 Our Approach Approach to define our solution Offer a SAP FAM solution in the cloud based on a standardized template that covers 90% of standardized financial instruments most commonly used in the insurance industry i.e. fixed-income securities Our processes will include master and market data, position keeping, investment accounting and reporting Our role will be to define the solution and the initial client ramp-up project. To set-up and run the software in the cloud we will probably team up with partners. SAP might be a possible option

5 Our Approach Potential Scope Trading 2. Middle Office 3. Back Office 1. Master and Market Data Management > > > > > > 4. Investment Accounting 5. Investment Reporting 6. Investment Controlling Front-Office Non-SAP Master & Market Data Trade Support Pre Trade Check Hedge Strategy Trade Execution Interface to SAP Trade Entry Mgt. Broker Matching Trade Confirmation Compliance Check Cash & Asset Transfer Cash & Custody Reconciliation Positioning Keeping Accounting & Valuation perimeter Impairment Tax calculation Valuation & Accrual Sub ledger Closing Local Statutory & Regulatory Reporting Investment Monitoring Group (IFRS) Reporting Investment Planning & Controlling Asset Servicing Supported by SAP IMA Supported in SAP ICO Scope of our solution: Middle & Back Office

6 Our Approach The draft of the future Cloud based solution will be tailored for small/mid size insurance companies in terms of assets under management and trading activity Scope and Functions SAP FAM Standard Customizing based strictly on SAP FAM standard Release upgrade path (EHPs) aligned with solution roadmap Draft of SAP FAM in the Cloud Focus on listed instruments: bonds, equity and those OTC derivatives which are most commonly used: IRC, CCS, etc Accounting is aligned with SAP FI solution Chart of accounts Supports IFRS (additional GAAPs might be added in the future) and the future mandatory changes to these accounting standards Interfaced with the General Ledger in SAP FI and Front-Office Systems Client Specific Add-ons Additional reporting solutions (e.g. based on SAP BI/BO) Additional interfaces (e.g. master data) Specific financial instruments > Advantages Efficient ramp-up of processes User friendly Frictionless technical architecture Straight-through processing Statutory/regulatory Compliance Flexibility

7 Client Benefits Cost efficient, modern IT solution: Efficient ramp-up of processes User friendly Frictionless technical architecture Straight-through processing Solution will cover statutory requirements related to future IFRS 9 updates Solution will be upgraded regularly and will thus cover the relevant future EhP enhancements e.g. additional types of financial instruments All benefits of the cloud: availability, stability, etc.

8 References # 1 Global Insurance Brand - BearingPoint designed and implemented a core SAP FAM solution covering the IFRS accounting requirements of the # 1 Global Insurance Brand, including numerous European and Asian countries International Financial Service Company - BearingPoint designed and implemented a template for a SAP FAM solution covering the IFRS accounting requirements of an international financial service company in the group s largest countries including Germany and France European Insurance Group - BearingPoint designed and implemented a template for a SAP FI/CO/BI and FAM solution covering the IFRS accounting requirements of the entire group including Switzerland, Austria and Germany BearingPoint has designed IT Cloud solutions for a variety of clients including SAP clouds

9 References International financial services provider International insurance group Regional insurance company International reinsurance company European Insurance Group Leading specialist insurer European multi-line insurer Leading credit insurer # 1 Global Insurance Brand International general insurer Design & implementation of standardized accounting, reporting and controlling processes SAP IMA & FI Rollout at several corporate units Implementation of SAP ERP 6.0 /NewGL for Multi-GAAP Financial Service Unit: Corporate Reporting (SAP SEM BCS, BI-IP, Portal) Reinsurance Unit: SAP FI/CO template development and roll out Pre-study to replace a proprietary ERP System by SAP ERP (FI-NewGL, CO, MM) Pre-study to implement SAP FI NewGL Global implementation of SAP FI Design of an End-to-End target architecture and implementation as a hybrid solution based on SAP SEPA implementation in SAP ERP, FS-CD/ICM, CML Design and implementation of a global finance architecture based on SAP NewGL; Standardization and optimization of all finance processes Design and implementation of a global finance architecture based on SAP NewGL, especially economic balance / Solvency II Development of new finance and treasury architecture based on SAP Integrated SAP IMA implementation for all units in Europe New design of an interface architecture between existing and new sub-ledgers to the existing general ledger (Basis SAP) Focus Standardization Financial architecture Interface processor Prototyping Chart of accounts harmonization Solvency II Reporting Fast Close Master Data Management Multi-GAAP Controlling & Planning HANA SEPA

10 < Contact Matthias Hoehne Partner BearingPoint Germany About BearingPoint BearingPoint consultants understand that the world of business changes constantly and that the resulting complexities demand intelligent and adaptive solutions. Our clients, whether in commercial or financial industries or in government, experience real results when they work with us. We combine industry, operational and technology skills with relevant proprietary and other assets in order to tailor solutions for each client s individual challenges. This adaptive approach is at the heart of our culture and has led to long-standing relationships with many of the world s leading companies and organizations. Our global consulting network of 9,700 people serves clients in more than 70 countries and engages with them for measurable results and long-lasting success. For more information, please visit: BearingPoint. All rights reserved