SAP at Allstate Insurance Info Days. November 2007

Transcription

1 SAP at Allstate Insurance Info Days November 2007

2 Allstate at a Glance The nation's largest publicly held personal lines insurer of homes and autos Corporate headquarters is in Northbrook, IL You're In Good Hands With Allstate A Fortune 100 company,$157.5 billion in assets More than 17 million customers in the U.S. and Canada The Allstate Corporation encompasses more than 70,000 professionals with technology operations located around the globe

3 Agenda Why ERP and Why SAP? It s Bigger Than You Think Our SOA Strategy Q & A

4 Why ERP and why SAP? Journey started in late 1996 when SAP was purchased live January 1998 G/L and expense management Standard in Finance organization to promote shared services concept Standardized processes & data Controls Governance Vended vs. custom SAP met all these requirements. They also continue to work with us as a financially stable partner Eventually migrated beyond Finance including ownership within IT and processes which start within the front office and middle office Human resources Claim payments and reserving Business warehouse for financial reporting Agent commission payments Agent sales materials General ledger account reconciliation Executive sponsorship and long term commitment have been key to our progress

5 The Big Picture Process View Financial and HR Transformation Official company books and records Supports regulatory reporting Drives management reporting Expense processing and allocations Employee system of record Fixed asset management General and administrative vendor payments Insurance Transformation Centralized Customer and Claimant payments Custom mobile adjustor solution from SAP Producer system of record and payments Voluntary and involuntary reinsurance programs, payments, billing and collections Working with SAP on US industry requirements for over 5 years partnering with other US firms to add new functionality and share leanings Information Delivery Transformation Data Warehouse Includes: Premiums, Claims, Sales, Expenses, Profit Management, GAAP and statutory detail data mechanically balanced to the general ledger History January 1995 to present for premium and loss data; 2002 to present for sales and expenses Cost (CO) reporting enhancements & linkage Enterprise Procurement spend Real-estate, Investments, Workforce analytics Procurement and Supply Chain Transformation System of record for procure to pay transactions for indirect spend items Travel and expense for over 40,000 employees SRM for maintenance, repair, and operating items Print distribution facility managed through SAP Warehouse Management (WM)

6 Financial and HR Transformation Financial and HR Transformation Official company books and records Supports regulatory reporting Drives management reporting Expense processing and allocations Employee system of record Fixed asset management General and administrative vendor payments Latest Activities Upgraded to ECC 5.0 in 2006, prioritizing new features to implement; Evaluating ECC 6.0 for additional capabilities. Inter Company Reconciliation (ICR) module being rolled out for enterprise general ledger account reconciliations. Over 10,000 accounts in scope (over 30 % complete). HR Business Process Outsourcing; installed MSS and ESS, Performance Management, Succession Management, Salary Administration and Compensation in 8/07. 40,000 employees are managed with this capability Implementing GRC module for segregation of duties management. Go live targeted for Q

7 Insurance Transformation Insurance Transformation Centralized Customer and Claimant payments Custom mobile adjustor solution from SAP Producer system of record and payments Enterprise bank reconciliation engine including escheatment Voluntary and involuntary reinsurance programs, payments, billing and collections Working with SAP on US industry requirements for over 5 years partnering with other US firms to add new functionality and share leanings Latest Activities Continued rollout of centralized claim payment (outbound) processing with bar coding for trailing documents 30,000 disbursements per day from over 150 claim offices Online banking mechanization (Inbound processing) Automated manually intensive process around 3 rd party bank feeds involving customer premium payments; improved match rate from 40 % to 97 % immediately Billing for car dealer credit insurance; $250 M annual premium; rollout begins Q Leverages direct debit service. Upgrading to ECC 6.0 with Q go live (double upgrade) Supplemental reserves (Q3 2007) and storm IBNR (Q4 2007) reserving using claims management

8 Information Delivery Transformation Information Delivery Transformation Data Warehouse Includes: Premiums, Claims, Sales, Expenses, Profit Management, GAAP and statutory detail data mechanically balanced to the general ledger History January 1995 to present for premium and loss data; 2002 to present for sales and expenses Cost (CO) reporting enhancements & linkage Enterprise Procurement spend Real-estate, Investments, Workforce analytics Latest Activities Retire 25 + year old corporate database used for external and management reporting SAP BW contains 7 terabytes of data, 200 standard reports and 120 infospokes Upgrading to Netweaver 2004 version of BW to leverage enhanced reporting Enhance user reporting by merging SAP & non-sap data on the same reports delivery of Internet Planning (IP) tool for technology expense management $ B in annual expenses will be planned in the tool; 250 users in first rollout. Allows for the streamlining of our planning processes from 21 to 5 tasks (76% reduction). Also allows for drill down analysis. Interested in SAP s acquisition of Business Objects how will BO be leveraged across the SAP product line? Will other SAP reporting tools be retired?

9 Procurement and Supply Chain Transformation Procurement and Supply Chain Transformation System of record for procure to pay transactions for indirect spend items Travel and expense for over 40,000 employees SRM for maintenance, repair, and operating items Print distribution facility managed through SAP Warehouse Management (WM) Latest Activities Implementation & Enhancements to Material Ordering for Agents Leveraging SAP Internet Sales (ISA) and Sales and Distribution (SD) live in Q Delivers catalog driven sales materials ordering capability including radio frequency supported goods picking at the Allstate warehouse Improved agent experience, reduced costs, decreased back orders and streamlined the process. 36,000 agents & support staff, 5,000 items available for ordering, 1,800 orders per day

10 Service Oriented Architecture Our strategy is to implement loosely coupled, reusable components to ensure flexibility and the ability to implement new solutions in stages. We continue to look for ways to shorten the real estate between front end customer facing transactions and down stream transaction systems and reporting solutions. Our goal is to maximize delivered SAP services whenever possible; we have had to implement our own custom services in some cases. We have found that our pace of change is ahead of SAP s delivery schedule especially in the insurance space we are expecting this gap to begin to close with ECC 6.0 (enhancement pack 4) We continue to work with SAP on suggestions for delivering and designing services for the financial services industry. We support the Special Interest Group and recommend that this group continue to mature and that SAP increase it s support and understanding of the global insurance requirements

11 SOA Overview for Inbound Cash

12 Evaluating Services end to end cash handling Allstate has dedicated considerable effort to decomposing our various activities around cash handling we have identified 15 different services associated with capabilities around cash processing Authentication Receipt entry Authorization Clearing Etc. We have also done research around various products in this space and we feel that the SAP roadmap will deliver adequate or industry leading capabilities in 14 of the 15 services with the delivery of ECC 6.0, enhancement pack 4 (mid 2008).

13 Other Inbound Cash Initiatives Allstate is leveraging electronic collections mechanisms supported by SAP to improve the efficiency and increase the cash flow of premium processing. Collect policy premium using direct debit Pilot with life policyholders to increase retention and drive more predictable cash flow. Enable credit card collections for policy premium Pilot with commercial policyholders including enabling direct customer (interactive voice recognition) driven payment instructions or agent producer input. B2B processing with mortgagee banks Enable mass collection and clearing of premium receivables on homeowners policies. This supports the sun setting of several legacy collection applications. Consolidate subrogation collections and clearing Focus on personal lines auto business

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