Master Guide

SAP for Insurance

Target Audience
■ Consultants
■ Administrators
■ Others

Customer
Document version 1.4 – May, 2017
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Master Guide SAP for Insurance

History of Changes
Master Guide Version Important Changes
1.0 (January, 2016) Initial version for 2016

4 May 2017
 1 Getting Started

Contents
History of Changes ........................................................................... 4
1 Getting Started ......................................................................... 8
1.1 About this Document .................................................................. 8
1.2 Related Information .................................................................. 12
1.2.1 Planning Information............................................................................................ 12
1.2.2 Further Useful Links............................................................................................. 12
1.2.3 Related Master Guides ......................................................................................... 13
1.3 Further Insurance related Developments ............................... 14
1.3.1 SAP Policyholder Lookup Mobile App ............................................................... 14
1.3.2 SAP Fraud Management ...................................................................................... 14
1.3.3 SAP HANA Live ..................................................................................................... 14
1.3.4 SAP Fiori Apps ..................................................................................................... 14
2. SAP Enhancement Packages ............................................... 15
2.1 Enhancement Package Key Concept ...................................... 15
2.2 Key Facts About Enhancement Packages ............................. 17
2.3 Enhancement Package Implementation ................................. 17
3 Business Scenarios of SAP for Insurance ........................... 20
3.1 SAP Claims Management ......................................................... 20
3.1.1 Claims Handling and Fulfillment ......................................................................... 20
3.1.2 Claims Subrogation/Recovery ............................................................................ 21
3.1.3 Important SAP Notes............................................................................................ 21
3.1.4 Software Component Matrix ................................................................................ 21
3.1.5 Implementation Sequence ................................................................................... 22
3.1.6 Required Support Packages ............................................................................... 23
3.1.7 Overall Upgrade Sequence .................................................................................. 23
3.2 SAP Collections & Disbursements for Insurance .................. 24
3.2.1 Sales Accounting Direct Payer ........................................................................... 24
3.2.2 Sales Accounting Direct Debit and Credit ......................................................... 25
3.2.3 Financial Customer Care ..................................................................................... 26
3.2.4 Important SAP Notes............................................................................................ 26
3.2.5 Software Component Matrix ................................................................................ 27
3.2.6 Implementation Sequence ................................................................................... 27
3.2.7 Required Support Packages ............................................................................... 28
3.2.8 Overall Upgrade Sequence .................................................................................. 28
3.3 SAP Incentive and Commission Management for
Insurance ......................................................................................... 29
3.3.1 Sales Force Management .................................................................................... 29
3.3.2 Important SAP Notes............................................................................................ 30
3.3.3 Software Component Matrix ................................................................................ 31
3.3.4 Implementation Sequence ................................................................................... 31
3.3.5 Required Support Packages ............................................................................... 32
3.3.6 Overall Upgrade Sequence .................................................................................. 32
3.4 Customer Analysis and Marketing (CRM) .............................. 33
3.4.1 Customer Analysis and Marketing ..................................................................... 33

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1 Getting Started

3.4.2 Implementation Sequence ................................................................................... 33

3.5 SAP Financial Asset Management .......................................... 34
3.5.1 Portfolio Management .......................................................................................... 34
3.5.2 Portfolio Accounting ............................................................................................ 36
3.5.3 Portfolio Controlling............................................................................................. 37
3.5.4 Important SAP Notes............................................................................................ 37
3.5.5 Software Component Matrix ................................................................................ 37
3.5.6 Implementation Sequence ................................................................................... 38
3.5.7 Required Support Packages ............................................................................... 38
3.5.8 Overall Upgrade Sequence .................................................................................. 38
3.6 SAP Statutory Reporting for Insurance .................................. 39
3.6.1 Statutory Reporting .............................................................................................. 39
3.6.2 Important SAP Notes............................................................................................ 40
3.6.3 Software Component Matrix ................................................................................ 40
3.6.4 Implementation Sequence ................................................................................... 41
3.6.5 Required Support Packages ............................................................................... 41
3.6.6 Overall Upgrade Sequence .................................................................................. 41
3.7 SAP Policy Management .......................................................... 42
3.7.1 Application Processing and Policy Issuance (New Business) ........................ 43
3.7.2 Mid-Term Policy Changes and Information ....................................................... 44
3.7.3 Policy Maintenance .............................................................................................. 45
3.7.4 Important SAP Notes............................................................................................ 46
3.7.5 Software Component Matrix ................................................................................ 46
3.7.6 Implementation Sequence ................................................................................... 46
3.7.7 Required Support Packages ............................................................................... 47
3.7.8 Overall Upgrade Sequence .................................................................................. 47
3.8 SAP Policy Management Add-On for Auto Insurance ........... 48
3.8.1 Important SAP Notes............................................................................................ 48
3.8.2 Software Component Matrix ................................................................................ 49
3.8.3 Implementation Sequence ................................................................................... 49
3.8.4 Required Support Packages ............................................................................... 49
3.8.5 Overall Upgrade Sequence .................................................................................. 50
3.9 SAP Policy Management Add-On for Group Insurance ........ 51
3.9.1 Important SAP Notes............................................................................................ 51
3.9.2 Software Component Matrix ................................................................................ 52
3.9.3 Implementation Sequence ................................................................................... 52
3.10 SAP Product Lifecycle Management for Insurance ............. 53
3.10.1 Important SAP Notes ......................................................................................... 53
3.10.2 Software Component Matrix .............................................................................. 53
3.10.3 Implementation Sequence ................................................................................. 53
3.10.4 Required Support Packages ............................................................................. 53
3.10.5 Overall Upgrade Sequence ................................................................................ 53
3.11 SAP Underwriting for Insurance ............................................ 54
3.11.1 Important SAP Notes ......................................................................................... 54
3.11.2 Software Component Matrix .............................................................................. 54
3.11.3 Implementation Sequence ................................................................................. 54
3.11.4 Required Support Packages ............................................................................. 54
3.11.5 Overall Upgrade Sequence ................................................................................ 54
3.12 SAP Reinsurance Management ............................................. 55
3.12.1 Important SAP Notes ......................................................................................... 55

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 1 Getting Started

3.12.2 Software Component Matrix .............................................................................. 56

3.12.3 Implementation Sequence ................................................................................. 56
3.12.4 Required Support Packages ............................................................................. 57
3.12.5 Overall Upgrade Sequence ................................................................................ 57
3.13 SAP Insurance Portals and Workplaces ............................... 58
3.14 SAP Insurance Analyzer ......................................................... 59

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1 Getting Started

1 Getting Started
1.1 About this Document
Purpose
This Master Guide is the central starting point for the technical implementation of the
Insurance scenarios that are part of the following applications:
 SAP enhancement package 8 for SAP ERP 6.0, this means in detail:
o SAP Claims Management (FS-CM)
o SAP Collections & Disbursements for Insurance (FS-CD)
o SAP Incentive and Commission Management for Insurance (FS-ICM)
o SAP Financial Asset Management
o SAP Statutory Reporting for Insurance (FS-SR)
 SAP Policy Management 5.3 (FS-PM)
 SAP Policy Management Add-On for Auto Insurance 1.4 (FS-PM-AUTO)
 SAP Policy Management, Group Insurance Add-On 1.0
 SAP Product Lifecycle Management for Insurance 3.0
 SAP Underwriting for Insurance 3.0
 SAP Reinsurance Management 7.0 (FS-RI)
 SAP Insurance Portals and Workplaces 1.0 (FS-IPW)
 SAP Insurance Analyzer 1.0 (FS-IA)
This does not mean that the different applications run together.

Graphic of Overall Insurance Scenarios

In the following graphic, you can see the architecture of the different scenarios of SAP for
Insurance:

8 May 2017
 1 Getting Started

Graphic of SAP Policy Management

In the following graphic, you can see more details on the system landscape of SAP Policy
Management:

SAP recommends to run SAP Policy Management (FS-PM) 5.3 always based on
the last support package available (currently SP04) and together with SAP
enhancement package 7 for SAP ERP 6.0, SP10 (or higher).
In case you use SAP Policy Management for Auto (FS-PM-AUTO) as well, always
ensure that the corresponding FS-PM-AUTO support package is available before you
use the last available FS-PM support package.
You must install SAP Policy Management 5.3 and SAP ERP 6.0 on different SAP
NetWeaver instances.
In case you use two different physical systems, you must ensure that one of the
following conditions apply to the two different physical systems:
 Both physical systems are Unicode systems.
 None of the physical systems is a Unicode system.

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1 Getting Started

Graphic of SAP Insurance Analyzer

In the following graphic, you can see more details on the system landscape of SAP Insurance
Analyzer:

Note the following on the graphic above:

 Nexontis Add-On Solutions
Nexontis Add-On Solutions are deployed as SAP branded Reseller products
SAP Accounting for Insurance Contracts and SAP Sovency Management for
Insurance
 Banking Services from SAP 8.0
SAP banking Services 8.0 has not be licensed separately (is included in SAP
Insurance Analyzer Package)

10 May 2017
 1 Getting Started

The Master Guide is a planning tool that helps you to design your system landscape. It refers
you to the required detailed documentation, mainly:
 Installation guides for single software units
 SAP Notes
Constraints
 The business scenarios that are presented here serve as examples of how you can use
SAP software in your company. The business scenarios are only intended as models and
do not necessarily run the way they are described here in your customer-specific system
landscape. Ensure to check your requirements and systems to determine whether these
scenarios can be used productively at your site. Furthermore, we recommend that you
test these scenarios thoroughly in your test systems to ensure they are complete and free
of errors before going live.
 This Master Guide primarily discusses the overall technical implementation of SAP for
Insurance, rather than its subordinate components. This means that additional software
dependencies might exist without being mentioned explicitly in this document. You can
find more information on component-specific software dependencies in the corresponding
installation guides.

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1 Getting Started

1.2 Related Information

1.2.1 Planning Information
For more information about planning topics not covered in this guide, see the following
content on SAP Service Marketplace:
Content Location on SAP Service Marketplace
Latest versions of installation and upgrade [Link]
guides

General information about SAP for Insurance [Link]

SAP Business Maps - information about [Link]

applications and business scenarios

Sizing, calculation of hardware requirements [Link]

- such as CPU, disk and memory resource -
with the Quick Sizer tool
Released platforms and technology-related [Link]
topics such as maintenance strategies and To access the Platform Availablity Matrix directly,
language support enter [Link]
Network security [Link]

High Availability [Link]

Performance [Link]

Information about Support Package Stacks, [Link]

latest software versions and patch level
requirements
Information about Unicode technology [Link]

1.2.2 Further Useful Links

The following table lists further useful links on SAP Service Marketplace:
Content Location on SAP Service Marketplace
Information about creating error messages [Link]

SAP Notes search [Link]

SAP Software Distribution Center (software [Link]

download and ordering of software)

SAP Online Knowledge Products (OKPs) – [Link]

role-specific Learning Maps

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 1 Getting Started

1.2.3 Related Master Guides

This Master Guide is based on Master Guides for cross-industry applications. You can find
more information about the relevant applications in the following documents:
Title Location
SAP ERP 6.0 [Link] -> SAP
Business Suite Applications -> SAP ERP ->
SAP ERP 6.0 -> Installation -> Master Guide
for SAP ERP 6.0
[Link] -> SAP
Business Suite Applications -> SAP ERP ->
SAP ERP 6.0 -> Operations -> Solution
Operation Guide SAP ERP 6.0
[Link] -> SAP
Business Suite Applications -> SAP ERP ->
SAP ERP 6.0 -> SAP enhancement packages
for SAP ERP 6.0 -> SAP enhancement
package 8 for SAP ERP 6.0 -> Master Guide
SAP enhancement package 8 for SAP ERP
6.0.
SAP NetWeaver 7.50 [Link] -> SAP
NetWeaver -> SAP NetWeaver 7.5
SAP CRM 7.0 You can find the current Master Guide for
SAP CRM on SAP Service Marketplace at
[Link]

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1 Getting Started

1.3 Further Insurance related

Developments
1.3.1 SAP Policyholder Lookup Mobile App
With the SAP Policyholder Lookup mobile app for iPhone, you can access the policy and
claim details of your insurance customers.
You can find more information under the following links:
 Description of Usage
 Administrator’s Guide ([Link] -> SAP Mobile -> SAP
Mobile Applications -> SAP Business Suite -> SAP ERP -> Administrator's Guide for
SAP Policyholder Lookup 1.0.0.)

1.3.2 SAP Fraud Management

SAP Fraud Management helps insurance companies to optimize their combined ratio by
identifying claim frauds and avoid payments on illegitimate claim requests.
You can find more information under [Link]

1.3.3 SAP HANA Live

SAP HANA Live provides predefined database views for HANA that allow real-time access to
data for operational reporting and analytics. It contains views for SAP Claims Management
and SAP Policy Management.
 SAP Claims Management and SAP Collections and Disbursements for Insurance
You can find more information under [Link] -> Application Help ->
SAP HANA Live for EHP4 for SAP ERP -> SAP for Insurance.
 SAP Policy Management
You can find more information under [Link] -> Application Help ->
SAP HANA Live for Policy Management.
 Insurance Cross Topics
You can find more information under [Link] -> Application Help ->
SAP HANA Live for Insurance.

1.3.4 SAP Fiori Apps

You can use SAP Fiori apps for workload management in SAP Claims Management.
You can find more information under [Link] -> SAP Fiori for SAP Business
Suite -> SAP Fiori Products for SAP ERP -> SAP Fiori 1.0 for SAP ERP -> Industries in SAP
ERP -> SAP for Insurance.

14 May 2017
 2. SAP Enhancement Packages

2. SAP Enhancement Packages

This general chapter only applies to the insurance scenarios belonging to SAP
enhancement package 7 for SAP ERP 6.0.

2.1 Enhancement Package Key Concept

We have adapted our major release strategy to better fit your adoption cycle. To ensure that
you benefit from new developments and innovations while minimizing the impact on your core
operational systems, SAP uses enhancement packages to speed up the delivery of new
functions.
With SAP enhancement packages, you can install and activate new functions depending on
your business needs without having to perform a system upgrade.
You can selectively implement the new functions and activate the software upon business
demand. As a result, you can isolate the impact of software updates and make new functions
available faster due to shortened test cycles.
Implementation
There are three different scenarios to implement an enhancement package:
 Installation of an enhancement package on an existing SAP system
 New installation of an SAP system including an enhancement package
 Upgrade of an SAP system including an enhancement package
The installation process of enhancement packages consists of two different steps:
 Technical installation of an enhancement package
 Activation of new functions using the switch framework technology
You have a choice on both levels – installation and activation. You do not need to install a full
enhancement package. Instead, you can update the software components that are related to
the functional enhancements you want to use.
Keep in mind that you cannot mix the installation of different enhancement package
versions in your ABAP-based SAP system. You can have just one enhancement
package version in the SAP system.
From a business point of view, functional enhancements are grouped into business
functions (BFs). The technical installation of the business functions does not change
the system behavior. The new functions are available in the system, but are not
active. After the installation, no user interface or process change takes place. You
must explicitly activate new functions so that they become visible in the system. As a
result, changes are predictable and there are no side effects as only the activated
areas change.
With the switch framework technology (transaction SFW5), it is possible to control the
activation of new SAP objects in ABAP-based SAP systems. The activation process triggers
a background job that automatically performs all changes in the SAP system.

You cannot reverse a business function once it is activated.

After you have activated a business function, you can see the changes and new
developments in the SAP system, for example:
 Menu entries
 New screens
 New fields on the application user interfaces
 IMG activities required for the implementation

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2. SAP Enhancement Packages

 New table entries in Customizing tables and system tables

You can create a transport request with the current settings of the switch framework. You can
check functional changes and the impact of an activated business function in advance in the
business function documentation.
Test the installation and activation on a sandbox system.
Maintenance
SAP enhancement packages have Support Packages of their own that are equivalent to the
Support Package versions of the underlying SAP system. You must install the enhancement
package in combination with the latest available Support Package stack. This approach
reduces installation, modification adjustment, and testing effort. Using this strategy, you can
install SAP enhancement packages as a normal maintenance activity together with Support
Package stacks.
An enhancement package requires a specific Support Package stack level in the source
release SAP system.
If the SAP system is on a lower Support Package stack level, all relevant Support
Package stacks are automatically included into the download queue, as well as the
latest available Support Packages for the enhancement package.
Tools
The enhancement package installation requires the following tools:
 SAP Solution Manager Maintenance Optimizer
Use of SAP Solution Manager is mandatory: Ensure that you have
installed SAP Solution Manager 7.0 EHP1 SP23 or any higher support
package. With respect to update and maintenance processes (for example
transaction SMSY and Maintenance Optimizer), SAP Solution Manager 7.0
EHP1 is sufficient. There is no need to upgrade to SAP Solution Manager
7.1.
Also ensure that you have correctly defined and maintained your system
landscape in SAP Solution Manager (transaction SMSY). To verify and
potentially correct your system landscape, SAP highly recommends using
Landscape Verification 1.0 for SAP Solution Manager 7.0, which is an add-on
to your SAP Solution Manager 7.0 system. This add-on allows you to identify
and correct issues in your SAP Solution Manager landscape (transaction
SMSY) before they cause problems, for example, during a system update.
Examples for errors are a missing connection to the System Landscape
Directory or the wrong assignment of products to technical systems. For
each type of error, a generic description how to solve it is provided.
Before installing the enhancement package, we recommend that you
install the landscape verification add-on to check your landscape set-up and
data (transaction SMSY) and to correct it if necessary.
 Installation or upgrade tools (depending on your scenario)
The SAP Solution Manager Maintenance Optimizer (accessible from the Change
Management work center) supports the download of a consistent queue that includes all
necessary Support Packages and enhancement packages. In addition, SAP Solution
Manager calculates a valid import queue for the selected SAP system and generates the
enhancement package stack configuration file that you require for the installation.
For the new installation of an SAP system including enhancement package as well as for the
upgrade of an SAP system to a higher release including an enhancement package, you use
the standard installation and upgrade tools (SAPinst, SAPup and SAPJup). To install an
enhancement package on an existing SAP system, you use the SAP Enhancement Package
Installer (SAPehpi). It allows enhancement packages to be installed with reduced downtime.
SAPehpi uses the shadow system installation strategy, a well-known feature in the upgrade
technology.

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 2. SAP Enhancement Packages

2.2 Key Facts About Enhancement

Packages
The following list summarizes important facts about the enhancement package concept and
recommended approaches:
 Install only selected parts of the enhancement package. The selection is driven by
the functional need from a business point of view.
 You cannot mix the installation of different enhancement package versions in your
ABAP-based SAP system. You can have just one enhancement package version in
the SAP system. This means, if you have already updated technical usages to a
previous EHP you need to apply the current EHP to those components as well.
 SAP enhancement packages are cumulative, meaning that each new enhancement
package includes new innovations of its own as well as all innovations delivered with
prior packages.
 We recommend installing the latest available enhancement package version.
 Install enhancement packages and Support Packages in one single step (this
includes the preconditioned Support Packages).
 SAP enhancement packages have Support Packages of their own that are equivalent
to the Support Package versions of the underlying SAP system.
 SAP enhancement packages have the same maintenance period as the underlying
core application.
 The installation of an enhancement package is irreversible.
 As long as you do not activate a business function, the installation of an
enhancement package has no impact on existing business processes or user
interfaces.
You can only activate business functions in ABAP-based systems, not in Java-based
SAP systems.
 The activation of most business functions and extension sets is irreversible. Only a
small number of business functions is reversible.
Test the installation process and activation of new functions in advance on a sandbox
system. Ensure that you evaluate the runtime and the SAP system behavior, its
dependencies and impacts. Make sure that your SAP system is free of errors before
going live.

2.3 Enhancement Package Implementation

In the following section, you will find an overview of the steps involved in the three different
enhancement package implementation scenarios.
Enhancement Package Installation in an Existing SAP System
Process
1. You choose which of the new functions are interesting for your business.
2. You analyze the landscape dependencies.
3. You identify the enhancement package you want to install.
4. You make sure that you have set up your SAP Solution Manager system for the
download of packages, and that the Maintenance Optimizer is configured.
5. You download the installation queue.

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2. SAP Enhancement Packages

6. You perform the installation.

7. You analyze the impact of the business function activation with the dependency
analyzer and impact analyzer (transaction SFW5).
8. You activate the business functions.
9. You perform additional Customizing, if necessary.
10. You test the new functions.
Tools
 SAP Solution Manager Maintenance Optimizer (mandatory)
 Software Update Manager (SUM)
 Switch framework with Dependency Analyzer and Impact Analyzer in SAP Solution
Manager (transaction SFW5)

New Installation of an SAP System with Enhancement Packages

Process
1. You install the SAP system.
The installation of SAP ERP 6.0 including enhancement package 6 comprises the
technical usage Central Applications. The installation of the technical usage Central
Applications implies that the system is ready for use without installing any further
technical usages. Of course, you can optionally install additional technical usages.
2. If you want to install further technical usages:
a. You identify the relevant installable parts of the enhancement package.
b. You make sure that you have set up your SAP Solution Manager system for
the download of packages, and that you have configured the Maintenance
Optimizer.
c. You download the installation queue.
d. You perform the installation.
e. You activate the business functions using the switch framework (transaction
SFW5).
3. You perform the Customizing for the SAP system.
4. You test the SAP system.

Tools
 Standard Installation tool SAPinst
 Software Update Manager (SUM) or SAINT to install additional technical usages
In this scenario, you can use transaction SAINT for installing additional technical
usages, because software component SAP_APPL 6.05 is already present in your system
(part of technical usage Central Applications). This is a prerequisite for using SAINT.
 Switch framework with Dependency Analyzer and Impact Analyzer in SAP Solution
Manager (transaction SFW5)
Upgrade to an SAP System Including an Enhancement Package
Installation
Customers who are upgrading from a lower release to an SAP system for which
enhancement packages are available can include parts of enhancement packages into the
upgrade process.
The use of SAP Solution Manager Maintenance Optimizer is mandatory if you
want to include enhancement packages in your release upgrade.

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 2. SAP Enhancement Packages

Process
1. You plan the upgrade to the new release. Decide which parts of the enhancement
package you want to include into the upgrade procedure before you start with the
upgrade.
2. You identify the relevant installable parts of the enhancement package.
3. You make sure that you have set up your SAP Solution Manager system for the
download of packages, and that you have configured the Maintenance Optimizer.
4. You download the required parts of enhancement packages and Support Packages
as well as the enhancement package stack configuration file.
5. You perform the upgrade including parts of the enhancement package.
The upgrade program asks if you want to include parts of an enhancement package
into the upgrade process.
6. You activate the business functions using the switch framework (transaction SFW5).
7. You perform the delta Customizing for the SAP system.
8. You test the SAP system.
Tools
 Standard upgrade tools (SAPup and SAPJup)
 SAP Solution Manager Maintenance Optimizer

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3 Business Scenarios of SAP for Insurance

3 Business Scenarios of SAP for

Insurance
3.1 SAP Claims Management
SAP Claims Management contains the following Business Scenarios:
 Claims Handling and Fulfillment
 Claims Subrogation/Recovery

3.1.1 Claims Handling and Fulfillment

Overview
Insurance companies or service providers to insurance companies can use this business
scenario to capture, process, evaluate, adjust, and settle claims.
The following lines of business are supported:
 Automobile
 Property insurance (home contents)
 Liability insurance
 Accident insurance
 Health insurance
 Life insurance
Note: With SAP ERP enhancement package 2005.1, this scenario has introduced two new
roles (these roles are also available with enhancement package 2005.3):
 Claim Center Agent
 Claim Handler
You can find detailed information on SAP Service Marketplace at
[Link]/instguides  SAP Business Suite Applications  SAP ERP  SAP
ERP 6.0  SAP enhancement packages for SAP ERP 6.0  SAP enhancement package 1
for SAP ERP 6.0  Master Guide SAP enhancement package 1 for SAP ERP 6.0, chapter
4.4.2, 5.3 and 5.4.1.
Technical System Landscape
For more information about the technical system landscape of this scenario, see SAP Service
Marketplace at [Link]/scl  Start application  SAP Scenarios and
Realisation Alternatives  SAP for Insurance.
Further Information
The following documents provide more information about Claims Handling and Fulfillment.
Content Location
Scenario Description See the documentation in SAP Solution Manager.
Security Guide SAP for For more information, see SAP Service Marketplace at
Insurance [Link] ->
Industry Solutions -> SAP for Insurance.

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 3 Business Scenarios of SAP for Insurance

3.1.2 Claims Subrogation/Recovery

Overview
If you are an insurance company or a service provider for an insurance company, you can
use this business scenario to reduce expenditure involved in a claim by identifying
subrogation/recovery potential at an early stage in claims processing and by triggering the
appropriate recovery measures.
Typical subrogation/recovery situations:
 Contractual subrogation/recovery
 Equitable subrogation/recovery
 Subrogation/recovery due to breach of obligations
 Recovery of deductibles
 Loss allocation agreements
Technical System Landscape
For more information about the technical system landscape of this scenario, see SAP Service
Marketplace at [Link]/scl  Start application  SAP Scenarios and
Realisation Alternatives  SAP for Insurance.

Further Information
The following documents provide more information about Claims Subrogation/Recovery.
Content Location
Scenario Description See the documentation in SAP Solution Manager.
Scenario Security Guide For more information, see SAP Service Marketplace at
[Link]

3.1.3 Important SAP Notes

Not applicable

3.1.4 Software Component Matrix

Business Scenario Software Components
Claims Handling and Fulfillment INSURANCE 618
XI CONTENT INSURANCE 618
Business Package ERP CLAIM CENTER AGENT 1.30
Business Package ERP CLAIM HANDLER 1.30
SAP APPL 618
SAP ABA 750
SAP BASIS 750
SAP_BW 750
Subrogation/Recovery See above

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3 Business Scenarios of SAP for Insurance

3.1.5 Implementation Sequence

Required NetWeaver Release: SAP NetWeaver 7.50

Step Action Remarks/Subsequent Steps

[Required Documentation]
1 SAP ERP 6.0
For more information about the installation,
see SAP Service Marketplace under
[Link] -> SAP
Business Suite Applications -> SAP ERP ->
SAP ERP 6.0 -> Installation -> Master
Guide for SAP ERP 6.0.

2 SAP enhancement package 8 for SAP Installing the required

ERP 6.0 languages.
For more information about the installation, Guide: Language Transport,
see SAP Service Marketplace under (BC-CTS-LAN)
[Link]  SAP
Business Suite Applications  SAP ERP 
SAP ERP 6.0  SAP enhancement
packages for SAP ERP 6.0  SAP
enhancement package 8 for SAP ERP 6.0
 Master Guide SAP enhancement
package 8 for SAP ERP 6.0.
3 SAP for Insurance 618 Activate Business Function Set
Insurance in enhancement
package 8 for SAP ERP 6.0.

22 May 2017
 3 Business Scenarios of SAP for Insurance

3.1.6 Required Support Packages

Software Component Support Package
SAP ABA 750 00
SAP BASIS 750 00
SAP APPL 618 SAPK-61801INSAPAPPL
SAP_BW 750 00
INSURANCE 618 SAPK-61801ININSURANC
These software packages need to be installed in the listed order as a basis for ERP 6.0
installations. After performing the installation steps, use the IMG for configuration.

3.1.7 Overall Upgrade Sequence

This chapter is only relevant for you if you run an SAP ERP system with a version lower than
ERP 6.0. In this case, we recommend that you combine the upgrade with the implementation
of SAP enhancement packages.
For more information, see [Link] -> SAP Business Suite
Applications -> SAP ERP -> SAP ERP 6.0 -> Upgrade.

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3 Business Scenarios of SAP for Insurance

3.2 SAP Collections & Disbursements for

Insurance
SAP Customer Billing and Payments contains the following business scenarios:
 Sales Accounting Direct Payer
 Sales Accounting Direct Debit and Credit
 Financial Customer Care

3.2.1 Sales Accounting Direct Payer

Overview
Insurance companies can use this business scenario to process premium payments that
have been initiated directly by insurance customers.
You create an invoice and send this to the insurance customers. The customer then pays this
invoice amount, with a bank transfer or check. The customer can also pay the invoice
electronically, using the Internet, if you offer an appropriate portal.
The system provides all functions required to process these incoming payments
automatically. The processes include reading an electronic account statement from the bank
and all processes up to the assignment of the incoming payment to open items. The system
supports various incoming payment forms.
If no incoming payment exists within the specified payment deadline, you can generate a
dunning notice and start the dunning process.

Technical System Landscape

For more information about the technical system landscape of this scenario, see SAP Service
Marketplace at [Link]/scl  Start application  SAP Scenarios and
Realisation Alternatives  SAP for Insurance.

Further Information
The following documents provide more information about Sales Accounting Direct Payer.
Content Location
Scenario Description See the documentation in SAP Solution Manager.
Scenario Security Guide For more information, see SAP Service Marketplace at
[Link]

24 May 2017
 3 Business Scenarios of SAP for Insurance

3.2.2 Sales Accounting Direct Debit and Credit

For this business scenario, the following topics are covered:
 Overview
 Technical system landscape
 Overview of the implementation sequence

Overview
Insurance companies can use this business scenario to initiate and process incoming and
outgoing payments.
Incoming payments such as premiums are demanded from customers, in the form of
automatic debits, debit memo procedures or payment cards. You can initiate disbursements,
such as commission, with a bank transfer or check.
The system provides all functions necessary to process incoming and outgoing payments like
this in a timely fashion: It determines and processes open items and transfers the appropriate
data to the bank. If it is not possible to execute an incoming or outgoing payment (returns),
the system automatically starts follow-up activities.
Technical System Landscape
For more information about the technical system landscape of this scenario, see SAP Service
Marketplace at [Link]/scl  Start application  SAP Scenarios and
Realisation Alternatives  SAP for Insurance.

Further Information
The following documents provide more information about Sales Accounting Direct Debit and
Credit.
Content Location
Scenario Description See the documentation in SAP Solution Manager.
Scenario Security Guide For more information, see SAP Service Marketplace at
[Link]

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3 Business Scenarios of SAP for Insurance

3.2.3 Financial Customer Care

Overview
Insurance companies can use this business scenario to deal with financial-related
communication with their customers via an Interaction Center.
This scenario enables an Interaction Center agent to respond directly to customers of your
insurance company about financial inquiries such as:
- Invoices that the customer received
- Customer account balance
- Payments made by the customer
- Dunning notices that the customer received
In addition to these information functions, the Interaction Center agent can also perform the
following transactions for the customer:
- Display, create, or change master data
- Display, create, or change bank details and credit card information
- Accept payments and create or change payment conditions, such as installment
plans and promises to pay
- Defer items
- Cancel dunning notices
- Process clarification cases
- Create and delete processing locks so that certain items cannot be processed further
Technical System Landscape
For more information about the technical system landscape of this scenario, see SAP Service
Marketplace at [Link]/scl  Start application  SAP Scenarios and
Realisation Alternatives  SAP for Insurance.

Further Information
The following documents provide more information about Financial Customer Care.
Content Location
Scenario Description See the documentation in SAP Solution Manager.
Scenario Security Guide For more information, see SAP Service Marketplace at
[Link]

3.2.4 Important SAP Notes

The following SAP Note applies to all scenarios of SAP Collections & Disbursements for
Insurance.
SAP Note Number Title

877945 Release strategy for INSURANCE as of ECC 6.0

26 May 2017
 3 Business Scenarios of SAP for Insurance

3.2.5 Software Component Matrix

Business Scenario Software Components
Sales Accounting Direct Payer INSURANCE 618
FI-CA 618
SAP APPL 618
SAP_BS_FND 748
Sales Accounting: Direct Debit See Business Scenario Sales Accounting Direct Payer.
and Credit
Financial Customer Care INSURANCE 618
FI-CA 618
SAP APPL 618
SAP_BS_FND 748
SAP CRM 2007 EHP2

3.2.6 Implementation Sequence

Required NetWeaver Release: SAP NetWeaver 7.50

Step Action Remarks/Subsequent Steps

[Required Documentation]
1 SAP ERP 6.0
For more information about the installation,
see SAP Service Marketplace under
[Link] -> SAP
Business Suite Applications -> SAP ERP ->
SAP ERP 6.0 -> Installation -> Master
Guide for SAP ERP 6.0.

2 SAP enhancement package 8 for SAP Installing the required

ERP 6.0 languages.
For more information about the installation, Guide: Language Transport,
see SAP Service Marketplace under (BC-CTS-LAN)
[Link] -> SAP
Business Suite Applications  SAP ERP 
SAP ERP 6.0  SAP enhancement
packages for SAP ERP 6.0  SAP
enhancement package 8 for SAP ERP 6.0
 Master Guide SAP enhancement
package 8 for SAP ERP 6.0.
3 SAP for Insurance 618 Activate Business Function Set
Insurance in enhancement
Package 8 for SAP ERP 6.0.

May 2017
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3 Business Scenarios of SAP for Insurance

3.2.7 Required Support Packages

Software Component Support Package
SAP ABA 750 00
SAP BASIS 750 00
SAP APPL 618 SAPK-61801INSAPAPPL
SAP_BW 750 00
SAP_BS_FND 748 00
INSURANCE 618 SAPK-61801ININSURANC
FI-CA 618 SAPK-61801INFICA
These software packages need to be installed in the listed order as a basis for ERP 6.0
installations. After performing the installation steps, use the IMG for configuration.

3.2.8 Overall Upgrade Sequence

This chapter is only relevant for you if you run an SAP ERP system with a version lower than
ERP 6.0. In this case, we recommend that you combine the upgrade with the implementation
of SAP enhancement packages.
For more information, see [Link] -> SAP Business Suite
Applications -> SAP ERP -> SAP ERP 6.0 -> Upgrade.

28 May 2017
 3 Business Scenarios of SAP for Insurance

3.3 SAP Incentive and Commission

Management for Insurance
SAP Incentive and Commission Management for Insurance contains the following business
scenario:
 Sales Force Management

3.3.1 Sales Force Management

Overview
Insurance products are sold through a number of distribution channels. Particularly for
products such as life insurance that rely on verbal communication with customers, a
dedicated sales force is required. The Sales Force Management scenario focuses on this
particular distribution channel.
Insurance companies use this business scenario to reproduce their sales structures and set
up flexible incentive systems. You use standard agreements as the basis for creating
individual agreements and settling commission cases.
SAP Incentive and Commission Management for Insurance provides all the functions to
enable you to flexibly map your sales organization. Clerks and commission recipients are
assigned to their corresponding units. You define and maintain standard agreements for
commission contracts and determine the basis for calculating participations, valuations,
remuneration, settlement, liability and guarantees. From these, you derive individual
agreements for the calculation of commission cases.
Credentialing helps you in setting up and managing for your sales partners the credentials
that are required in the context of legal regulations or other needs. With portfolio assignment,
you manage the relationships between your sales force and your customers or insurance
policy portfolio (Book of Business).

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3 Business Scenarios of SAP for Insurance

Technical System Landscape

The Incentive and Sales Force Management scenario, consisting of Incentive and
Commission Management, Portfolio Assignment, and Credentialing, may be implemented
with an enterprise portal installed on the same or a different instance. Open and pre-
configured interfaces enable the connection to further SAP components or third-party
systems on the same or different instances.

Further Information
The following documents provide more information about Sales Force Management.
Content Location
Scenario Description See the documentation in SAP Solution Manager.
Scenario Security Guide For more information, see SAP Service Marketplace at
[Link]

3.3.2 Important SAP Notes

SAP Note Number Title

627015 Product and release strategy of the SAP ICM and the SAP
FS-CM
591526 Support Packages, upgrades, jump upgrades in ICM

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 3 Business Scenarios of SAP for Insurance

3.3.3 Software Component Matrix

Business Scenario Software Components
Sales Force Management EA-APPL 618
Additionally one of the following software component
combinations:
 ERP Portal including Business Packages 6.18
SAP NetWeaver – PI & XI content Insurance
6.17
 PFCG roles
SAP NetWeaver Business Client for Desktop /
for HTML v3.0

3.3.4 Implementation Sequence

Required NetWeaver Release: SAP NetWeaver 7.50

Step Action Remarks/Subsequen

[Required Documentation] t Steps

1 SAP ERP 6.0

For more information about the installation, see
SAP Service Marketplace under
[Link] -> SAP Business
Suite Applications -> SAP ERP -> SAP ERP 6.0 ->
Installation -> Master Guide for SAP ERP 6.0.

2 SAP enhancement package 8 for SAP ERP 6.0 Installing the required
For more information about the installation, see languages.
SAP Service Marketplace under Guide: Language
[Link] -> SAP Business Transport, (BC-CTS-
Suite Applications  SAP ERP  SAP ERP 6.0  LAN)
SAP enhancement packages for SAP ERP 6.0 
SAP enhancement package 8 for SAP ERP 6.0 
Master Guide SAP enhancement package 8 for
SAP ERP 6.0.
3 a) a) Install SAP NetWeaver – Process
Deploymen Integration and XI content Insurance 618
t option 1: b) Install ERP Portal including the following
Roles Business Packages:
based on
Enterprise  BPIS7ICMPT 1.51
Portal  BPIS7FSSRI 1.51
 BPIS7ICMAL 1.51
 BPIS7FSSAL 1.51
 BPIS7CRDM 1.41
 BPIS7FSCM 1.41

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3 Business Scenarios of SAP for Insurance

3 b) a) Install SAP NetWeaver Business Client

Deploymen (NWBC) for Desktop 3.0 or NWBC for
t option 2: HTML 3.0
Roles b) Install the following PFCG Roles:
based on
NetWeaver  SAP_SR_ICM_SALES_AL_INS_5
Business  SAP_SR_ICM_SALES_REP_INS_5
Client  SAP_SR_CREDENTIALS_MNG_INS_
5

3.3.5 Required Support Packages

Software Component Support Package
SAP APPL 618 -
SAP ABA 750 -
SAP BASIS 750 -
SAP_BW 750 -
FS-ICM 618 -
These software packages need to be installed in the listed order as a basis for ERP 6.0
installations. After performing the installation steps, use the IMG for configuration.

3.3.6 Overall Upgrade Sequence

This chapter is only relevant for you if you run an SAP ERP system with a version lower than
ERP 6.0. In this case, we recommend that you combine the upgrade with the implementation
of SAP enhancement packages.

For more information, see [Link] -> SAP Business Suite

Applications -> SAP ERP -> SAP ERP 6.0 -> Upgrade.

32 May 2017
 3 Business Scenarios of SAP for Insurance

3.4 Customer Analysis and Marketing

(CRM)
Customer Analysis and Marketing (CRM) contains the following business scenario:
 Customer Analysis and Marketing

3.4.1 Customer Analysis and Marketing

Overview
Insurance companies can use this business scenario to conduct their closed loop marketing
and campaign management.
The analytical findings can help you to identify valuable customers, lucrative cross-selling
potential, and attractive market/customer segments. You can then contact customers directly
through campaigns. These campaigns will usually be multi-level promotional efforts that are
performed through different distribution channels (or centrally/decentralized, for example).
Campaigns can also be automated (depending on the relevant response behavior, for
example). You can monitor the reaction behavior and the success of the campaign, and
introduce further measures as necessary. The system consolidates the campaign results and
compares the results at the level of the overall marketing plan.
mySAP Customer Relationship Management, in conjunction with SAP BW and SAP R/3,
provides all functions required to map closed loop marketing and campaign management.
Technical System Landscape
You can find detailed information in the current Master Guide for SAP CRM on SAP Service
Marketplace at [Link]

Further Information
The following documents provide more information about Customer Analysis and Marketing.
Content Location
Scenario Description See the documentation in SAP Solution Manager.
Scenario Security Guide For more information, see SAP Service Marketplace at
[Link]

3.4.2 Implementation Sequence

You can find detailed information in the current Master Guide for SAP CRM on SAP Service
Marketplace at [Link]

May 2017
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3 Business Scenarios of SAP for Insurance

3.5 SAP Financial Asset Management

SAP Financial Asset Management contains the following business scenarios:
 Portfolio Management
 Portfolio Accounting
 Portfolio Controlling

SAP Financial Asset Management (SAP FAM) is a solution for the management and controlling
of an insurance company’s financial investments.
The solution covers investments in a broad range of financial instruments in the areas of money
markets, securities, loans, foreign exchange and derivatives. The management process for
these instruments ranges from the initial entry of financial transactions all the way to general
ledger accounting.
The controlling element of the solution automatically retrieves all information about financial
assets and liabilities available within the system. In addition, financial market data such as
interest or exchange rates are imported from market data providers. Based on this
information, the solution carries out analyses of market risk, default risk and performance
associated with the company’s financial assets and liabilities. It also offers a flexible limit
management solution.

3.5.1 Portfolio Management

Overview
Portfolio Management encompasses operative control of the funds invested by your
insurance company in the various portfolios. Taking the investment strategy and liquidity
restrictions into account, trading decisions are derived and put into practice to optimize risk
and expected return for the portfolio under analysis.
You can analyze the current portfolio structure, as well as corresponding risks, returns, and
liquidity constraints. Based on these results, you can derive trading decisions and enter
closed financial contracts into the system.
Technical System Landscape
Modules contained in the solution:
 Treasury and Risk Management - Transaction Manager (FIN-FSCM-TRM-TM)
SAP Transaction Manager covers the operative management and subledger
accounting for securities, money market instruments, foreign exchange and
derivatives.
 Treasury and Risk Management - Market Risk Analyzer (FIN-FSCM-TRM-MR)
SAP Market Risk Analyzer is used for the analysis of market risk the company is
exposed to due to its holdings of financial assets and liabilities
 Treasury and Risk Management - Credit Risk Analyzer (FIN-FSCM-TRM-CR)
SAP Credit Risk Analyzer is used for the analysis of credit risk the company is exposed
to due to its holdings of financial assets and also includes a limit management system.
 Treasury and Risk Management - Portfolio Analyzer (FIN-FSCM-TRM-PA)
SAP Portfolio Analyzer is used for the analysis of financial performance of the financial
assets held by the company.
 Financial Services - Loans Management (FS-CML)
SAP Loans Management covers the operative management and subledger accounting
for mortgage loans, policy loans, promissory note loans and other loans.

34 May 2017
 3 Business Scenarios of SAP for Insurance

All these modules are integrated to operate together in real-time. The solution is furthermore
integrated with the adjacent SAP solutions such as SAP FI ClassicGL, FI-SL, FI-NewGL, SAP
Cash Management and the SAP Financial Services Business Partner (FS-BP).
In addition, standard data extraction to SAP BI is available for SAP Transaction Manager and
SAP Loans Management.
Further Information
The following documents provide more information about Portfolio Management.
Content Location
Scenario Description See the documentation in SAP Solution Manager.
Scenario Security Guide For more information, see SAP Service Marketplace at
[Link]

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3 Business Scenarios of SAP for Insurance

3.5.2 Portfolio Accounting

Overview
Portfolio Accounting enables you to perform follow-up processing of the financial transactions
that your company has concluded in Portfolio Management. Processes include back-office
activities such as settlement, correspondence processing, interest rate fixings, payment
processing and reflection of corporate actions, as well as the entire area of subledger
accounting.
The subledger accounting activities related to financial investments of your insurance
company form the core element of Portfolio Accounting. They include initial recognition of
financial transactions, automatic valuations and period-end processing and de-recognition of
disinvested positions along with calculation of all realized gains/losses.
In Portfolio Accounting, an arbitrary number of accounting standards can be set up in parallel.
The accounting rules engine is highly flexible, allowing for the reflection of a large range of
national as well as international accounting standards.
Portfolio Accounting is fully integrated with SAP general ledger solutions. Accounting-relevant
information is transferred automatically to general ledger accounting and is thus available for
consolidation processes.
Technical System Landscape
See Business Scenario Portfolio Management.
Further Information
The following documents provide more information about Portfolio Accounting.
Content Location
Scenario Description See the documentation in SAP Solution Manager.
Scenario Security Guide For more information, see SAP Service Marketplace at
[Link]

36 May 2017
 3 Business Scenarios of SAP for Insurance

3.5.3 Portfolio Controlling

Overview
You can use this business scenario to monitor the financial assets held by your insurance
company with regard to market risk, credit risk, financial performance and compliance to
internal or regulatory limits.
Analysis of market risk and financial performance is carried out along freely definable
portfolio hierarchies. Risk can be evaluated based on current market data or on hypothetical
market data scenarios that can be defined.
New transactions and changes to financial transactions/positions carried out in Portfolio
Management and Portfolio Accounting are automatically transferred to Portfolio Controlling.
Vice versa, net present values calculated in Portfolio Controlling can be used for fair-value
based accounting valuations carried out in Portfolio Accounting. To ensure full data
consistency, the same market data is used for both accounting and controlling.
Technical System Landscape
See Business Scenario Portfolio Management.
Further Information
The following documents provide more information about Portfolio Controlling.
Content Location
Scenario Description See the documentation in SAP Solution Manager.
Scenario Security Guide For more information, see SAP Service Marketplace at
[Link]

3.5.4 Important SAP Notes

Not applicable

3.5.5 Software Component Matrix

Business Scenario Software Components
Portfolio Management SAP_ABA 750
SAP_BASIS 750
SAP_APPL 618
EA-FINSERV 618
Portfolio Accounting See Business Scenario Portfolio Management.
Portfolio Controlling See Business Scenario Portfolio Management.

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3 Business Scenarios of SAP for Insurance

3.5.6 Implementation Sequence

Required NetWeaver Release: SAP NetWeaver 7.50

Step Action Remarks/Subsequent Steps

[Required Documentation]
1 SAP ERP 6.0
For more information about the installation,
see SAP Service Marketplace under
[Link] -> SAP
Business Suite Applications -> SAP ERP ->
SAP ERP 6.0 -> Installation -> Master Guide
for SAP ERP 6.0.

2 SAP enhancement package 8 for SAP ERP Installing the required

6.0 languages.
For more information about the installation, Guide: Language Transport,
see SAP Service Marketplace under (BC-CTS-LAN)
[Link] -> SAP
Business Suite Applications  SAP ERP 
SAP ERP 6.0  SAP enhancement
packages for SAP ERP 6.0  SAP
enhancement package 8 for SAP ERP 6.0 
Master Guide SAP enhancement package 8
for SAP ERP 6.0.

3.5.7 Required Support Packages

Software Component Support Package
SAP APPL 618 -
SAP ABA 750 -
SAP BASIS 750 -
SAP_BW 750 -
These software packages need to be installed in the listed order as a basis for ERP 6.0
installations. After performing the installation steps, use the IMG for configuration.

3.5.8 Overall Upgrade Sequence

This chapter is only relevant for you if you run an SAP ERP system with a version lower than
ERP 6.0. In this case, we recommend that you combine the upgrade with the implementation
of SAP enhancement packages.
For more information, see [Link] -> SAP Business Suite
Applications -> SAP ERP -> SAP ERP 6.0 -> Upgrade.

38 May 2017
 3 Business Scenarios of SAP for Insurance

3.6 SAP Statutory Reporting for Insurance

SAP Statutory Reporting for Insurance contains the following business scenario:
 Statutory Reporting with the following country-specific variants
 Regulatory reporting for all insurance companies that are permitted for direct
insurance business in Germany
 Regulatory reporting pension funds in Germany

3.6.1 Statutory Reporting

Overview
You can use this business scenario to map statutory reporting for insurance companies. The
legal changes published by the German Federal Financial Supervisory Authority (BaFin) in
the form of a newsletter form the basis for the reporting obligations of insurance companies to
the BaFin.
Technical System Landscape
Module contained in the solution:
 SAP Statutory Reporting for Insurance (FS-SR)
SAP Statutory Reporting for Insurance is used for the generation of specific reports
required by regulatory authorities.1
The assets of the supplying systems are contained in the modules Transaction Manager
(FIN-FSCM-TRM-TM) and Loans Management (FS-CML). Note that the real estate objects
have to be created originally in SAP Real Estate Management (RE-FX).
For more information about the technical system landscape of this scenario, see SAP Service
Marketplace at [Link]/scl  Start application  SAP Scenarios and
Realisation Alternatives  SAP for Insurance.
Further Information
The following documents provide more information about Statutory Reporting.
Content Location
Scenario Description See the documentation in SAP Solution Manager.
Scenario Security Guide For more information, see SAP Service Marketplace at
[Link]

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3 Business Scenarios of SAP for Insurance

3.6.2 Important SAP Notes

SAP Note Number Title

1664730 FS-SR S06/2011 Dokumentation ISSR_SPEC_ASSET

2304460 ISSR: Asset mix without residual restricted assets

2128104 BaFin: Anlage Streuung: Sicherungs- und

Gesamtvermögen
2304306 ISSR: Data Protection and Privacy (DPP)

3.6.3 Software Component Matrix

Business Scenario Software Components
Statutory Reporting SAP Statutory Reporting (FS-SR)
Note: Country specific content for FS-SR standard
delivery is only available for the FISA (Federal
Insurance Supervisory Agency) requirements in the
capital asset sector for Germany and Austria. Country
specific content for other countries is available by
external software partners that have to be licensed
separately. For details, please contact your account
manager.
Further components:
Loans Management (FS-CML)
Real Estate Management (IS-RE) (optional)
Asset Accounting (FI-AA) (optional)
SAP_ABA 750
SAP_BASIS 750
SAP_APPL 618
EA-FINSERV 618
Country Specific Components:
FS-SR-AT 618

40 May 2017
 3 Business Scenarios of SAP for Insurance

3.6.4 Implementation Sequence

Required NetWeaver Release: SAP NetWeaver 7.50

Step Action Remarks/Subsequent Steps

[Required Documentation]
1 SAP ERP 6.0
For more information about the installation,
see SAP Service Marketplace under
[Link] -> SAP
Business Suite Applications -> SAP ERP ->
SAP ERP 6.0 -> Installation -> Master Guide
for SAP ERP 6.0.

2 SAP enhancement package 8 for SAP ERP Installing the required

6.0 languages.
For more information about the installation, Guide: Language Transport,
see SAP Service Marketplace under (BC-CTS-LAN)
[Link] -> SAP
Business Suite Applications  SAP ERP 
SAP ERP 6.0  SAP enhancement
packages for SAP ERP 6.0  SAP
enhancement package 8 for SAP ERP 6.0 
Master Guide SAP enhancement package 8
for SAP ERP 6.0.

3.6.5 Required Support Packages

Software Component Support Package
SAP APPL 618 -
SAP ABA 750 -
SAP BASIS 750 -
SAP_BW 750 -
FS-SR 618 -
These software packages need to be installed in the listed order as a basis for ERP 6.0
installations. After performing the installation steps, use the IMG for configuration.

3.6.6 Overall Upgrade Sequence

This chapter is only relevant for you if you run an SAP ERP system with a version lower than
ERP 6.0. In this case, we recommend that you combine the upgrade with the implementation
of SAP enhancement packages.
For more information, see [Link] -> SAP Business Suite
Applications -> SAP ERP -> SAP ERP 6.0 -> Upgrade.

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3 Business Scenarios of SAP for Insurance

3.7 SAP Policy Management

SAP recommends to run SAP Policy Management (FS-PM) 5.3 always based on
the last support package available (currently SP04) and together with SAP
enhancement package 7 for SAP ERP 6.0, SP10 (or higher).
In case you use SAP Policy Management for Auto (FS-PM-AUTO) as well, always
ensure that the corresponding FS-PM-AUTO support package is available before you
use the last available FS-PM support package.

SAP Policy Management contains the following business scenarios:

 Application Processing and Policy Issuance
 Mid-Term Policy Changes and Information
 Policy Maintenance

Further Information
The following documents provide more information about SAP Policy Management.
Content Location
Scenario Description See the documentation in SAP Solution Manager.
Installation Guide For more information, see SAP Policy Management ->
<Current Release> -> Installation and Upgrade
Information -> Installation Guide.
Upgrade Guide For more information, see SAP Help Portal at SAP Policy
Management -> <Current Release> -> Installation and
Upgrade Information -> Upgrade Guide.
Security Guide For more information, see SAP Help Portal at SAP Policy
Management -> <Current Release> -> Security
Information -> Security Guide.
Operations Guide For more information, see SAP Help Portal at SAP Policy
Management -> <Current Release> -> System
Administration and Maintenance Information ->
Component Operations Guide.

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 3 Business Scenarios of SAP for Insurance

3.7.1 Application Processing and Policy

Issuance (New Business)
Overview
This scenario comprises the activities spanning from data entry or data transfer of a signed
application through to the final issuance or refusal of the policy. Various consistency checks,
risk assessments, and premium and benefit calculations take place, with varying degrees of
complexity depending on the product design. If a change option is required, the processor
creates one and sends it to the customer, requesting approval.
As a standard, you can schedule the update run daily. The update run executes all the
activities scheduled for a specific policy and product. Examples of these activities are
premium splitting, updating payment transaction data, or dividend usage.
At the end of the scenario, a new policy is either issued or refused.

Technical System Landscape

For more information about the technical system landscape of this scenario, see SAP Service
Marketplace at [Link]/scl  Start application  SAP Scenarios and
Realisation Alternatives  SAP for Insurance.

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3 Business Scenarios of SAP for Insurance

3.7.2 Mid-Term Policy Changes and Information

Overview
This scenario comprises all the changes made to an insurance policy and requests for
information by authorized persons that are handled during the policy's term. Changes can be
triggered either by participants in the policy (such as the policyholder or beneficiary) or by the
insurer.
At the end of the scenario, the policy is changed according to the change request, assuming
that the request is feasible and was accepted by the insurer. The policy processor has
handled a request for information successfully and fully.
Technical System Landscape
For more information about the technical system landscape of this scenario, see SAP Service
Marketplace at [Link]/scl  Start application  SAP Scenarios and
Realisation Alternatives  SAP for Insurance.

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 3 Business Scenarios of SAP for Insurance

3.7.3 Policy Maintenance

Overview
This scenario comprises, on the one hand, changes to in-force policies that are triggered by
the insurer (for instance, in transfer businesses or policy cancellations) and, on the other, the
regular updating of in-force policies.
The changes to policies initiated by the insurer are usually the result of manual activities of a
processor that are triggered by certain situations or events, or else as a result of
organizational requirements for the in-force policies. Depending on the type of change, the
processor requests the customer's approval for the planned change. The customer's
feedback has an effect on the policy.
The system manages the regular maintenance and update of in-force policies in SAP Policy
Management (FS-PM). Activities are regularly performed in background processing. These
automatically update both the lifecycle of the policy as well as the calculation of the sums
insured (such as fund assets or sums insured at specific times), up to the expiry date of the
policy.
FS-PM can also consider planned and unplanned processes that are determined outside of
the system.
Policies are usually updated in a mass run. However it is also possible that only the
processor (user) triggers these updates, as in the case of a retroactive change that causes
FS-PM to update the policy up to a certain target date.
Technical System Landscape
For more information about the technical system landscape of this scenario, see SAP Service
Marketplace at [Link]/scl  Start application  SAP Scenarios and
Realisation Alternatives  SAP for Insurance.

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3 Business Scenarios of SAP for Insurance

3.7.4 Important SAP Notes

For more information, see the corresponding SAP Notes chapters in the following guides:
 Installation Guide (SAP Policy Management -> Installation and Upgrade Information
-> Installation Guide)
 Upgrade Guide (SAP Policy Management -> -> Installation and Upgrade Information
-> Upgrade Guide)

3.7.5 Software Component Matrix

Business Scenario Software Components
Application Processing and FSPM 530
Policy Issuance TOMATOS 3.4.10
CAIMAN 3410
[Link] 3.4.10
[Link] Sample Content 530
MSGPMCON 200
Mid-Term Policy Changes and See Business Scenario Application Processing and
Information Policy Issuance
Policy Maintenance See Business Scenario Application Processing and
Policy Issuance

3.7.6 Implementation Sequence

SAP recommends to run SAP Policy Management (FS-PM) 5.3 always based on
the last support package available (currently SP03) and together with SAP
enhancement package 7 for SAP ERP 6.0, SP10 (or higher).
In case you use SAP Policy Management for Auto (FS-PM-AUTO) as well, always
ensure that the corresponding FS-PM-AUTO support package is available before you
use the last available FS-PM support package.

Step Action Remarks/Subsequent Steps

[Required Documentation]
1 SAP ERP 6.0
For more information about the installation,
see SAP Service Marketplace under
[Link] -> SAP
Business Suite Applications -> SAP ERP ->
SAP ERP 6.0 -> Installation -> Master Guide
for SAP ERP 6.0.

2 SAP enhancement package 7 for SAP ERP Installing the required

6.0, SP10 (or higher) languages.

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Guide: Language Transport,

(BC-CTS-LAN)
3 SAP for Insurance 617 Activate Business Function Set
Insurance in SAP enhancement
package 7 for SAP ERP 6.0.
4 SAP Policy Management 5.3 You must install SAP
You can find detailed information about the Policy Management 5.3
installation on SAP Help Portal at SAP Policy and SAP ERP 6.0 on
Management -> <Current Release> -> different SAP
Installation and Upgrade Information -> NetWeaver instances.
Installation Guide. In case you use two
different physical
systems, you must
ensure that one of the
following conditions
apply to the two different
physical systems:
 Both physical
systems are
Unicode systems.
 None of the physical
systems is a
Unicode system.

Since there is no technical dependency between steps 1-3 on the one side and
step 4 on the other side, it is also possible to start with step 4 and then proceed with
steps 1-3.

3.7.7 Required Support Packages

Software Component Support Package
SAP_BASIS 740 SAPKB74009
SAP_ABA 740 SAPKA74009
SAP_BW 740 SAPKW74009
SAP_BS_FND 747 SAPK-74706INSAPBSFND
PI_BASIS 740 SAPK-74009INPIBASIS
FSPM 530 04
MSGPMCON 200 SAPK-20002INMSGPMCON

3.7.8 Overall Upgrade Sequence

For more information, see SAP Help Portal at SAP Policy Management -> Installation and
Upgrade Information -> Upgrade Guide.

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3.8 SAP Policy Management Add-On for

Auto Insurance
SAP Policy Management Add-On for Auto Insurance uses the following business scenarios
from SAP Policy Management:
 Application Processing and Policy Issuance (see documentation in chapter 3.7.1)
 Mid-Term Policy Changes and Information (see documentation in chapter 3.7.2)
 Policy Maintenance (see documentation in chapter 3.7.3)

Further Information
The following documents provide more information about SAP Policy Management Add-On
for Auto Insurance.
Content Location
Scenario Description See the documentation in SAP Solution Manager.
Installation Guide For more information, see SAP Help Portal at
[Link] -> <Current
Release> -> Installation and Upgrade Information ->
Installation Guide.
Upgrade Guide For more information, see SAP Help Portal at
[Link] -> <Current
Release> -> Installation and Upgrade Information ->
Upgrade Guide.
Security Guide For more information, see SAP Help Portal at
[Link] -> <Current
Release> -> Security Information -> Security Guide.
Operations Guide For more information, see SAP Help Portal at
[Link] -> <Current
Release> -> System Administration and Maintenance
Information -> Application Operations Guide.
Several How to Guides For more information, see SAP Service Marketplace at
[Link] -> Industry Solutions ->
Industry Solution Guides -> SAP for Insurance -> SAP
Policy Management -> SAP Policy Management Auto -
Solution Manager Content.

3.8.1 Important SAP Notes

For more information, see the corresponding SAP Notes chapters in the following guides:
 Installation Guide ([Link] -> <Current Release> ->
Installation and Upgrade Information -> Installation Guide)
 Upgrade Guide ([Link] -> <Current Release> ->
Installation and Upgrade Information -> Upgrade Guide)

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 3 Business Scenarios of SAP for Insurance

3.8.2 Software Component Matrix

Business Scenario Software Components
Application Processing and FSPMAUTO 140
Policy Issuance FSPMAUTO PRODUCT CONTENT 140
SAP Policy Management Add-On for Auto Insurance
uses the same scenarios as SAP Policy Management
and due to that the same software component matrix
applies to FS-PM-AUTO as for FS-PM (see chapter
3.7.5).
Mid-Term Policy Changes and See Business Scenario Application Processing and
Information Policy Issuance
Policy Maintenance See Business Scenario Application Processing and
Policy Issuance

3.8.3 Implementation Sequence

SAP recommends to run SAP Policy Management (FS-PM) 5.3 always based on
the last support package available (currently SP03) and together with SAP
enhancement package 7 for SAP ERP 6.0, SP10 (or higher).
Always ensure that the corresponding FS-PM-AUTO support package is available
before you use the last available FS-PM support package.

Step Action Remarks/Subsequent Steps

[Required Documentation]
1-4 See description for SAP Policy
Management 5.3 in chapter 3.7.6

5 SAP Policy Management Add-On for

Auto Insurance 1.4
You can find detailed information about the
installation on SAP Help Portal at
[Link] ->
<Current Release> -> Installation and
Upgrade Information -> Installation Guide.

3.8.4 Required Support Packages

See corresponding information SAP Policy Management in chapter 3.7.7.

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3 Business Scenarios of SAP for Insurance

3.8.5 Overall Upgrade Sequence

For more information, see SAP Help Portal at [Link] ->
<Current Release> -> Installation and Upgrade Information -> Upgrade Guide.

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 3 Business Scenarios of SAP for Insurance

3.9 SAP Policy Management Add-On for

Group Insurance
The SAP Policy Management, Group Insurance add-on business scenario includes a set of
functions and business processes that allow you to extend your FS-PM usage in the area of
group insurance. It comprises the following business processes:
 Maintaining Master Policies
 Creating Manual Correspondence for Master Policies
 Selecting Subsets of Policies in Master Policies
 Processing Mass Changes on Policies
Further Information
The following documents provide more information about SAP Policy Management, Group
Insurance Add-On.
Content Location
Scenario Description See the documentation in SAP Solution Manager.
Installation Guide For more information, see SAP Help Portal at
[Link] -> <Current
Release> -> Installation and Upgrade Information ->
Installation Guide.
Security Guide For more information, see SAP Help Portal at
[Link] -> <Current
Release> -> Security Information -> Security Guide.
Operations Guide For more information, see SAP Help Portal at
[Link] -> <Current
Release> -> System Administration and Maintenance
Information -> Application Operations Guide.
Configuration Guide For more information, see SAP Service Marketplace at
[Link] -> Industry Solutions ->
Industry Solution Guides -> SAP for Insurance -> SAP
Policy Management -> SAP Policy Management, Group
Insurance Add-On 1.0 -> Configuration Guide.

3.9.1 Important SAP Notes

Make sure that you have the up-to-date version of each SAP Note, which is available on SAP
Service Marketplace at [Link]

SAP Note Number Title

2183602 Release Strategy for the ABAP Add-On FSPMGI

2091263 Mass Change with Policies to be Processed

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3 Business Scenarios of SAP for Insurance

3.9.2 Software Component Matrix

Business Scenario Software Components
SAP Policy Management, Group FSPM 530
Insurance add-on

3.9.3 Implementation Sequence

SAP recommends to run SAP Policy Management (FS-PM) 5.3 always based on
the last support package available (currently SP02) and together with SAP
enhancement package 7 for SAP ERP 6.0, SP10 (or higher).

Step Action Remarks/Subsequent Steps

[Required Documentation]
1-4 See description for SAP Policy Management
5.3 in chapter 3.7.6

5 SAP Policy Management, Group

Insurance add-on 1.0
You can find detailed information about the
installation on SAP Help Portal at
[Link] ->
<Current Release> -> Installation and
Upgrade Information -> Installation Guide.

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3.10 SAP Product Lifecycle Management

for Insurance
You can find detailed information about SAP Product Lifecycle Management for Insurance on
SAP Service Marketplace at [Link] > Industry Solutions ->
Industry Solution Guides -> SAP for Insurance -> SAP Product Lifecycle Management for
Insurance (FS-PRO).

3.10.1 Important SAP Notes

SAP Note Title Description
Number

2188404 Installation of Product This note contains additional information

and Quotation on installation
Management for
Insurance (FS-PQM) 3.0

3.10.2 Software Component Matrix

The following software components are used:
 FS-PRO 7.6
 FS-PWS 7.6
 FS-QUO 7.6

3.10.3 Implementation Sequence

See the Installation Guide on SAP Service Marketplace (path see above under 3.9).

3.10.4 Required Support Packages

None

3.10.5 Overall Upgrade Sequence

For more information, see SAP Help Portal at [Link] -> <Current
Release> -> Installation and Upgrade Information -> Upgrade Guide.

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3 Business Scenarios of SAP for Insurance

3.11 SAP Underwriting for Insurance

You can find detailed information about SAP Underwriting for Insurance on SAP Service
Marketplace at [Link] > Industry Solutions -> Industry Solution
Guides -> SAP for Insurance -> SAP Underwriting for Insurance (FS-QUO).

3.11.1 Important SAP Notes

SAP Note Title Description
Number

2188404 Installation of Product This note contains additional information

and Quotation on installation
Management for
Insurance (FS-PQM) 3.0

3.11.2 Software Component Matrix

The following software components are used:
 FS-PRO 7.6
 FS-PWS 7.6
 FS-QUO 7.6

3.11.3 Implementation Sequence

See the Installation Guide on SAP Service Marketplace (path see above under 3.10).

3.11.4 Required Support Packages

None

3.11.5 Overall Upgrade Sequence

For more information, see SAP Help Portal at [Link] ->
<Current Release> -> Installation and Upgrade Information -> Upgrade Guide.

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3.12 SAP Reinsurance Management

SAP Reinsurance Management contains the following business scenarios:
 Reinsurance Lifecyle Management
 Reinsurance Management for Active Reinsurers

Further Information
The following documents provide more information about SAP Policy Management Add-On
for Auto Insurance.
Content Location
Scenario Description See the documentation in SAP Solution Manager.
Installation Guide For more information, see SAP Help Portal at
[Link] -> <Current Release> ->
Installation and Upgrade Information -> Installation Guide.
Upgrade Guide For more information, see SAP Help Portal at
[Link] -> <Current Release> ->
Installation and Upgrade Information -> Upgrade Guide.
Security Guide For more information, see SAP Help Portal at
[Link] -> <Current Release> ->
Security Information -> Security Guide.
Operations Guide For more information, see SAP Help Portal at
[Link] -> <Current Release> ->
System Administration and Maintenance Information ->
Application Operations Guide.

3.12.1 Important SAP Notes

SAP Note Title Description
Number

70228 Add-ons: Conditions and

upgrade planning

440521 Overview: SAP Notes for FS-RI Overview of all notes of the R/3 Add-
Ons FS-RI (bzw. IS-IS-RI)on the
following topics:
 Release strategy (delivery
dates)
 New installation
 Upgrade
 Support Packages
 Add-On Support Packages
1869457 Installation of FS-RI 700 on SAP Information for the Add On
ERP 6.0, EHP7/NW740 Installation FS-RI 700 and the Add
On Upgrade FS-RI 700 from FS-RI
680, FS-RI 670, FS-RI 660, FS-RI

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3 Business Scenarios of SAP for Insurance

650 or FS-RI 600

1869458 Upgrade nach SAP ERP 6.0, Upgrade from R/3 Enterprise 47x200
EHP7/NW740 mit FS-RI 700 with FS-RI 472 to SAP ERP 6.0,
EHP7/NW740 with FS-RI 700
822380 Problems with Add-Ons
installation or upgrade to SAP
NW 7.0 AS ABAP

3.12.2 Software Component Matrix

Business Scenario Software Components
Reinsurance Lifecyle FS-RI 700
Management XI CONTENT ESM FS-RI 700
SAP_BASIS 740
SAP_APPL 617
EA-APPL 617
Reinsurance Management for See business scenario Reinsurance Lifecyle
Active Reinsurers Management

3.12.3 Implementation Sequence

SAP recommends to run SAP Reinsurance Management 7.0 together with SAP
enhancement package 7 for SAP ERP 6.0.

Step Action Remarks/Subsequent Steps

[Required Documentation]
1 SAP ERP 6.0
For more information about the installation,
see SAP Service Marketplace under
[Link] -> SAP
Business Suite Applications -> SAP ERP ->
SAP ERP 6.0 -> Installation -> Master
Guide for SAP ERP 6.0.

2 SAP enhancement package 7 for SAP Installing the required languages.

ERP 6.0 Guide: Language Transport, (BC-
You can find detailed information about the CTS-LAN)
installation on SAP Service Marketplace at
[Link]/instguides  SAP
Business Suite Applications  SAP ERP
 SAP ERP 6.0  SAP enhancement
packages for SAP ERP 6.0  SAP
enhancement package 7 for SAP ERP 6.0

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 3 Business Scenarios of SAP for Insurance

 Master Guide SAP enhancement

package 7 for SAP ERP 6.0.
3 SAP for Insurance 617 Activate Business Function Set
Insurance in SAP enhancement
package 7 for SAP ERP 6.0.
4 SAP Reinsurance Management 7.0,
SP14
For more information about the installation,
see SAP Help Portal at
[Link] -> <Current
Release> -> Installation and Upgrade
Information -> Installation Guide.

3.12.4 Required Support Packages

Software Component Support Package
SAP_BASIS 740 SAPKB74013
SAP_APPL 617 SAPKH61711
EA-APPL 617 SAPK-61711INEAAPPL
SAP_UI 740 SAPK-74014INSAPUI

3.12.5 Overall Upgrade Sequence

For more information, see SAP Help Portal at [Link] -> <Current
Release> -> Installation and Upgrade Information -> Upgrade Guide.

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3 Business Scenarios of SAP for Insurance

3.13 SAP Insurance Portals and

Workplaces
You can find all relevant information concerning SAP Insurance Portals and Workplaces on
SAP Help Portal at [Link]

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 3 Business Scenarios of SAP for Insurance

3.14 SAP Insurance Analyzer

You can find all relevant information concerning SAP Insurance Analyzer on SAP Help Portal
at [Link]
Integration with SAP Policy Management
You can find more information in the SAP note 2037280.

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