KUALA LUMPUR: Concerned over the growing and intense competition in the insurance sector, SAP (M) Sdn Bhd is offering to help insurers and reinsurers improve competitiveness and enhance their overall performance.
Country sales manager (enterprise sales) Anne Abraham said with SAP For Insurance, it could provide end-to-end solutions that would help reduce costs, boost efficiency and competitiveness of insurance companies.
“Our end-to-end solutions comprise various modules like insurance core applications, sales and service solutions, and business support applications. The SAP insurance solution consists of comprehensive modules and not just stand-alone modules.
“For example, under the core applications modules, we provide solutions to insurance companies to enhance effectiveness as well as reduce cost in areas like policy management, claims management, collection and disbursements, commission, reinsurance and financial asset management,” she said.
By using SAP insurance tools, insurers could launch a product in two to six weeks compared with a much longer timeframe using conventional tools, Abraham said.
Senior solution architect Raymond Ngan said the company's end-to-end solutions could reduce costs of software maintenance and development, manual administration costs, as well as payment transaction costs.
“Research in Europe has shown that by adopting the SAP solutions, insurance companies' claims leakage can be reduced by 50% to 70%, and their combined ratio improved by 4% to 6%.
“It has also helped boost sales productivity of insurance agents by 30% in two years as well as reduce policy and administration costs by 3% to 5%,” he added.
According to Abraham, the tools and solutions are also flexible and can be added to existing core applications or integrate with competitors' solutions.
She said the product had also been proven to help insurers from incurring millions of dollars in losses resulting from hurricanes and other natural catastrophes.
The product can help predict and analyse risks.
SAP Malaysia, a subsidiary of SAP AG of Germany, is currently in discussion with some major insurance players in the country for the adoption of its tools and solutions.
SAP insurance solutions at present are used by seven of the top 10 European insurance groups which include AXA, Allianz, Generali, Prudential, Munich Re and Royal & Sun Alliance.