Explaining How SAP Creates Value for the Insurance Industry

In this lesson, we walk you through how SAP for Insurance helps insurance companies tackle industry challenges, drive growth, and realize their vision.

When speaking with insurance executives, you notice that their key concerns center around:

• Real time insights into insurance

• Enhancing customer experiences

• Managing regulatory compliance

• Attracting and retaining top talent

• Adapting to industry disruptions

For each of these challenges, SAP provides tailored solutions. Let’s explore how.

Challenge: Insurers need real-time insights into risk behavior to make informed decisions.

Solution: SAP Analytics Cloud provides real-time analytics and predictive modeling to assess risk trends and behaviors.

Challenge: Customers expect a personalized, omnichannel experience.

Solution: SAP’s CX Portfolio supports:

• Digital engagement for online self-service
• Direct engagement through brokers and agents

Challenge: Regulations like IFRS 17 demand accurate financial reporting.

Solution: SAP’s Office of the CFO solutions support compliance and provide financial planning tools.

Challenge: Attracting and retaining top insurance professionals is becoming increasingly competitive.

Solution: SAP SuccessFactors provides tools to:

• Engage and motivate employees
• Streamline talent acquisition and retention

Adapting to Converging Industries and InsurTech Disruptors

Challenge: New players are reshaping the insurance market.

Solution: SAP Business Technology Platform (BTP) enables innovation and agility, helping insurers integrate with new business models.

Beyond challenges, insurers also have ambitious growth plans, such as:

• Expanding into new markets.

• Launching innovative products.

• Offering "Insurance-as-a-Service".

How can SAP help? By delivering an integrated, innovative, and agile IT platform that supports digital transformation and operational efficiency.

SAP offers one of the most comprehensive insurance solution portfolios, driving automation, standardization, and operational excellence.

• SAP Business Technology Platform (BTP): The foundation for innovation and digital transformation.
• Cloud ERP and Industry Solutions: Covering finance, spend management, HR, and customer engagement.
• SAP Fioneer: Specializing in policy management, claims processing, and incentive and commission management.
• AI-Powered Solutions: Enhancing automation, risk assessment, and customer insights.

AI is not new, but with the rise of ChatGPT and Generative AI, it is gaining unprecedented momentum. SAP’s AI strategy focuses on:

Business-Process-Driven AI: Embedding AI into real insurance processes for optimized business outcomes.

Strategic AI Partnerships: Collaborations with Microsoft, Google, IBM, and other tech leaders.

SAP Business Technology Platform (BTP) for AI: Enabling customers to:

• Train their own AI models.
• Use pre-built AI services like document intelligence and fraud detection.
• integrate predictive analytics for better decision-making.

Examples of AI-Powered Use Cases in Insurance:

• Finance: Automated cash application and financial reconciliation

• Customer Engagement: AI-driven chatbots and virtual assistants for policyholder support

• Procurement: AI-powered contract analysis in SAP Ariba

SAP’s AI strategy is about embedding AI responsibly into insurance processes to drive tangible business value.

SAP Datasphere is SAP’s next-generation data warehouse cloud, enabling insurers to:

• Gain real-time access to mission-critical business data

• Ensure scalable, secure, and compliant data management.

• Enhance financial planning and reporting.

Every SAP insurance customer will eventually integrate SAP Datasphere into their financial and analytical architecture.

SAP Fioneer is SAP’s #1 industry solution partner, specializing in core insurance solutions:

• Policy Administration
• Claims Processing
• Reinsurance Management
• Commissions and Incentives

SAP Fioneer continues to onboard best-in-class InsurTech partners. The goal is to offer insurers a flexible, modular ecosystem of solutions that adapt to evolving market needs.

SAP’s vision for the future of insurance is built around:

• Personalized customer experiences through AI and data-driven engagement.
• Streamlined operations via automation and integrated digital workflows.
• Cost optimization with spend management, procurement, and workforce solutions.
• Real-time financial insights for improved compliance and forecasting.

SAP is more than just a technology provider—it is a strategic partner for insurance transformation.

With SAP, insurers can:

• Overcome industry challenges efficiently.
• Drive innovation and customer-centric growth.
• Achieve long-term digital resilience and operational excellence.

• SAP empowers insurers to tackle industry challenges by providing real-time risk insights through SAP Analytics Cloud, enabling data-driven decision-making and proactive risk management.

• Driving Digital Transformation and Agility: SAP Business Technology Platform (BTP) serves as the foundation for innovation, helping insurers streamline operations, integrate new business models, and stay competitive in a rapidly evolving market.

• SAP Fioneer specializes in policy administration, claims processing, and commission management, ensuring efficiency, automation, and seamless operations in the insurance value chain.

• AI-powered automation and advanced analytics enhance risk assessment, improve customer engagement, drive intelligent business decisions, and position insurers for long-term success.