Insurance Policy Issuing and Underwriting - Enterprise Services WIKI - SCN Wiki

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Added by Deborah Cameron, last edited by Deborah Cameron on Oct 13, 2007

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Insurance Policy Issuing and Underwriting

The Insurance Policy Issuing and Underwriting ES bundle enables sales agents at insurance companies to create insurance contracts and applications for insurance contracts from the ground up.

Before a policy can be created, the object that the applicant wishes to insure, such as a home, life, or piece of jewelry, must first be created in SAP Policy Management (FS-PM). The sales agent can

begin to collect data about the object so that quotes for different levels of coverage can be generated. Once the applicant has chosen the degree of protection for the object in question, the sales agent

can create a contract or, if more data is needed for further risk consideration by the underwriting department, an application for the contract.

This bundle addresses four main processes. These processes concern:

Searching for an existing insurable object

Creating an insurable object

Creating an application for an insurance contract

Creating an insurance contract

The System Landscape

The Insurance Policy Issuing and Underwriting ES bundle leverages enterprise SOA through communications between third-party insurance software and SAP Policy Management (FS-PM).

Searching for an Existing Insurable Object

Before an insurance sales agent can create a contract or an application for a contract, the object that the applicant wishes to protect must first be located in FS-PM. This initial step helps to ensure that

duplicate insurable objects are not created.

Step 1: The agent searches FS-PM to determine whether the object in question has already been created.

Step 2. If the object does exist, it will be loaded with its ID and the effective dates of any changes to the insurable object that may affect its premium status.

Step 3: If the object does not exist, FS-PM will notify the agent. The agent then creates an insurable object, as outlined next.

Creating an Insurable Object

If the object that an applicant wishes to insure does not exist in FS-PM, the sales agent must create it, including any data that may affect the cost or conditions of the overall prospective insurance policy.

Step 1: The agent invokes a service operation to create an insurable object in FS-PM.

Step 2: If all the data needed to create this business object is provided, the object being considered for coverage in a contract will be automatically stored via the bundles A2A services. FS-PM passes the

ID for the newly created object back along with the confirmation message.

Step 3: If FS-PM is unable to create an insurable object, it invokes a service and includes an error message to say that the object has not been created.

Creating an Insurance Application

Once an agent has loaded or created one or more insurable objects in FS-PM, premium quotes can be generated and an insurance policy or an application for a policy created. On occasion the potential

risk to which an insurable object will be exposed is sufficiently low to allow immediate creation of a policy without an application. In such a case, the attendant agent can immediately create the insurance

policy itself (as described in the next section). If, however, the potential risk is high, an application for a policy must be created for further analysis by the companys underwriting team. Creating an

application for a contract is also possible if the information for creating a contract directly is incomplete; the application can then be completed later.

Step 1: The agent enters the information about the requested insurance.

Step 2: The transferred data is stored and an insurance application created.

Step 3: If the system successfully creates the insurance application, it will notify the agent with a confirmation message.

Step 4: If the system cannot create the application, it will notify the agent with an appropriate error message.

Creating an Insurance Contract

The immediate creation of a contract is possible only if all checks and clarifications have been performed before any data is transferred to the policy management system. This is typical when working with

simple or standardized insurance policies such as those, for example, covering private liability. If partial data has been transferred, on the other hand, the insurance sales agent must first create an

application for the contract, which will then be processed and examined by a member of the companys underwriting team. Once the application has been authorized, the agent may create a contract.

Step 1: The agent will import all data needed to create the contract by invoking the appropriate service operation. The data will be processed at this time.

Step 2: If the data is successfully transferred, FS-PM will check it against any existing rules.

Step 3: The insurance contract is automatically created once the system has successfully checked the imported data.

Step 4: If the system successfully creates the insurance contract, it will notify the agent with a confirmation message.

Step 5: If the system is unable to create a contract, the agent will be notified with an appropriate error message.

rance Policy Issuing and Underwriting - Enterprise Services WIKI ... http://wiki.scn.sap.com/wiki/display/ESpackages/Insurance+Policy+Is...

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Audience

All insurance companies will benefit from the services in the Insurance Policy Issuing and Underwriting ES bundle.

The roles in the insurance companies that will use this bundle include insurance sales agents and clerks.

Process Components in Insurance Policy Issuing and Underwriting

Business Objects in Insurance Policy Issuing and Underwriting

Enterprise Services in Insurance Policy Issuing and Underwriting

How To Use This ES Bundle

Until recently, insurance sales agents met with clients interested in obtaining an insurance contract and wrote down or typed all of the information required to provide the client with a premium quotation

and application for a contract into the quotation management system. Later, to create an insurance contract or an application for an insurance contract, a clerk or another employee had to manually enter

the data into the SAP Policy Management system or copy and paste it item by item.

The Benefits of Deploying the Insurance Policy Issuing and Underwriting ES Bundle

The Insurance Policy Issuing and Underwriting ES bundle enables insurance sales agents to create complete insurance contracts and applications for insurance contracts from a single, integrated user

interface, thus guaranteeing that they need only enter any given piece of data a single time. Once the information is stored in SAP Policy Management, it can be accessed as needed.

This following sections will explore four use cases for the Insurance Policy Issuing and Underwriting ES bundle. Each use case provides concrete examples and shows how different outcomes can be

achieved by using the enterprise services in different combinations. While these examples illustrate a few of the ways that this ES bundle could be used, the intention is to show the flexibility and

reusability of these business objects and enterprise service operations so that you will have a clearer understanding of how to best deploy them in your own environment. This wiki is also a space for you

to share knowledge and collaborate with others who are implementing the Insurance Policy Issuing and Underwriting ES bundle.

Use Case 1: Searching for an Existing Insurable Object

A newly married couple is in the process of purchasing their first home and is now shopping for a suitable homeowners insurance policy. Older homes such as this one have usually been insured by their

past owners, sometimes by the same insurance company. For example, the home may have had four previous owners, any one of which may have insured it with the current company, Blue Sky

Insurance. Since Blue Sky Insurance is deploying SAP Policy Management in concert with the Insurance Policy Issuing and Underwriting ES bundle, the home will already exist as an insurable object in

their database if any of the previous owners have taken out a policy with them.

Searching for an Object

To avoid creating a duplicate insurable object, the insurance agent, Ernest, can conduct a search for the house by using any one of its attributes, such its owner, size, or address and postal code. This will

invoke the Find Insurance Individual Valuable by Elementsservice operation, which uses the Insurance Individual Valuablebusiness object.

Searching for Alternative Objects

Insurance sales agents can search for any insurable object using the same technique. If Ernest wanted to search for a used car that a client wanted to cover, for instance, he could do so by using its

Vehicle Identification Number (VIN).

When a Search Fails

As it happens, none of the homes previous owners have done business with Blue Sky Insurance, so Ernest must create an insurable object for the home in FS-PM (as described in use case 2) before he

can create an insurance contract or an application for an insurance contract. Had the home existed in the database as an insurable object, Ernest would have been able to import it into his sales system

along with its ID and any pertinent data, such as the size of the home and the property itself, among others, and then begin the process of generating a quote and possible insurance policy.

Use Case 2: Creating an Insurable Object

In the previous use case, the sales agent for Blue Sky Insurance, Ernest, searched in FS-PM to see whether it had an insurable object that represents the home for which Ernests current clients would like

to purchase an insurance contract. Since the insurable object does not exist in FS-PM, Ernest must now create one. Until he does so, he cannot proceed with the process of generating a quote for his

clients, nor can he create an insurance contract or application for an insurance contract.

Creating an Object

To create an insurable object, Ernest can trigger t he Create Insurance Individual Valuableservice operation, which uses the Insurance Individual Valuablebusiness object.

Creating Different Objects

Ernest can create insurable objects in FS-PM for any item that it is possible to insure under a policy, including homes, businesses, land, household goods, automobiles, and jewelry.

Confirming the Success or Failure to Create an Object

As soon as FS-PM processes and stores the new insurable object, FS-PM invokes the Confirm Insurance Individual Valuableservice operation, sending back the ID for the newly created object. (It also

invokes this service if for any reason it could not create the object, but sends back an error message instead of an ID). Now, he can enter any data with which the object will be associated, all of which will

be vital to the creation of the couples insurance policy. Should FS-PM have been unable to create an insurable object for the house for any reason, it would have sent Ernest an appropriate error

message.

Use Case 3: Creating an Insurance Application

After Ernest created the object for the couples new home in FS-PM, he was able to generate a basic premium quote that perfectly meets the couples needs. They would like to purchase an insurance

contract, but since they have already begun work on a new addition to the home, among other restorations, they do not have all of the information that Ernest needs to create a full contract.

Creating an Application for an Insurance Contract

Instead, he must create an application for the contract, and when the couple is able to provide him with the rest of the needed data, the underwriting team with Blue Sky Insurance can check it against

company rules and regulations. If all criteria are met, Ernest will complete the contract.


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Other circumstances in which it is not possible to immediately create an insurance contract involve those in which numerous types of risks must be considered, such when a person wishes to purchase life

insurance. In such cases, the underwriting team must perform various calculations, and, at times, it may be that the applicant will need to undergo a physical or perhaps have blood tests performed in

order to receive required documentation. In short, the more complex or valuable the object needing coverage under an insurance contractor the more extensive the coveragethe more difficult it is to

create the policy itself without first going through an application process. Ernest can create the application for the contract by invoking the Create Insurance Applicationservice operation, which uses the

Insurance Applicationbusiness object.

Confirming the Success or Failure to Create an Application for an Insurance Contract

If all data is successfully transferred and stored in FS-PM, FS-PM invokes the Confirm Insurance Application Creationenterprise service to confirm the successful creation of the application. If FS-PM

could not create the application, it will invoke the same service, sending along an error message stating what went wrong.

Use Case 4: Creating an Insurance Contract

The application for an insurance contract to cover the home of the couple from the previous scenarios was approved as soon as the couple provided Ernest with the rest of the needed data. All that

remains for Ernest to do now is create the insurance contract itself.

Creating an Application for an Insurance Contract

Ernest can do this by invoking the Create Insurance Contractservice operation, which uses the Insurance Contractbusiness object. The insurable object that he created in the first scenario has been

the basis of the process from start to finish. Whenever Ernest or any other employee with Blue Sky Insurance wants to reference the couples policy, they need only use the objects ID to invoke the Find

Insurance Individual Valuable by Elementsservice operation. Thereafter, the object and all its associated data, including the policy it was used to create, can be viewed by triggering the Read

Insurance Individual Valuable by Elementsservice operation.

Confirming the Success or Failure to Create an Insurance Contract

As in the earlier scenarios, if all data is successfully transferred and stored in FS-PM, FS-PM invokes the Confirm Insurance Contract Creationservice operation. FS-PM invokes the same service if it

failed to create the insurance contract, along with an appropriate error message.

Best Practices

You can help improve this ES bundle by adding details about best practices.

Using This ES Bundle with an Existing Test Application

You can help improve this ES bundle by adding information about test applications as they become available.

Using the Services in This ES Bundle with SAP Applications

You can help improve this ES bundle by describing how to use the included services with other SAP applications.

Using This ES Bundle with Partner ApplicationsYou can help improve this ES bundle by describing how to implement the included services with partner applications.

Existing Sample Code

You can help improve this ES bundle by including sample code.

Future Directions

No future directions for this ES bundle are planned at the moment.

Enterprise Services Community Engagement

View activity for this ES bundle on the ES Community

System Requirements

SAP NetWeaver Process Integration (formerly XI)

SAP Policy Management 4.0

Success Stories

You can help improve this ES bundle by including success stories using the business objectsandenterprise services.

Lessons Learned

You can help improve this ES bundle by updating this section with tips and tricks for optimal usage of the business objectsandenterprise services.

More usage notes appear in the page describing each enterprise service operation.

Related ES Bundles


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Insurance Claims Handling

Insurance Document Vendor

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Insurance External Reporting

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Insurance Policy Issuing and Underwriting - Enterprise Services WIKI - SCN Wiki