Solution Details SAP Rapid Deployment Solution for Solvency II Regulatory Reporting

Solution Details

SAP Rapid Deployment Solution for Solvency II Regulatory Reporting

© 2012 SAP AG. All rights reserved. 2

Contents

Introduction to SAP Rapid Deployment Solutions

Overview of the Solution

Solution in Detail Financial Consolidation for Solvency 2 Regulatory Reporting Disclosure Management for Solvency 2 Regulatory Reporting

Service Delivery

Technical Details

Introduction to SAP Rapid Deployment Solutions


Today’s reality…

“

“

Statistics state that up to 70% of IT projects run late, over-budget, or do not meet planned goals…Consequently, implementation risk is a critical factor…From “Introducing Packaged Solutions” by Michael Krigsman

Now when companies think about implementing an application, they really want to implement an integrated solution. Henry D. Morris, Senior Vice President of Worldwide Software and Services, IDC

Customers today want choices in how they scope, configure, and deploy business software. Peter M. Russo, Managing Director of Pierre Audoin Consultants


You want to…

… ensure the most predictable and fastest time to business value

… deliver the integration the business demands to start and grow without compromises

… choose from a modular ready to use portfolio of solution, deployment and pricing options


SAP and a global partner ecosystem offer Rapid Deployment Solutions to meet specific business needs…

Software

Quickly address the most urgent business processes

Content

SAP best practices, templates and tools make solution adoption easier

Enablement

Guides and educational material speed end user adoption

Service

Fixed scope and price provides maximum predictability and lowers risk

SAP Rapid Deployment Solutions

Service

Software

Enablement

Content

RAPID DEPLOYMENT

SOLUTIONS


… which allow predictability, out-of-the-box integration and adoption choices as business demands

Predictability Fast value in days/weeks Fixed cost and fixed best practice scope

Integration Integrated start and growth options Immediate and future IT and business processes

landscape integrity

Choice Modular packages to meet specific business needs

and allow individual adoption paths Flexible licensing and deployment options

SAP Rapid Deployment Solutions


Why have customers chosen SAP Rapid Deployment Solutions?

8

Weeksto go-live

15%

Reduction in project costs

4

Week implementation


Delivered by SAP or qualified partners

Large Global Partner Ecosystem maximizes availability of and choice within the Rapid Deployment Solutions portfolio

System integrators and value-added resellers provide industry and LoB specific capabilities and expertise

Cloud partners provide the deployment options to match your business needs


SAP Rapid Deployment Solutions define a new standard for business solution adoption across the SAP Portfolio

On demand

On premise

On device

Deployment

Business Solutions

Analytics

Technology

Solution Portfolio Industry & LoB

HANA

Mobility

Innovations


SAP Rapid Deployment Solutions support all use cases along your adoption path

From zero to ERP baseline in one goIndustry & geography-ready

New business and user capabilities – that fit with your existing footprint

LoB or industry-specific, mobile, business analytics, collaboration

Start

Grow, extend, innovate

Predictability Integration Choice


Get the most out of your business – NOW!

Quickly meeting your most pressing business needs on unprecedented predictability to adopt and manage business solutions

Enabling strategic business adoption paths with out-of-the-box integration for start and grow options as your business demands

Giving choice by providing a modular and well defined portfolio of solution options together with a Global Partner Ecosystem

Overview of the solution


Business challenges There is a solution This RDS offers customers a major implementation

accelerator with pre-configured Solvency 2, Pillar III content on an integrated solution architecture

Financial Consolidation provides a complete Solvency 2 data-model to collect, to reconcile, to validate and to consolidate the Solvency 2 data

Disclosure Management supports the end-users with creating, validating and publishing the required quantitative and qualitative reports

Support and improve your business leveraging the power of your Solvency 2 reporting solution

All insurance companies operating in the EU need to comply with Solvency 2 regulation as of January, 2014*. Within the context of the Pillar III requirements, the insurance companies face a series of challenges to overcome:Designing and structuring the data needed to comply with the Solvency 2 reporting requirementsCollecting data from a high variety of source-systems Guaranteeing correctness and consistency of both source data and consolidated dataAlignment with IFRSData-access protection and reporting workflowsReporting facilities supporting XBRL

*Revised implementation assumptions overviewWe have revised our implementation assumptions in light of the discussions in Europe about splitting the implementation dates for Solvency II (also referred to as bifurcation). We will only revisit these assumptions if there is a significant change in the dates beyond 2014.Our revised planning assumptions are that:•1 January, 2013 is when the responsibilities of supervisors and EIOPA will be switched on (i.e. transposition of the Directive would have to be complete by 1 January 2013). This date has been moved to 31/03/2013 and might even be further postponed to 30/06/2013.•1 January 2014 is when the Solvency II requirements will be switched on for firms. There are issues still to be resolved in Europe, including the approach to groups, equivalence, reporting and transitionals. We have developed an approach that balances what we need to do to carry out our regulatory obligations and bring in the new regime, with the needs of the industry. This approach to implementation depends on whether the firm intends to use the standard formula or an internal model.


A modular solution

One benefits from a full integration by implementing both Disclosure Management and Financial Consolidation, but a customer can choose for one or the other.Example 1:

An insures needs to deal with many different source-systems to collect Solvency 2 data. He needs a new consolidation environment for Solvency2 data as well as a reporting tool. The customer chooses both FC and DM.

Example 2:

An insurer already has a sound consolidation system in place. He does not consider that the SAP Financial Consolidation brings him added value. He can choose to only have the Disclosure Management with the preconfigured QRT’s for receiving the structured data, for validating the data, and for creating the QRT reports.

Example 3:

A customer already has a reporting tool to support the generation of the needed reports. He can choose to only have the SAP Financial Consolidation contents to collect, validate, consolidate and structure the Solvency 2 data ready for disclosure (the report-data in the FC pre-configured data-model already are structured as QRT’s)


Solvency 2 – Pillar III Requirements

Solvency 2

Pillar I: Quantitative Requirements

Calculation of required Solvency Capital (SCR, MCR)

Solvency 2 Balance Sheet

Pillar II: Qualitative Requirements

Own Risk and Solvency Assessment (ORSA)

Governance System

Pillar III: Reporting and Disclosure Requirements

Report to Supervisor (RSR)

Solvency and Financial Condition Report (SFCR)

Quantitative Reporting Templates (QRTs)


Solvency II Reporting Solution Architecture

SAP Business Warehouse

Non- SAP Business

Warehouse

Other Data Sources

SAP RDS for Solvency II Regulatory Reporting

Dashboards, Analysis, Data Visualization

SAP BusinessObjectsData Services

SAP DM SAP FC


Business Process Scope Covered in this RDS

SAP Financial ConsolidationCollection of data relevant for S2

Data UploadManual entry if neededIFRS alignment

Inter/intra document data controls

Corrections

Consolidation (solo/group)

Quarterly ReportingYearly Reporting

65 QRT’s(RSR & SFCR)

Quarterly ReportingYearly Reporting

65 QRT’s(RSR & SFCR)


SAP Financial Consolidation

Features:

Standardized Functionality for Data Collection, System Controls, Process Monitoring, Calculations, Financial Consolidation, Reporting and Auditing

Integration with SAP BW, SAP BusinessObjects Business Intelligence and non-SAP Reporting Tools

Fast Implementation in SAP & Non-SAP based architectures

This RDS adds …

o Pre-configured content for Solvency II, Pillar III Reporting


SAP Disclosure Management

Features:

Provides Collaborative Workflows for the creation of Reports from data-collection, over analysis and validation, to disclosure

Supports XBRL

Can also be integrated on a multitude of data sources

This RDS adds

– Pre-configured Solvency II, Pillar III Content (65 quantitative reporting templates; RSR and SFCR report structure


SAP Financial Information Management

Link your data-sources:

FIM is an optimized ETL tool for SAP FC and other Data Sources

Standard Integration with SAP ECC and SAP BW

Key Features

•User controlled – Give finance an easy,repeatable process•Comprehensive application support – Integrate with SAP EPM solutions•Simplified mappings – Set up and maintain data mappings with a wizarddriven integration interface•Metadata browsing – Browse metadata in the SAP ERP application or the SAP NetWeaver® Business Warehouse•component when creating mapping tables•Automated audit trail – Have a trail for every data move•Drill to origin and drill to source – Drill back to view the data source•Validations – Detect invalid mappings and missing dimensions•Extensive connectivity – Connect to SAP and non-SAP software systems

SAP Financial Information Management (FIM) is not part of the RDS but FIM is the recommended tool to interface SAP FC to your source systems (e.g. solo-entities; IFRS-database;…)


Business benefits Measurable successShorter leadtime for report generation

Less error-processing

Benefits for you

The RDS is a major accelerator for a Solvency 2, Pillar III implementation at both solo and group level

Build a trustful relationship with customers shareholders, rating agencies and other stakeholders

Align the Solvency 2 balance sheet with IFRS and improve the investors insight

Have a solid basis for additional internal risk reporting

Take advantage of a large eco-system to support you with adopting the solution to changing legal requirements

Financial Consolidation for Solvency 2 Regulatory Reporting


What’s included Business benefits Pre-defined Solvency 2 content providing a major

implementation accelerator A central Solvency 2 consolidation tool that can

be easily interfaced with any source system Supporting alignment between IFRS and

Solvency2 A solid source to support internal financial and

risk reporting A data-model structured to facilitate the

maintenance and control of the various data like assets, technical provisions, reinsurance, balance sheet

Financial Consolidation for Solvency 2 Regulatory Reporting : scope and benefits

A pre-defined data-model to collect and consolidate data needed for the Solvency2 Quantitative Reporting Templates

Both solo and group requirements are supported in the data-model

Consolidation of the Solvency Balance Sheet and reconciliation with IFRS and local GAAPs

Pre-defined reports are mapped on the report structure in Disclosure Management


In the system

Key process flows covered Quarterly and yearly reporting

cycles for the respective Solvency 2, Pillar III Quantitative Reporting Templates– Collection of data– Validation of data– Consolidation of data– Transfer to DM

Disclosure Management for Solvency 2 Regulatory Reporting


What’s included Business benefits Pre-defined Solvency 2 content providing a major

implementation accelerator integrated with the BFC pre-configured

consolidation reports Assuring consistency of quantitative reporting

templates Reporting and Data Visualization Ready basis for the creation of the qualitative

reports

Disclosure Management for Solvency 2 Regulatory Reporting: scope and benefits

65 preconfigured QRT templates (including the Financial Stability template)

QRT-structure mapped on the BFC data-model Reporting workflow templates Chapter structure for RSR and SFCR

This can also be implemented on a non-BFC source but will require additional mapping effort with the source data-model


In the system

Key process flows covered Reporting workflow for the quantitative reporting templates Reporting workflow template for RSR and SFCR

– Creating the report structure– Editing of chapter documents– Finalization of the consolidated report content

Service Delivery


ImplementationTestingKey User Training

Successful rollout and adoptionConfiguration documentation

Get a footprint for Solvency 2, Pillar III live in 12 weeks

Start RunDeploy

Expectations

1 3

Project managementKick-off workshop participation Check technical infrastructure

Mutually-approved scope document

Working SAP system

User-acceptance testingOnsite and remote support

2

Note: This slide represents a typical deployment. Exact details may differ according to solution.

Results

Superior support to ensure smooth functioning


Implementation Options – implementation time

FC + DM Week 1 2 3 4 5 6 7 8 9 10 11 12

Financial Consolidation (50 days)

Disclosure Management (35 days)

FC only Week 1 2 3 4 5 6 7 8 9 10 11 12

Financial Consolidation (50 days)

DM only Week

1 2 3 4 5 6 7 8 9 10 11 12

Disclosure Management(95 days)


Pre-defined Services for Rapid Deployment Solutions

Your path to Go-Live: fast, efficiently and at predictable cost Fixed-price Implementation Services Pre-defined Project Methodology Ready-to-use Accelerators

Start RunDeploy1 32

Project managementKick-off workshop participation Checking technical infrastructure

Accelerators / DeliverablesConsulting Delivery GuideProject scheduleWBSService Delivery Model, roles and

responsibilitiesRequest for consultants templateProcess descriptionsProcess-flow-documentsKick-off presentationConsumption GuidePre-delivery requirements and

checklist

Solution RealizationMaster Data LoadRefinement Workshop &

Refinement RealizationKnowledge Transfer to Key Users

Accelerators / DeliverablesInstallation guideSolution DocumentationSolution Manager contentBest-Practices content

(pre-configuration)Configuration activitiesConsulting Delivery GuideImplementation Content

Performance TestsEnd User TrainingSign off of solutionGo-Live PreparationGo-LivePost go-live support and activitiesImprovements and road map

workshop

Accelerators / DeliverablesTest casesDeliverable acceptance formsTraining Materials –

Process-flow recordings etc.Go-Live Checklist



Configuration Guide

Scoping Questionnaire

Kickoff Workshop

Project Schedule

Support PortalCheck Lists

Implementation methodology

Start RunDeploy1 32



Project plan and timelines

Prepare Project

Kick off workshop

Select Options

Check Installation

SAP involvement Customer involvement

Start RunDeploy1 32

Activate Solution

Confirm Solution

Acceptance Testing

Train Key Users

Set up Customer Data

Transport

End-user Training and Organisation Change Management

Prepare Production

Project Sign-off &Support



What’s included – Service scope

Get a footprint for Solvency 2,Pillar III live in 12 weeks

This RDS comes with three separate service offerings:

•Offering 1, to implement the FC Solvency 2 content

•Offering 2, to implement the DM Solvency 2 content on SAP FC (this complements Offering 1)

•Offering 3, to implement the DM Solvency 2 content on a non-SAP FC source

This provides to the customers the flexibility to choose the services they need.

Find more details of each of the offerings on the following slides

A special step-by-step guide describes each activity during the deployment


What does SAP deliver? What do you have to do?•Provide the customer-data for the elementary values of the FC dimensions and their attributes /characteristics (Entity, Assets, Line of Activity, Treaty id, Placement id, SPV, Risks ...)

•The configuration of upstream and downstream interfaces

•The mapping between the IFRS statutory consolidation and the IFRS column included in the Balance sheet data packages for the IFRS / Solvency II reconciliation process (for both the chart of accounts and for the IFRS consolidation journal entries)

•The customer defines the list of users, their functional profile and the data access groups

•The customer will perform User Acceptance Tests in order to validate the whole application

Offering 1 (FC), Key deliverables (1/2)

•The SII pre-configuration standard documentations and installation procedure

•The Blue Print document (this document needs to be validated by the customer) as per the ASAP methodology

•Assistance and process for updating the elementary values of the FC dimensions and their attributes / characteristics in the FC dimension builder with the customer Master data

•The integration of FC with Disclosure Management Installation (implementation on thick

•clients computer only and for 5 computers at the same location)

•A methodology to support the customer for performing the mapping / Datalink definitions between sources systems and FC 10.0, if required


What does SAP deliver? What do you have to do?•The customer performs the historical data loading (comparative data)

•The customer is in charge of updating the Solvency II pre-configuration standard documentation with the customer-specific changes

•The customer is in charge of organizing and lecturing the FC End users training (logistic aspects, training rooms, technical architecture, preparation of the training materials)

Offering 1 (FC), Key deliverables (2/2)

•Testing scripts for data collection, controls, adjustments, elimination and analysis

•A methodology to support the customer for performing the historical data loading

•A methodology to support the customer for organizing the FC end-user training. SAP delivers

•also standard business process documentation to ease the preparation of this end-users training.

•go live support / implementation validation


What does SAP deliver? What do you have to do?•The customer defines for SAP Disclosure Management the list of users, their functional profile and the workflows


•The customer performs the historical data loading (comparative data)

•The customer is in charge of updating the Solvency II pre-configuration standard documentation

•The customer is in charge of organizing and lecturing the Disclosure Management end users training (logistic aspects, training rooms, technical architecture, preparation of the training materials)

Offering 2 (DM on SAP-FC), Key deliverables

•The Solvency II pre-configuration standard documentations and installation procedure

•Update of the Solvency II pre-configuration, with regard to the customer specific Master data

•Installation check report for 2 environments : 1 test and 1 productive

•Testing documents

•A methodology to support the customer for organizing the SAP Disclosure Management end-user trainings. SAP delivers also standard business process documentation to ease the preparation of this end-users training.

•Implementation validation assistance


What does SAP deliver? What do you have to do?•The customer defines for SAP Disclosure Management the list of users, their functional profile and the workflows


•The customer performs the historical data loading (comparative data)

•The customer is in charge of updating the Solvency II pre-configuration standard documentation

•The customer is in charge of organizing and lecturing the Disclosure Management end users training (logistic aspects, training rooms, technical architecture, preparation of the training materials)

Offering 3 (DM on non SAP-FC), Key deliverables

•The Solvency II pre-configuration standard documentations and installation procedure

•Update of the Solvency II pre-configuration, with regard to the customer specific Master data

•Installation check report for 2 environments : 1 test and 1 productive

•Testing documents

•A methodology to support the customer for organizing the Disclosure Management end-user trainings. SAP delivers also standard business process documentation to ease the preparation of this end-users training.

•Implementation validation assistance


Project team: SAP

SAP Project Lead Serves as a central contact person, from project

initiation to going live and support On the SAP side, responsible for functional project

management, coordination, support and coaching of the customer’s project manager, and so on

SAP Consultants Responsible for implementation of the agreed upon

scope for the rapid-deployment solution


Project team: customer

Leading Project Manager Serves as a central contact person, from project initiation

to going live and support On your side: responsible for functional and commercial

project management, coordination, overall project controlling, preparation of steering committees, and so on

Basis staff Especially responsible for the installation and administration

of the development and productive system landscapes

Functional department staff / key user Responsible for workshops, questions from SAP,

end-user training, and possibly as a power user for simple configurations

Specialized Staff (Optional) Responsible for further specialized areas such as customization and configuration


Technical Details


Software Requirements

Product Product Version ComponentLogical Component in SAP Solution Manager*

Comments

SAP BusinessObjects Financial Consolidation

10.0 Not applicable Not required

SAP BusinessObjects Disclosure Management

10.0 Not applicable Not required

Microsoft Office Excel 2003 or higher Not applicable Not required


System landscape

SAP Financial Consolidation business content

Financial InformationManagement

SAP Financial Information Management (FIM)

Front-end reporting tools (Dashboards, Web portal…)

Solvency II (SII) data model (analyses)

Solvency II (SII) data model (analyses)

SII input schedules (figures & comments) and controls

SII input schedules (figures & comments) and controls

SII consolidation (figures & comments) and calculations

SII consolidation (figures & comments) and calculations

SAP Disclosure Management business content

QRTs , IFRS/S2 reconciliation and validation reports

QRTs , IFRS/S2 reconciliation and validation reports

Task to schedule upload high volumes of metadata

(Custom development)

SAP Rapid-Deployment solutionsThe fastest way to run your business better

More information: http://service.sap.com/rds-sii3

Documents

Solution Details SAP Rapid Deployment Solution for Solvency II Regulatory Reporting