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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
© 2012 SAP AG. All rights reserved. 4
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
© 2012 SAP AG. All rights reserved. 5
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
© 2012 SAP AG. All rights reserved. 6
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
© 2012 SAP AG. All rights reserved. 7
… 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
© 2012 SAP AG. All rights reserved. 8
Why have customers chosen SAP Rapid Deployment Solutions?
8
Weeksto go-live
15%
Reduction in project costs
4
Week implementation
© 2012 SAP AG. All rights reserved. 9
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
© 2012 SAP AG. All rights reserved. 10
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
© 2012 SAP AG. All rights reserved. 11
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
© 2012 SAP AG. All rights reserved. 12
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
© 2012 SAP AG. All rights reserved. 14
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.
© 2012 SAP AG. All rights reserved. 15
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)
© 2012 SAP AG. All rights reserved. 16
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)
© 2012 SAP AG. All rights reserved. 17
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
© 2012 SAP AG. All rights reserved. 18
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)
© 2012 SAP AG. All rights reserved. 19
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
© 2012 SAP AG. All rights reserved. 20
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
© 2012 SAP AG. All rights reserved. 21
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;…)
© 2012 SAP AG. All rights reserved. 22
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
© 2012 SAP AG. All rights reserved. 24
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
© 2012 SAP AG. All rights reserved. 25
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
© 2012 SAP AG. All rights reserved. 27
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
© 2012 SAP AG. All rights reserved. 28
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
© 2012 SAP AG. All rights reserved. 30
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
© 2012 SAP AG. All rights reserved. 31
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)
© 2012 SAP AG. All rights reserved. 32
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
Note: This slide represents a typical deployment. Exact details may differ according to solution.
© 2012 SAP AG. All rights reserved. 33
Configuration Guide
Scoping Questionnaire
Kickoff Workshop
Project Schedule
Support PortalCheck Lists
Implementation methodology
Start RunDeploy1 32
Note: This slide represents a typical deployment. Exact details may differ according to solution.
© 2012 SAP AG. All rights reserved. 34
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
Note: This slide represents a typical deployment. Exact details may differ according to solution.
© 2012 SAP AG. All rights reserved. 35
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
© 2012 SAP AG. All rights reserved. 36
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
© 2012 SAP AG. All rights reserved. 37
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
© 2012 SAP AG. All rights reserved. 38
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 will perform User Acceptance Tests in order to validate the whole application
•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
© 2012 SAP AG. All rights reserved. 39
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 will perform User Acceptance Tests in order to validate the whole application
•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
© 2012 SAP AG. All rights reserved. 40
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
© 2012 SAP AG. All rights reserved. 41
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
Note: This slide represents a typical deployment. Exact details may differ according to solution.
Technical Details
© 2012 SAP AG. All rights reserved. 43
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
© 2012 SAP AG. All rights reserved. 44
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