The Indian Insurance industry is a flourishing one which has several national and international players who compete for excellence. With several reforms and policy regulations, the Indian insurance sector has witnessed tremendous growth in the recent past.
India having around 17% of the world’s population is a largely untapped market. Nearly 80% of the Indian population being without a life, health and non – life insurance, a growing number of insurance companies are now emerging in the Indian insurance sector. With the opening up of the economy, several international leaders in the insurance sector are trying to venture into the India insurance industry.
The growth in the insurance industry directly impacts the reinsurance industry. Reinsurance providers are basically companies that provide insurance cover to insurance companies so as to cover their risk. With the growth in the amount of insurance products sold by the insurance companies their risk component goes on increasing. So as to cover this risk, companies resort to reinsurance. Thus the reinsurance market is all growing at a rapid pace.
The growth of the Reinsurance industry in India is coupled with a number of challenges. Challenges faced by the reinsurance industry include shrinking margins, increasing competition etc. In order to meet the challenges, reinsurance companies across the globe have begun leveraging heavily on their information and communication technologies.
Reinsurance firms are using enterprise management solutions to increase productivity, save on expenses, to obtain higher customer satisfaction, thereby resulting into customer retention and to improve sales performance.
General Insurance Corporation of India (GIC Re) is the sole reinsurance company in the domestic reinsurance market in India with more than three decades of experience in the Re-Insurance business. GIC is headquartered in Mumbai.
In India, GIC provide reinsurance to the direct insurance company as it is the sole reinsurer in the market of domestic reinsurance. It is one of the leaders in the facultative placements and domestic companies’ treaty programmes.
OBJECTIVES FOR ENTERPRISE RESOURCE PLANNING SYSTEM 企业资源规划系统的目标
The key objectives for initiating ERP implementation were as follows:启动企业资源规划实施的主要目标如下
So as to retain leadership position in the national (Indian) reinsurance market.以便在国家（印度）再保险市场保持领先地位。
The intention of emerging as the leader of reinsurance in the Afro – Asian markets.成为亚非市场再保险领导者的意图。
To obtain an integrated view of all business transactions. 获取所有业务事务的集成视图。
MAJOR BUSINESS CHALLENGES FACED BY GIC RE GIC RE面临的主要业务挑战
The change in focus of the organization to being customer-centricity created a number of issues for the company.组织重心向以客户为中心的转变为公司带来了许多问题。
It became important to have optimal knowledge of all the customer segments.对所有客户细分市场有最佳的了解变得非常重要。
Customized products and services were required to designed to meet the needs of each of the identified customer segments.需要定制产品和服务，以满足每个确定的客户群体的需求。
It became important to adopt cross selling of products and services as an important growth strategy.将产品和服务的交叉销售作为一项重要的增长战略变得非常重要。
It also became important to provide any time and any place reachability to the customers.为客户提供随时随地的可达性也变得很重要。
The growing number of players in the market created an environment of intense competition 市场上越来越多的参与者创造了激烈竞争的环境
In order to sustain such levels of competition it became imperative for the company to adopt new strategies and identify means of securing a competitive advantage over its competitors.为了维持这样的竞争水平，公司必须采取新的战略，并确定确保其竞争对手的竞争优势的方法。
Expansion of company operations across multiple geographical locations also made it necessary for GIC Re to identify means of effective monitoring and control.公司业务在多个地理位置的扩展也使得GIC Re有必要确定有效监控和控制的方法。
Expansion also increased the level of competition by adding new competitors from the new geographical locations.扩张还增加了来自新地理位置的新竞争者，从而提高了竞争水平。
Product Commoditization 产品商品化
The increase in competition was impacting the company’s profit margins.竞争的加剧正在影响公司的利润率。
It became absolutely necessary for the company to distinguish its brand from competitors.公司将其品牌与竞争对手区分开来是绝对必要的。
Lower customer loyalty and increasing price sensitivity were also measure threats to GIC Re.降低客户忠诚度和提高价格敏感性也是GIC Re面临的威胁。
It was important to bring about a consolidation across the organization so as to deliver a clear value to its customers.重要的是在整个组织中进行整合，以便为客户提供明确的价值。
Expansion of operations across multiple geographical locations made its imperative to comply with multi-national regulations.跨多个地理位置的业务扩展使得必须遵守多国法规。
MAJOR IT CHALLENGES FACED BY GIC RE GIC RE面临的重大IT挑战
Data Quality 数据质量
Data maintained by the organization was fragmented by the line of business, the branches, the different geographical locations etc.组织维护的数据按业务线、分支机构、不同地理位置等分散。
It was important to consolidate this data and provide high quality of product and operations related data.整合这些数据并提供高质量的产品和运营相关数据非常重要。
Process Integration 过程整合
It was important to standardize and streamline cross functional processes and develop and integrated workflow.标准化和精简跨职能流程以及开发和整合工作流程非常重要。
The company was suffering from value leakage due to non integration of systems. 由于系统未集成，该公司遭受了价值泄露。
Legacy IT Systems 传统IT系统
The legacy system used by the company did not reflect the change in focus from being a contract centric to customer centric insurance provider.该公司使用的传统系统没有反映出重点从以合同为中心向以客户为中心的保险提供商的转变。
Reduction of Operation Complexity 降低操作复杂性
The company used a number of applications to manage the daily activities.该公司使用了许多应用程序来管理日常活动。
As a result, a number of interfaces had to be monitored and managed which proved to be very difficult.因此，必须对许多接口进行监控和管理，这证明是非常困难的。
It thus became important to reduce the number of interfaces and bring about standardization across the interfaces.因此，减少接口数量并实现接口间的标准化变得非常重要。
EXPECTATIONS FROM ERP ERP的期望
Reduction in overall cost through improved efficiency and increased productivity 通过提高效率和生产率降低总体成本
Drive business innovation 推动业务创新
To a give a competitive advantage to the company over its competitors 使公司比竞争对手具有竞争优势
Driver for business growth 业务增长的驱动力
Improve overall customer experience and satisfaction 提高整体客户体验和满意度
Ensure regulatory compliance 确保法规遵从性
Support global operations 支持全球运营
Create new revenue streams for the company 为公司创造新的收入来源
Ensure growth of existing revenue streams 确保现有收入流的增长
CHOICE OF SAP SAP的选择
The major factors contributing to the choice of SAP are as follows:选择SAP的主要因素如下
Integrated Enterprise platform for transacting GIC’s business 用于处理GIC业务的集成企业平台
The company required a platform that would integrate all the processes and procedures across the enterprise.该公司需要一个能够整合整个企业所有流程和程序的平台
The system was required to standardize all processes and streamline set of processes across the organization rather than streamlining large number of procedures.该系统需要使整个组织的所有流程标准化，并精简一套流程，而不是精简大量程序。
The company expected the have an enterprise wide visibility of business operations.该公司希望在整个企业范围内都能看到业务运营。
SAP Reinsurance solution being used by Global Industry leaders – Munich Re and Hannover Re 全球行业领导者慕尼黑再保险公司和汉诺威再保险公司正在使用SAP再保险解决方案
One of the major contributing factors to choosing SAP was the company’s biggest competitor and the global industry leader Munich Re and Hannover Re had implement SAP Reinsurance system.
Adoption of the global best practices 采用全球最佳做法
By 2005, SAP Insurance had almost all insurance service providers running it.到2005年，SAP Insurance几乎拥有所有保险服务提供商。
SAP had in the past implemented both the insurance and reinsurance packages for multiple clients.SAP过去为多个客户实施了保险和再保险方案。
This enabled SAP to gain an understanding of the global best practices in the prevalent in the industry.这使SAP能够了解行业中流行的全球最佳做法。
GIC Re hoped to reap the benefits of this knowledge in their own implement of SAP Reinsurance.GIC Re希望在自己实施SAP再保险时从这些知识中获益。
Most companies who had previously implemented ERP had strong positive experience with SAP for their insurance portfolio 大多数以前实施过ERP的公司在SAP的保险产品组合中都有很好的经验
SAP FS-RI is an insurance solution that enables reinsurance firms, direct insurers and brokers to achieve a reinsurance process that is completely integrated and streamlined.
SAP FS-CD – Collections / Disbursements SAP FS-CD–收款/付款
SAP FS-CD is a solution designed for insurance service providers to standardize and streamline their billing and disbursement activities for their policyholders and agency holders.
SAP IM-IC (CFM) – Investment Management SAP IM-IC（CFM）–投资管理
SAP IM-IC (CFM) module provides useful tools for reporting of WBS which are in progress, PO commitments and assets that have been capitalized.
SAP FI-CO – Finance SAP FI-CO–财务
The SAP FI-CO module can be viewed as the core of the integrated SAP system as it deals with the monetary impacts on business and other modules of SAP.
SAP HR – Human Resources SAP HR–人力资源
SAP HR is the largest module implemented SAP HR是实施的最大模块
It deals with the management of human resources and human capital 它涉及人力资源和人力资本的管理
SAP BIW – Business Intelligence SAP BIW–商业智能
SAP BIW is the business intelligence module that provides analytical, reporting and data warehousing solution SAP BIW是提供分析、报告和数据仓库解决方案的商业智能模块
IMPLEMENTATION CHALLENGES 实施方面的挑战
First SAP Reinsurance (FS-RI) implementation outside Europe.在欧洲以外地区首次实施SAP再保险（FS-RI）。
First SAP FS-CD Implementation in India.在印度首次实施SAP FS-CD。
First SAP IM-IC implementation in India in an Insurance/Reinsurance environment.在印度保险/再保险环境中首次实施SAP IM-IC。
One of the few Active Reinsurers in the world using SAP FS-RI 世界上少数使用SAP FS-RI的活跃再保险公司之一
Legacy data Migration 旧数据迁移
Customisation of Reinsurance Module (FS-RI) 再保险模块（FS-RI）的定制
Risk Manager in FS-RI (Facultative Business) had not yet been implemented even in Europe 即使在欧洲，FS-RI（临时业务）的风险经理也尚未实施
IMPLEMENTATION HIGHLIGHTS 实施亮点
Opportunity to critically re-look the company’s business processes and practices and incorporate changes wherever required.有机会批判性地重新审视公司的业务流程和实践，并在需要时纳入变更。
Elimination of data inconsistency by correcting, validating and cleansing legacy data.通过纠正、验证和清理遗留数据消除数据不一致。
Opportunity to streamline the organisation by adopting the global best practices in the industry 通过采用行业内的全球最佳实践来简化组织的机会
BUSINESS BENEFITS 商业利益
Tight integration between underwriting and technical Accounting processes thereby providing better business focus.承销和技术会计流程之间的紧密集成，从而提供更好的业务重点。
Integrated processes eliminating almost all redundancies and inter-departmental reconciliations.整合流程消除了几乎所有冗余和部门间对账。
Increased automation reduced manual intervention and improved data quality.自动化程度的提高减少了人工干预，提高了数据质量。
Improved reserving process (tracking the development of outstanding loss reserves).改进了准备金流程（跟踪未偿损失准备金的发展）。
FINANCIAL & STRATEGIC BENEFITS 财务和战略利益
SAP allowed visibility of all assets SAP允许查看所有资产
Standardized evaluation of all assets were achieved 实现了所有资产的标准化评估
Daily updates to the investment portfolio enable the company to achieve integrated investment management 投资组合的每日更新使公司能够实现综合投资管理
Effective real time risk analysis 有效的实时风险分析
TOTAL COST OF OWNERSHIP 总拥有成本
95 % of the company’s requirements were met by th standard solution offered by SAP and minimal customization was required
OPERATIONAL BENEFITS 运营效益
The operation benefits as evaluated by the company after two years of implementation are as follows:实施两年后，公司评估的运营效益如下
KEY PERFORMANCE INDICATORS (KPI) 关键绩效指标
Time to measure performance 衡量绩效的时间 -70%
Time to plan for new projects and activities 计划新项目和活动的时间 -30%
Time to performance market risk analysis 按时完成市场风险分析 -80%
Efforts to map sources of risk 绘制风险来源图的努力 -80%
Reporting Flexibility 报告灵活性 +90%
Quality of Reports 报告的质量 +80%
Quality of Portfolio evaluation 投资组合评估质量 +90%
Quality of transaction mapping 事务映射的质量 +90%
FUTURE PLANS 未来计划
Up gradation from SAP R/3 Version 4.7 to SAP ECC 6.0 platform 从SAP R/3 4.7版升级到SAP ECC 6.0平台
Connecting offices in Moscow, Malaysia and South Africa to the upgraded ERP network
General Insurance Corporation of India has derived significant benefits from implementation of SAP Reinsurance. From this case it is evident that SAP has the potential of being a measure source of improved efficiency and competitive advantage for insurance service providers.
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