investment accounting in the cloud
TRANSCRIPT
>Investment Accountingin the CloudA BearingPoint Accelerator
Many mid- to small-size insurance companies strive to run SAP solutions in asset accounting and reporting (SAP CML, SAP CFM) but are not ready to invest heavily in implementing and running SAP. The cloud technology will allow these companies to exploit the advantages of a SAP based solution without major upfront investment in technical infrastructure, licensing and consulting fees. A template based SAP CML/CFM run in the Cloud will address this issue.
Investment Accounting in the Cloud | A BearingPoint Accelerator
ContentsMarket Drivers
Our Approach
Client Benefits
References
Contact
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Investment Accounting in the Cloud | A BearingPoint Accelerator
Market DriversLow-interest phase, regulation and global megatrends have tremendous impact on insurance companies
Low-interest phase• „Operational excellence“ in the finance
function• Investment Controlling, yield planning and
monitoring• „Intelligent“ trading and investment strategies• Diversification of asset classes (e.g. alternative
investments)• New types of products (e.g. private provisions)
Regulatory Changes • Modernization of the Finance & Risk
landscape driven by IFRS 9 and Solvency II• Solvency II: Implementation of
requirements by 2015/2016 in particular SCR calculation and QRT generation in investment management
• Optimization of investments strategy (SCR) under Solvency II
Global Megatrends• Trend to o�er individual, flexible products (esp.
Generation Y)• Communication with clients (Social Media)• Analysis of customer behaviors (Big Data)• Demographic Change• Massive increase of world wide AuM• Cyber Risks threatening the entire value chain
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Investment Accounting in the Cloud | A BearingPoint Accelerator
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Our Approach Approach to define our solution • O�er a SAP FAM solution in the cloud based on a standardized template that covers 90% of standardized financial
instruments most commonly used in the insurance industry i.e. fixed-income securities
• Our processes will include master and market data, position keeping, investment accounting and reporting
• Our role will be to define the solution and the initial client ramp-up project. To set-up and run the software in the cloud we will probably team up with partners. SAP might be a possible option
Our Approach Potential Scope
Investment Accounting in the Cloud | A BearingPoint Accelerator
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Scope of our solution: Middle & Back O�ce
• Supported by SAP IMA• Supported in SAP ICO
Inte
rface
to S
AP
2. Middle O�ceTrade Entry Mgt.
Broker Matching
Trade Confirmation
Compliance Check
Trading
Master & Market Data
Trade Support
Pre Trade Check
Hedge Strategy
Trade Execution
Asset Servicing
3. Back O�ceCash & Asset Transfer
Cash & Custody Reconciliation
Positioning Keeping
4. Investment AccountingAccounting & Valuation perimeter
Impairment
Tax calculation
Valuation & Accrual
Sub ledger Closing
5. Investment ReportingLocal Statutory & Regulatory Reporting
Investment Monitoring
Group (IFRS) Reporting
6. Investment ControllingInvestment Planning & Controlling
> > > > >1. Master and Market Data Management >
Fron
t-O�
ce N
on-S
AP
Our Approach The draft of the future Cloud based solution will be tailored for small/mid size insurance companies in terms of assets under management and trading activity
Scope and Functions
SAP FAM Standard • Customizing based strictly on SAP FAM standard• Release upgrade path (EHPs) aligned with solution roadmap
Draft of SAP FAM in the Cloud• Focus on listed instruments: bonds, equity and those OTC derivatives which are most commonly
used: IRC, CCS, etc• Accounting is aligned with SAP FI solution Chart of accounts• Supports IFRS (additional GAAPs might be added in the future) and the future mandatory changes
to these accounting standards• Interfaced with the General Ledger in SAP FI and Front-O�ce Systems
Client Specific Add-ons• Additional reporting solutions (e.g. based on SAP BI/BO)• Additional interfaces (e.g. master data)• Specific financial instruments
Investment Accounting in the Cloud | A BearingPoint Accelerator
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Advantages• E�cient ramp-up of processes• User friendly• Frictionless technical architecture• Straight-through processing• Statutory/regulatory Compliance• Flexibility
>
Client Benefits Cost e�cient, modern IT solution:• E�cient ramp-up of processes• User friendly• Frictionless technical architecture• Straight-through processing
Solution will cover statutory requirements related to future IFRS 9 updates
Solution will be upgraded regularly and will thus cover the relevant future EhP enhancements e.g. additional types of financial instruments
All benefits of the cloud: availability, stability, etc.
Investment Accounting in the Cloud | A BearingPoint Accelerator
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References • # 1 Global Insurance Brand - BearingPoint designed and implemented a core SAP FAM solution covering the IFRS accounting
requirements of the # 1 Global Insurance Brand, including numerous European and Asian countries
• International Financial Service Company - BearingPoint designed and implemented a template for a SAP FAM solution covering the IFRS accounting requirements of an international financial service company in the group’s largest countries including Germany and France
• European Insurance Group - BearingPoint designed and implemented a template for a SAP FI/CO/BI and FAM solution covering the IFRS accounting requirements of the entire group including Switzerland, Austria and Germany
• BearingPoint has designed IT Cloud solutions for a variety of clients including SAP clouds
Investment Accounting in the Cloud | A BearingPoint Accelerator
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Investment Accounting in the Cloud | A BearingPoint Accelerator
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References International financialservices provider
International insurancegroup
Regional insurance company
International reinsurancecompany
European Insurance Group
Leading specialist insurer
European multi-line insurer
Leading credit insurer
# 1 Global Insurance Brand
International general insurer
Design & implementation of standardized accounting, reporting and controlling processesSAP IMA & FI Rollout at several corporate unitsImplementation of SAP ERP 6.0 /NewGL for Multi-GAAP
Financial Service Unit: Corporate Reporting (SAP SEM BCS, BI-IP, Portal)Reinsurance Unit: SAP FI/CO template development and roll out
Pre-study to replace a proprietary ERP System by SAP ERP (FI-NewGL, CO, MM)
Pre-study to implement SAP FI NewGLGlobal implementation of SAP FI
Design of an “End-to-End” target architecture and implementation as a hybrid solution based on SAP
SEPA implementation in SAP ERP, FS-CD/ICM, CML
Design and implementation of a global finance architecture based on SAP NewGL; Standardization and optimization of all finance processes
Design and implementation of a global finance architecture based on SAP NewGL, especially economic balance / Solvency II
Development of new finance and treasury architecture based on SAPIntegrated SAP IMA implementation for all units in Europe
New design of an interface architecture between existing and new sub-ledgers to the existing general ledger (Basis SAP)
Focus
StandardizationFinancial architectureInterface processorPrototypingChart of accounts harmonizationSolvency II ReportingFast CloseMaster Data ManagementMulti-GAAP Controlling & PlanningHANASEPA
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About BearingPoint
BearingPoint consultants understand that the world of business changes constantly and that the resulting complexities demand intelligent and adaptive solutions. Our clients, whether in commercial or financial industries or in government, experience real results when they work with us. We combine industry, operational and technology skills with relevant proprietary and other assets in order to tailor solutions for each client’s individual challenges. This adaptive approach is at the heart of our culture and has led to long-standing relationships with many of the world’s leading companies and organizations. Our global consulting network of 9,700 people serves clients in more than 70 countries and engages with them for measurable results and long-lasting success. For more information, please visit: www.bearingpoint.com
Investment Accounting in the Cloud | A BearingPoint Accelerator
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Matthias HoehnePartnerBearingPoint [email protected]
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