OREANDA-NEWS. September 25, 2008. National Insurance Group, SAP and Energy Consulting Group announced about commencing of experimental-industrial operational use of the first Russian implementation project SAP for Insurance related to the specialized business solution for the insurance companies, reported the press-centre of Energy Consulting.

Corporate information system on a basis of the SAP business solutions in National Insurance Group started to be implemented in 2007 and it consists of some stages.

In the frame of the project the following managing decisions have already been implemented:

Financial management in all fields,

HR management,

Management in duties and payments.

Apart from that the solutions for strategic planning and budgeting are in process now. To the present day the number of system’s users is 60.

The next stage envisages implementing of the business solution which could help to manage by services and losses in National Insurance Group, to develop insurance products and to organize cooperation with distributors more effectively. Functionality of the SAP service Losses Management (FS-CM) can help to solve such important issues as administration of the losses’ history, cooperation with partners, monitoring of the loss ratio and the loss life cycle which could help to define the stage and the place of a certain insurance case.

Implementation of the SAP module Commission management (FS-ICM) will allow to solve the problem of the distributing channels control: we will have accurate measurable indices, due payments, complex and cross sales. In addition to that the commission remuneration will be dependable on the volume and the results of a company’s activities. 

Andrey Tikhiy, a Head of SAP Insurance Department in CIS, emphasizes that "cooperation with the Russian underwriters is one of the most significant routes of the SAP Company’ activities. National Insurance Group is the first Russian company which has made decision to build a business management system based on the solutions of our company.

We appreciate this trust very much because the insurance market in Russia has unique and specific peculiarities for our country. And the first one who manages to use new techniques of insurance business management which have already been used by many international underwriters – this man would have unique competitive advantage for his business at the Russian market".

According to the opinion of Kirill Balashov, IT Director of the National Insurance Group, "at the next stage we should implement front-end system that could support the insurance policy management and the agents’ work. Upon this stage completion almost all the processes in the company excluding non-remunerative ones, will be computerized.

The more functionality of the IT system is implemented the more transparency and competitiveness of a company and the less expenditure we will have. An additional point is that the process of making decisions could become easier and more flexible.

Quoted to Alexander Ulanov, Project Manager of National Insurance Group, "this project is unique at the Russian insurance market. For the first time ever the Russian insurance business will apply the opportunities of the specialized business solution SAP for Insurance in full range. It will be applied in close relations with strategic managing decisions of the company, financial management and HR management. Our experts have succeeded in the assigned mission and now they have valuable experience to apply this business solution in practice".