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Author's profile photo Jochem Schueltke

Insurance: With SAP Policy Management (FS-PM) customers and intermediaries can change existing insurance policies online

Dear All,

After many discussions with customers, prospects, consulting partners, and colleagues, I’m convinced that SAP owns a treasure for insurance companies that needs to be raised: SAP Policy Management (FS-PM).

SAP Policy Management provides a key-feature that could change the insurance business globally. It can speed up daily business, and reduce costs – while increasing insurance customers’ and intermediaries’ satisfaction … the next generation is aready available.

What I am talking about?

All business processes and transactions, which are provided in FS-PM standard (and they are impressive), have been ‘background-enabled’. An insurance customer (e.g. policyholder, insured) or an intermediary can change an existing insurance online, anytime and autonomously. This powerful FS-PM capability goes far beyond new business, which has already been automated for years.

Behind these technical terms is a great potential for changing the game in the insuance industry, providing the highest level of self-service: various changes of existing policies can be processed via any user interface, from any device, even from a smartphone or tablet.

It doesn’t matter, if mid-term adjustments, or out of sequence changes need to be made, or whether they are backdated or should be valid in future.

Think about intermediaries like insurance brokers, agents, and banks. And consider also policyholders and insured. For example: if they want to change the payment frequency of their existing policy from monthly to semi-annually, they can just do it for example via a web page immediately.

Utilizing FS-PM there is no need for manual intervention from a clerk or policy handler, who is usually keying in the same data in the policy system again, which has been requested via letter, e-mail, fax, phone call, or entered in a ‘front-office’ software application that is – very often – not tightly integrated (e.g. agent system, portal, and so on).

FS-PM provides a lot of APIs for simple as well as for complex policy changes that can be wrapped into RFC function modules, and exposed as web services or OData services. Of course, they include all validations, values, and dropdown lists. Thus, the business logic does not have to be rebuild on the front-end side once again.

Either existing front-office software can ‘consume’ such Web Services, or appropriate dialogues will be build on the customer side, and made accessible via a customer-tailored web page or a broker portal for instance. Particularly, responsive HTML5 web pages can be used for building intuitive dialogues, dedicated to specific roles (e.g. call center agents, sales representatives, brokers, agents, policyholders, or insured), quickly and with limited effort.

If an insurance company can provide customers or intermediaries with a step-by-step guidance to process changes of existing policies, this insurer will be a business process leader in the market – not only a thought leader.

Let’s raise the FS-PM treasure.

Best regards,


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      Author's profile photo Former Member
      Former Member
      Probably first blog on SDN about FS-PM :).
      We would love to read more about the same from Insurance leadership at SAP and from our Partners.
      Author's profile photo Former Member
      Former Member
      Really a good brief precise blog on FS-PM.


      Author's profile photo Heiko Maurer
      Heiko Maurer
      Fully agree to Jochem's statement regarding the 'hidden treasure' we have with FS-PM.

      Apart from the comprehensive functionalities in FS-PM, especially the integration aspects and the software architecture itself do support current standardization and automatization activities in the insurance sector. 

      Looking forward to raising the treasure,

      Author's profile photo Former Member
      Former Member
      This is a welcome post as I can attest that when we've presented FS-PM to customers the response is always, WOW. SAP is the only vendor capable of fulfiling the end to end processess of an insurance company with a SOA enabled real-time application. The unique design concepts of in-force buisiness configuration allowing fast product configuration and release in a seperate product desgner, along with the time-model supporting complex processess like out of sequence endorsements and automated treaty to fac reinsurance integration make this a game changer for insurance companies with the foresight to take on a core system transformation. Let's get the message out !
      Author's profile photo Former Member
      Former Member

      The post you shared here is full of knowledge and information. But there are many insurance venders who are capable of providing end-to-end insurance policy management services to the insurance companies all over the world. There are many procedures by which you can change your existing insurance policies online. It also can be done by using different types of insurance policy management softwares. So, in the end and from my point of view, the policy management softwares are the best way to change your insurance policies online.

      Author's profile photo Jochem Schueltke
      Jochem Schueltke
      Blog Post Author

      Hi Ben,


      Thanks for your feedback. I did some research regarding capablities of existing policy management software. As far as I found out, there are still only very few policy administration systems, which allow policyholders, insured persons and intermediaries (e.g. agents, brokers) to process policy changes online (real-time) themselves.


      In many cases insurance companies or software vendors developed stand-alone facades, which pretend to provide these capabilities to the outside world. From the perspective of a policyholder, insured, agent or broker it seems that you can change an existing policy online.


      But behind the scenes, there are no OData services, web services, APIs, or Remote Function Calls, which are offered on part of the policy administration system. Policy handlers or clerks are typewriting the changes that have been entered by the user (policyholder, insured, or intermediary) – utilizing such a facade – manually once again in the policy system. With regards to changes, that’s still the reality in many cases, as far as I could see – in contrast to new business, which is really processed online.


      SAP Policy Management (FS-PM) provides the capability of changing existing policies to external users. Nobody must key in once again the changes, which have been carried out by the policyholder, insured, or intermediary. In this case the facade (a separate user interface, for example developed using Angular2) is directly interlinked to FS-PM.


      Best regards,