Ensuring a Digital Future for Insurance
Our increasingly digital world means that insurance companies need to manage customers’ and partners’ changing expectations, stronger competitive pressures, and evolving payment methods. With most legacy and billing payment systems ill-equipped to deliver value within this changing landscape, companies need to look at new business models that can transform these systems from a traditional finance-centric function to a more customer-focused function.
What do insurers need to do?
Consumer demand for more diverse billing and payment services coupled with competition from noninsurance firms (providing insurance coverage) is resulting in the need for insurers to combine the billing of noninsurance services, such as retail, with insurance services through “convergent” invoicing.
Also, digital payment developments, thanks to credit cards and real-time applications, require insurance companies to handle the capture of payment data through reconciliation with credit card companies and payment service providers, as well as incoming payment matching.
So how can insurers do all this?
In a nutshell, by using five SAP solutions that are streamlining financial management. The SAP Collections and Disbursements for Insurance application provides centralized billing and payments processes through business process automation and integration with operational and back-office systems.
Leveraging innovative, subscription- and usage-based business models, the SAP Billing and Revenue Innovation Management solution sells bundled services and efficiently manages revenue streams. As part of this, the SAP Convergent Invoicing package consolidates billing services.
The final two solutions embrace the cloud environment and intelligent machine learning respectively. The SAP digital payments add-on delivers flexible payment options and faster claim payments, while the SAP Cash Application software facilitates automatic invoice-payment matching and clearing.
The benefits that all these solutions bring are numerous and noticeable across all areas of a business. Think greater: business process efficiency, revenue, cash flow, transparency and compliance, workforce productivity, service quality, and customer satisfaction and loyalty. In parallel, think lower: write-off volumes, total cost of ownership, transaction costs, day sales outstanding, and revenue leakage.
So, if your company is keen to reposition back-office systems as automated, integrated, and optimized business processes that befit a more marketing-oriented offering, look no further. Full details about these solutions and potential benefits to your business can be found in this solution brief