1. SAP-Insurance conference June 2008
Ruslan Torgovetsky – SAP (FS-CM) implementation manager
Yosef Goldberg – SAP (FS-CD) implementation manager
Clal Insurance Implementation

2. Agenda
• CLAL Insurance
• History and decisions
• Project overview
• Conversion
• System architecture
• Payment Shell program
• Integration
• Vendors management

3. Clal Insurance Ltd.
• Israel’s leading insurance, pensions and finance Group
• Established in the 1970’s
• 3,300 employees and more than 1,000 agents
• AA rated by Standard & Poor’s subsidiary in Israel
• Market cap. 5.6 NIS billion. (*)
• Traded on the TASE (TA 25 Index)
(*) January 2008

4. Clal Insurance Ltd.`
Guard
Titanium
Broadgate
Clal Romania
Clal Israel

5. Clal Insurance Ltd.`
Assets under management (NIS billion)
23 29
48
59
93
7
14
31
33
7
7
2003 2004 2005 2006 2007
Financial services
Non-life & equity
Long-term savings
133
96
69
41
32
316%

6. Some historical facts
• Decision to convert legacy Cobol system – March 2004 (SAP-Sapians)
• At decision time – only 1 live CM implementation world wide (No Hebrew)
• 2004-2005 – Parallel BBP of all line of businesses (plan to go live
simultaneously)

7. Decision factors
SOXSOX
RegulatorRegulator
CompetitionCompetition
ISOISO
OperationOperation
efficiencyefficiency
DataData
analyzinganalyzing
TechnologyTechnology
Current situation before SAP
•Old system on the Cobol platform
•Inflexible
•Lack of documentation about
programs
•Lot of interfaces
•Several different applications,
for a claim management

8. SAP FS-CM/CD solutionSAP FS-CM/CD solution
Decision factors
MSS
Claim management
Clearing houses
system
AVIV
Suppliers
WINS/FN
Documents & Task
PAYLINK
Payments system
Foreclosure
system
All systems for a claim management

9. Major decisions
• Go-live by departments (Motor body liability 1st, Car comprehensive 2nd)
• BBP starting with CM stand alone. CD starts late 2005.
• Tight integration of SAP CRM existing system (2 years old, 7 million BP’s,
>200 users)
• Integration of document management into CM
• Integration of payment system
• Upgrade to ECC 6 in June 2006
• Upgrade to support package 9 between the 2 department
implementations (August 2007)
• Use SOA

10. • We started with Motor body liability on 03.2007.
• The department consists of 70 users.
• Migration Process:
• 250,000 Claims, Including 50,000 open claims with following objects:
• Damage objects (Injure, vehicle).
• Reserves, payments.
• Documents, tasks, notes.
• Litigation, coverage referrals.
• Interfaces:
• Online:
• Policy systems.
• Imaging system (File Net).
• Medical vendors system.
• Batch:
• Developing about 20 batch interfaces with different clearing
houses.
• Foreclose management system.
• DWH.
Project overview

11. • Next step started May 2007. Went live 01.01.08 with car
comprehensive department:
• The new objects:
• Subrogation
• Salvage
• Negotiation
• Limits and Deductibles
• Department consist 150 users.
• 5 different centers.
• Next step - 2 departments: Property and liability during 2008
(100 users).
• Future plans – Health and Life during 2009 (50 users).
• At the same time (01.01.08) going live with ERP project FI, CO, MM
modules.
Project overview

12. • Main Issues
• Using DI processing (on-line has to be in production)
• Depth of migration (closed/opened/re-opened)
• Correct data on the fly or in legacy system
• Infrastructure (Business Partners, Bank accounts, Addresses, conversion
tables).
• System environments (DEV-QA-PREPROD, PROD - clients,
surrounding systems…)
• Main problems after go-live
• Online reports/Integration into DWH (change of main entity structures)
• Batch Interfaces of converted data
• Response time/sizing issues
Conversion

13. SAP R/3
FS-CM
FS-CD
ERP
PrintBoss
Forms Management
FileNet
Archive Document
XSF
Archive
Web Service
SAP CRM
One-way BP replicationOne-way BP replication
from CRM to R/3from CRM to R/3
**Distribution of organizationDistribution of organization
structurestructure
from R/3 to CRM using ALEfrom R/3 to CRM using ALE
(SAP standard(SAP standard((
Batch
interfaces
Informatica
DW
Financial report
Reinsurance report & calculate
Files with data per claim
Data to specific date
System architecture
Web
Method
Policy
System
Medical
System
appraisers
System
Checks
External Media
MSS
Web
Service

14. SAP CRM
ODS-DB
Central database
Business Partners
From Legacy systems
SAP R/3
CM / CD / ERP
Business Partner
One way Replication
from CRM to R/3
Identical Customers master data
SAP CRM / SAP R/3
Create / Change Business partner
from claims “mini BP” to CRM
Using RFC functions
System architecture

15. 1. Open File Request
2.
Managing
File
3. Initial Damage
Evaluation Report
4. Fluent Document
and Data Report
Car
Assessment
applic.
(external
applic)
System architecture – Appraisers system
SOA ImplementationSOA Implementation
Reserves update
Tasks open
Salvage management

16. Claims Management
IBM FileNet
SAP Claims
Management Claims
Handler
Web Services
Document Management
System
Document Management
System
Claim Handler’s Workplace (SAP)
• Tasks management
• Received documents
• Unrecognized document
• Adopt and substitute
• Viewer connection
SAP Claims Management
• Forms management
• Tasks management
• Archive documents
• Change archive, change type of document
• Documents distribution by email, fax, print
System architecture – Documents management

17. Documents management with third party system
System architecture – Documents management

18. Claim Management, Documents and Task system in SAP
NOTES
System architecture – Documents management

19. • First department assimilation - 3 months.
• Conclusions for next departments :
• Infrastructures (servers, hardware, user interface).
• Department involvement in decision and assimilation.
• Instruction, and user guides, procedures changes.
• Don’t implement a lot of BRF’s in first stage (from 120 pre-
production to 25 after go-live).
• Affect of conclusions implementation - Comprehensive
department assimilation took two weeks.
Main issues after go-live

20. FS-CD - Goals
• Producing media for payments orders created in CM
and paid by CD based on:
• Clal’s company business rules
• Global accounting rules
• The legal environment and statutory regulations in
Israel

21. Payment Shell program
• Functionalities:
• Flexibility while collecting payments order into 1 media
• Producing media according to user authorizations
• Flexible user interface
• One process starting with the selection of payments orders
and ending with media producing
• Deduction between different claims
• External systems deduction (premium debts)
• Paying approximately 7.5 M. NIS a day (only 2 departments)

22. Payment Shell program

23. Payment Shell program

24. GL Integration
• Transferring mass payments data collectively to FI
module
• Drill down from the accounting document in the
GL to the payment order document in the CD
• Feedback from the bank statements to the CM & CD
regarding the payment order status

25. Vendors Management
• Functionalities:
• Managing all vendor’s objects (BP master data, contract account,
insurance object) in 1 workplace
• Preserving the basic architecture of CRM as source system handling all
BP’s data and distributing to all the organization’s systems
• Retrieval of vendor’s payment data used by CM & ERP modules in
central process
• Managing conversion table between BP data to FI vendor (BP Role to
industry code)
• Managing conversion tables between BP data to external systems
• Interfaces to external systems administrating all BP data in SAP CRM

26. SAP CRM
ODS-DB
Central database
Business Partners
From Legacy systems
SAP R/3
CM / CD / ERP
Business Partner
One way Replication
from CRM to R/3
Identical Suppliers / Customers master data
SAP CRM / SAP FS CM&CD / SAP ERP
Create / Change Business partner
from claims “mini BP” to CRM
Using RFC functions
System architecture

27. Vendors Management

28. Vendors Management

29. Vendors Management

30. Vendors Report
• Functionalities:
• Displaying Payments to be paid for initial check
• Sending mail and fax notification to vendors
containing Excel & HTML files regarding payments
to be transferred
• Keeping all sent files in history directory
• Ability to extract history files at any time

31. Vendors Report

32. Vendors Report

33. START
SKY IS THE LIMIT
Conclusion