investment accounting in the cloud

>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

CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< >


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




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



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



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.



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





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

Contact

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


© 2015 BearingPoint. All rights reserved

Matthias HoehnePartnerBearingPoint [email protected]

CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT<

www.bearingpoint.com

mailto:[email protected]

investment accounting in the cloud

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