World’s Largest Reinsurer to Replace Numerous Legacy Systems with Reinsurance Capability of mySAP™ Insurance
MUNICH, Germany – February 25, 2003 – SAP AG (NYSE: SAP) today announced that the world’s leading reinsurer, Munich Reinsurance Co. (Munich Re), will implement the reinsurance capability of mySAP™ Insurance to handle its core business processes, replacing various legacy systems with a single comprehensive solution. The reinsurance capability of mySAP Insurance will streamline the processing of reinsurance business at Munich Re and reduce maintenance and development costs typically associated with maintaining disparate systems.
The reinsurance functionality of mySAP Insurance was developed with the assistance of Germany-based IT consulting and system integration company msg systems AG to help insurance and reinsurance companies integrate processes and remain competitive. In addition, the capability enables companies to comply with ever-changing legal requirements and carefully analyze the policies in which they participate in order to more effectively manage risk and protect themselves from potentially devastating financial effects. To calculate their exposure to loss, insurers and reinsurers need complete transparency throughout their portfolios. The reinsurance capability of mySAP Insurance offers this visibility, giving companies detailed evaluations of all reinsurance-related risks.
“Our clients value the security as well as the quality of reinsurance cover offered by Munich Re,” said Dr. Jörg Schneider, Member of the Board of Management at Munich Re. “The reinsurance management capabilities of mySAP Insurance will improve the information-gathering and analysis processes to expand the transparency we need to achieve risk-adequate conditions and prices. At the same time, we will also be able to offer our clients even faster service.”
Other advantages are an integrated adminstration system, a consistent system landscape for reinsurance and Group consolidation, and the technological security offered by the SAP system platform.
Reinsurance capability with mySAP Insurance will provide Munich Re with a powerful tool for efficiently managing portfolios while complying with such legal requirements as International Accounting Standards (IAS) and Generally Accepted Accounting Principles (US-GAAP). In combination with mySAP™ Financials and the collections and disbursements capabilities of mySAP Insurance, reinsurance capability covers nearly all reinsurance core processes, including management and accounting of single policies, facultative acceptances and proportional and non-proportional reinsurance contracts; administration and accounting of single and cumulative losses; and evaluation with statistics and individual queries and reports.
“Munich Re is the world’s leading reinsurer, and reinsurance capability with mySAP Insurance will enable the company to integrate and streamline its global processes, replacing a host of legacy systems with a state-of-the-art information technology platform,” said Dietmar Pfaehler, senior vice president, IBU Insurance, SAP AG. “mySAP Insurance and its reinsurance capability offer tried and tested report and analysis tools to ensure flexibility, transparency, and security in reinsurance core processes. This ready-made yet customizable single solution is another example of the industry-specific expertise SAP offers its customers from our more than 30 years of experience serving the world’s leading businesses.”
SAP will present its solutions together with its service, technology, and small and midsize business (SMB) partners at SAP’s main booth in hall 4 at CeBIT 2003, being held in Hanover, Germany, March 12-19.
About Munich Re
The Munich Re Group, whose business also includes primary insurance and asset management, has a preeminent position in the global reinsurance industry. It is headed by Munich Reinsurance Company of Munich, Germany, and includes reinsurance subsidiaries, branches, service companies and liaison offices in more than 60 locations worldwide, serving insurers in more than 150 countries.(Additional information at http://www.munichre.com.)
SAP is the world’s leading provider of business software solutions. Through the mySAP Business Suite, people in businesses around the globe are improving relationships with customers and partners, streamlining operations, and achieving significant efficiencies throughout their supply chains. Today, more than 19,300 companies in over 120 countries run more than 60,100 installations of SAP® software. With subsidiaries in over 50 countries, the company is listed on several exchanges including the Frankfurt stock exchange and NYSE under the symbol “SAP.” Additional information at http://www.sap.com.)