You use this function in Account Management (FS-AM) to enter information about the insurance for a loan account and to assign insurance policies to an account. You can manage the master data for the insurance policies in a connected Collateral Management (FS-CMS) system. If the business partner is unable to repay her loan and any charges incurred, the bank can claim the coverage amount from the insurance policy assigned.
Within Account Management (FS-AM) the Insurance Handler component enables you to exchange data with the insurance company and Collateral Management (FS-CMS). The data exchange takes place in the system; Collateral Management (FS-CMS) can be installed in the same logical system or in a different logical system from Account Management (FS-AM).
The Insurance Handler generates conditions on the account for the generation of insurance premiums. It calls the payment items for insurance premiums on the account, which the bank can then disburse to the insurance tracking vendor or the insurance company.
The Insurance Handler retrieves the payment items or insurance premiums that the bank disburses to the insurance company.
If the master data for an insurance policy is changed in the account master data, in Collateral Management (FS-CMS), or at the insurance company, the relevant system forwards the changes to the Insurance Handler where they are reconciled.
You have made the settings in Customizing for Account Management (FS-AM) under Product Management ® Insurance in the following IMG activities:
● Define System Settings for Insurance
● Define Portfolio for Insurance
● Assign Condition Types to Insurance Types
● Assign Rebate Posting Types to Condition Types
Business Add Ins (BAdIs)
● BAdI: Calculation of Rebate Amount During Cancellation
● BAdI: Creation of List of Master Data Changes
...
● The master data of the insurance policies that are available for the insurance of accounts is managed in Collateral Management (FS-CMS). You can use the following reports in Account Management (FS-AM) under Account ® Loan (Special Functions) ® Insurance to call Collateral Management (FS-CMS).
○ Create Insurance Policy
○ Change Insurance Policy
○ Display Insurance Policy
You can assign the following types of insurance to a loan account as collateral in Account Management (FS-AM), for example.
○ Occupational disability insurance
○ Life insurance
○ Pension insurance
○ Residual debt insurance
○ Property insurance
The collateral available to you depends on the settings made in the IMG activity Define Insurance Types for Collateral Objects, in Customizing for Collateral Management (FS-CMS) under Object Management ® Basic Functions.
● You assign an insurance policy to an account in Account Management (FS-AM) in the account master data on the Insurance tab page.
● You can use the following reports in Account Management (FS-AM) under Periodic Tasks ® Insurance for the subsequent management of insurance policies.
○ Cancel Expired Insurance Policies
○ Compare Payment Plans for Insurance Policies
(The system creates the Application Log- Compare Payment Plans for Insurance Policies for this report. You can call the application log in the SAP Easy Access Menu, under Account Management (FS-AM) ® Logs.)
● The system executes these reports automatically during end-of-day processing.
● For more information, choose the icon in the initial screen for the relevant report.
● Account Management (FS-AM) informs the insurance company about all changes made to the account and the assigned insurance policies that are relevant for insurance.
The insurance company also informs Collateral Management (FS-CMS) about changes made to the insurance policies. (This activity is not connected to the system.)
● The bank can disburse the insurance premiums to the insurance tracking vendor or to the insurance company by creating a list of the insurance premiums required and the premiums already paid by the customer using the Pay Insurance Premiums report.
● An insurance company creates an insurance policy for the business partner that is the account holder, which is used as insurance for the loan account.
You receive the master data for the insurance policy from the insurance company and create the insurance policy in Collateral Management (FS-CMS).
● Assign one or more insurance policies to the account in the account master data on the Insurance tab page. For more information, see Editing Insurance.