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Function documentationInsurance

 

You use this function in Account Management (FS-AM) to create information about information about a loan account and assign insurance contracts to the account. You manage the master data for the insurance contracts in the connected Collateral Management (FS-CMS) system. If the business partner cannot repay the loan and resulting charges, the bank can claim the coverage amount from the assigned insurance policy.

Integration

In Account Management (FS_AM), the Insurance Handler component enables data exchange with the insurance company and with Collateral Management (FS-CMS). Collateral Management(FS-CMS) can be in the same system or in a logical system like Account Management (FS-AM).

Insurance Handler generates account conditions for the collection of insurance premiums. It monitors the incoming payment items for insurance payments, which the bank can disburse to the insurance tracking vendor or insurance company.

If changes are made to the master data of an insurance in the account master data or in Collateral Management (FS-CMS) or at the insurance company, the relevant system forwards the changes to the Insurance Handler.

Prerequisites

You have made the settings in Customizing for Account Management (FS-AM) under Start of the navigation path Product Management —> Insurance End of the navigation path in the following Customizing activities:

  • Define System Settings for Insurance

  • Define Portfolio for Insurance

  • Assign Insurance Types to Condition Types

  • Assign Rebate Posting Types to Condition Types

Budiness Add-Ins (BAdIs):

  • BAdI: Calculation of Rebate Amount when Notice Given

  • BAdI: Generation List of of Master Data Changes

Features

  • Management of master data for insurance contracts, which should be available for account insurance, is executed in Collateral Management (FS-CMS). To call Collateral Management (FS-CMS), the following reports are available in Account Management (FS-AM) under Start of the navigation path Account —> Loans (Special Functions) –> Insurance End of the navigation path:

    • Create Insurance Contract

    • Change Insurance Contract

    • Display Insurance Contract

    The collateral that is made available depends on the settings in the Customizing activity Define Insurance Types for Asset Objects, which you find in Customizing for Collateral Management (FS-CMS) under Start of the navigation path Object Management —> Basic Functions End of the navigation path.

  • You make the Assignment of Insurance Contract to Account in Account Management (FS-AM) in the account master data on the Insurance tab page.

  • For further management of insurance contracts, the following reports are available in Account Management (FS-AM) under Start of the navigation path Periodic Tasks —> Insurance End of the navigation path:

    • Canceling Expired Insurance Policies

    • Compare Payment Plans for Insurance Contracts

      (For this report, the system creates the Application Log for Comparison of Payment Plans for Insurance Contracts, which you call on the SAP Easy Access screen under Start of the navigation path Account Management (FS-AM) Next navigation step Logs End of the navigation path.)

    • Disburse Insurance Premiums

      The system runs these reports automatically in end-of-day processing.

      For more information, see the initial screen of the reports under Program Documentation ( Program Documentation).

Activities

  • An insurance company creates an insurance contract for the business partner who is the account holder. The insurance is valid for the loan account.

    You receive the master data of the insurance contract from the insurance company and created the data in Collateral Management (FS-CMS).

  • You assign the insurance contract in the account master data on the Insurance tab page. For more information, see Editing Insurance..