Challenge
ERGO required a necessary cleanse, consolidation and migration of 180,000 data elements across real estate, insurance and mortgage – all without disruption to the business or usual processes.
Solution
SAP Fioneer Collateral Management enabled comprehensive and standardized database for ERGO simplifying even the most complex collateral constellations. Data analysis and reporting processes are also made more efficient complying with Basel II standards.
ERGO is one of the largest insurance groups in Germany and Europe. In 2022, ERGO received over 20 billion euros in total premiums and provided its customers with net insurance benefits totalling around 15 billion euros. ERGO is part of Munich Re, one of the world’s leading reinsurers and risk carriers.
Industry
Banking
Location
Switzerland
Number of employees
115,000
Setting the scene
SAP S/4 HANA transformations are truly major projects. And even if it doesn’t look like it at first glance, time is pressing: SAP only guarantees standard support for the predecessor solutions, such as SAP ECC, until the end of 2027.
The transformation is therefore inevitable, so the first preparatory measures should be tackled now at the latest. For example: the replacement of collateral management within Loan Management and the transfer of the data stock to Collateral Management. The migration of data is therefore an essential step towards S/4.
SAP Fioneer’s Collateral Management is a comprehensive solution for the management and monitoring of collateral used by financial service providers to secure loans – for example, real estate, goodwill or securities.
The clock is ticking
As one of the largest insurance groups in Germany and Europe, ERGO was also confronted with the impending migration: over 180,000 data elements had to be moved – without affecting ongoing processes, of course.
Close collaboration and well-considered steps
SAP Fioneer and ERGO worked together and in close coordination for a total of 16 months on the migration, which faced a number of challenges despite good preparation.
The complex legacy data in the areas of real estate, insurance and mortgages had to be automatically cleansed and consolidated. It also became apparent that a number of functional enhancements were necessary, such as adding additional master data fields for mortgages in Collateral Management.
The adjustments, which were provided either by BDT development (Business Data Toolset, the central control system for maintaining master data) or as customized SAP Fioneer development, were already used during the migration and are now also mapped in the standard functionality of Collateral Management. The same applies to processes that ensure that data provision from Collateral Management to the insurance reporting system (FS-SR) is error-free.
Thanks to the close collaboration between SAP Fioneer and the ERGO IT department, all challenges were successfully overcome: requirements were identified in fit-gap workshops, solution designs were developed and the system configuration for Collateral Management was carried out, while delivery objects were continuously harmonized in order to ultimately complete the migration efficiently.
A solid basis for the next steps
By switching mortgage collateral management to Collateral Management, ERGO now has access to a much more comprehensive and standardised data basis and will be able to manage both simple and complex collateral constellations in the rental housing, large-scale financing and standard business areas more effectively in future. The data for the respective entities can be managed by Collateral Management in SAP and third-party systems and retrieved for analysis and reporting purposes, for example to comply with reporting standards such as the Basel II regulations.
“We worked hand in hand and became a close-knit team over the course of the project, which was a key success factor,” comments Annemieke Runge, the main project manager at ITERGO”. “With the successful migration of collateral management to Collateral Management, ERGO is now ideally equipped for the upcoming S/4 transformation.”
“With the successful migration of Loan Management to Collateral Management, ERGO is now ideally equipped for the upcoming S/4 transformation.”
Annemieke Runge, Main Project Manager at ITERGO