Financial Management Blogs by SAP
Get financial management insights from blog posts by SAP experts. Find and share tips on how to increase efficiency, reduce risk, and optimize working capital.
Showing results for 
Search instead for 
Did you mean: 
Product and Topic Expert
Product and Topic Expert
Digitization transforming insurance business models and markets. The insurance industry is hoping that the leap into digital processes will provide new impetus for their business and ultimately lead to growth and increased sales.

Insurance companies with their large number of customers use efficient tools like SAP FS-CD Collections and Disbursements that help them automatically merge transactions and premium bookings, because the greater the volume of data, the greater the cost of analyzing it. Equally important is batch handling with FS-CD mass activities, a processing framework that makes it possible to collect premiums from many thousands of policyholders at the same time.

End consumers are used to being able to use convenient and secure payment methods such as credit cards or PayPal. SAP FS-CD in combination with SAP Digital Payments add-on allows insurers to activate and deactivate payment options swiftly and easily.

I see at least three touchpoints where insurance customers can benefit from the integration into SAP Digital Payments add-on.


  • Payment of the first premium (conclusion of the insurance contract)

  • Recurring payments for renewal premium

  • Payment Link in invoice / correspondence


Payment of the first premium (conclusion of the insurance contract)


Insurance companies can increase their conversion rates for suitable products by offering a tailored payment mix. For prospective customers who want to spontaneously buy policies for temporary situations, a SEPA transfer is comparatively inconvenient.


In an external application the first premium is calculated for a quotation and the consumer concluded the policy online with a payment initiation, e.g. ApplePay. The external application forwards the payment reference from SAP Digital Payments add-on via policy management system to payment plan interface, which posts the cleared first premium.


First premium via payment plan / Source: SAP Fioneer


Advice settlement provide information about the payment, charges, etc. and reconcile it, based on the given payment reference, with the cleared item.


Recurring payments for renewal premium


The renewal of policies is the core business of most insurers and leads to recurring payments. SEPA Direct Debits are the most common used payment scheme for recurring payments. Credit cards can also offer this service.


But insurers must be able to store the data PCI compliant in their own system? SAP Digital Payments add-on provide a tokenization approach and sensitive data is not stored in SAP system. FS-CD payment run could process credit cards payments in a data protection-compliant manner via PCI DSS certification in tokenized form.


Recurring payment of renewal premium / Source: SAP Fioneer


Payment Link in invoice / correspondence


This feature must be implemented custom specific for each correspondence, like insurance invoice or broker invoice. A specific URL / QR Code is requested and created from SAP Digital Payments. This QR Code must be printed on the correspondence (paper/email) and sent to the customer.

Payment per Link / QR-Code Source: SAP


The customer scans the Code und the Payment Page provided by Digital Payments is opening. The customer can use one of the offered digital payment types to pay the invoice. The payment will be executed and transferred via the digital advice to the financial system.


As we see, the combination of SAP FS-CD with SAP Digital Payment add-on supports the entire live cycle of an insurance policy. From new business to a payment of e.g., overdue premiums. What do you think about these use cases? Will they really help insurers strengthening their digital sales? Please share your feedback in the comments.


Please check also the Q&A section for FS-CD.