Insurance (Public Sector)

 

Customer

Our Customer is an insurance provider for public sector employees on a federal and a state level. Since the shift to new legislation allowing for supplementary insurance (January 2001) they offer - in addition to old age pensions, unemployment insurance and widows´and orphans´pensions - supplementary retirement provision products for communal employers, social security agencies and other employers. This makes our customer the largest provider of supplementary insurance for public sector employees in Germany, currently caring for around 4.4 million employees. Voluntary products are also on offer in addition to the standard compulsory insurance.

Due to rising costs it was decided to increase the transparency of the costs structure of the IT, as well as of the cost allocation across the individual departments and their respective performance.

To this end, the project to continually guide IT costs using SAS Activity-based Costing was initiated. Aurich and Partner AG was commissioned to conduct this project.

Project Setup

Six months and 100 consultation days were planned to conduct the necessary work, including setting up the required IT platform and knowledge transfer for employees. The project was successfully concluded within this framework. The logistics of cost allocation were developed on workshops in cooperation with IT experts. In the first version of the cost allocation model, existing tables containing data on consumption rates were integrated. An automatic integration using prior systems, such as SAP, is an optional possibility. Quality control of the source data was conducted using an algorithmic plausibility test. Missing data were completed retroactively or via import. In addition to IT data, special use was made of the project´s centralised chronology.

Modelling

During the first phase, resource costs were structured according to cost type and department: personnel costs, service costs and hardware and software costs. Subsequent phases saw these costs being distributed, according to cause, along the "technical strata". The distribution key was determined in a technical measurement of consumption, or from the configuration data. In an interim phase, ongoing projects were also taken into consideration.

Charging routes for import interfaces

Charging routes allowing for the periodical, automatic import of source data were programmed using SQL. This import data includes, in addition to transaction data, changes to the master data for all levels. This allows for a strict traceability.

OLAP Reporting

SAS ABM, fully automatically, generates an OLAP Cube and reports for evaluation for every model. As well as online analysis using OLAP, this also enables standard reports to be defined at will. This is a prerequisite for the transparency and traceability of an input-relevant distribution of IT costs. Using this system, the customer can now guide IT costs according to the new demands.