SAP CPQ for the Insurance Industry

SAP CPQ for the Insurance Industry

SAP CPQ for the Insurance Industry

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Author: Bill Thane

Configure, Price and Quote software (CPQ) is a versatile tool that can, and should, be used by a variety of industries. One industry that is not always considered is insurance. SAP CPQ is especially valuable for businesses with multiple stakeholders involved in the sales process, a complex approval and review processes, complex pricing decisions, or a lengthy and complex customer quote documentation. Here are some examples of how CPQ can improve sales processes for the insurance industry. 

Using CPQ to improve the group insurance quote process:


Today, the group insurance quoting process consists of mostly manual processes and disparate data sources to arrive at quotations. This can create lengthy quoting cycles and workload difficulties during peak periods, such as the end of the year.

At a high level, the steps are as follows: 
  1. The sales agent together with the broker gathers the census information including name, gender, date of birth, zip code and a coverage code. 
  2. Next, products for the plan and the type of plan must be determined
  3. Following this, networks must be chosen if there are employees in different states
  4. These benefits and options must then be assembled in a plan which is then sent to underwriting for pricing with often a series of approvals and collaborations between brokers and underwriters. 
  5. Once the pricing has been agreed upon, the plan is reviewed and finalized.
  6. The final step is to generate a quotation which can be quite complex and contain specific text blocks. 


How CPQ makes a difference 

CPQ in conjunction with the SAP Sales Cloud products, like CallidusCloud Insurance ICM and Agent Performance Management can simplify this process and allow insurers to be more efficient and effective in managing their group policy quoting processes. The following are some examples of how this solution can work: 

  • Census data can either be entered into CRM as a record, aggregated, and the data transferred to CPQ to use in the quoting process. An alternative is to use CPQ’s capabilities to create a page(s) during configuration to capture this data. 
  • Product selection can be done in SAP CPQ as well as selection of various plan information either using tables that are maintained in SAP CPQ or utilizing the robust capabilities of its web services to access data in external systems.
  • Network determination is again a configuration element that SAP CPQ can automate based on data in CPQ or accessed from other systems. 
  • Through SAP CPQ collaboration features, multiple users can access the data and quotations created in CPQ to eliminate the need for multiple emails and conversations while the quote is being priced and finely tuned. 
  • Underwriting and pricing approvals are easily automated using standard SAP CPQ processes
  • Complex quote creation, collaboration, and finalization utilize functional strengths common in CPQ applications. 
  • Additional functionality such as Contract Lifecycle Management and Electronic Signatures can also be integrated into SAP CPQ solutions to make the lead to quote process more efficient. 
  • As an added benefit, SAP Incentive and Commission Management for Insurance will ensure timely and accurate commissions for the insurer’s agent network. Canidium is highly experienced and recognized in both SAP Incentive and Commission Management (ICM) and SAP Configure Price and Quote (CPQ)
The Bottom Line

Insurance companies can combine the functionality offered by SAP Sales Cloud products to provide the advanced claims, policy, and billing management capabilities insurers need to improve efficiency, profitability, and customer loyalty. In addition, SAP CPQ is a proven technology that can be utilized by the group insurance industry in the ways outlined above. Not only can it improve the time it takes to create and present highly complex quotes, but it can significantly impact the time to process renewals and plan modifications. 

Canidium wants to help you and your business get the most out of CPQ, and our dedicated team of can consultants can help you determine if SAP CPQ is the right solution to your needs. Visit our blog for more information about CPQ software or reach out to our expert team by clicking the button below!

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