Future-Proofing FS-CD: Why Insurers Should Move from SAP ECC to S/4HANA Now (1 of 2)

Feb 22

TL:DR
The insurance industry is undergoing rapid change: digital payments, real-time data, and streamlined customer experiences are now the norm. Yet many insurers still run FS-CD on SAP ECC—missing out on modern functionalities that can drastically reduce costs and boost agility. In this article, we’ll uncover why staying put is riskier than you think and how S/4HANA changes the game. You’ll also see how a.s.r. Insurance leveraged S/4HANA to enhance data efficiency—providing a real-world success story for this transformation. If this blog triggers you, then:

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“Why Fix What Isn’t Broken?”

Over the last few years, I’ve worked with several insurers still running FS-CD on SAP ECC. Many of them recognize that the switch to S/4HANA is inevitable, but concerns over complexity, cost, and disruption keep them from taking the leap. This makes it hard for IT to formulate a business case for the transformation. I get it—migrating an enterprise system isn’t a small decision. Next to that, I like it when my insurer is risk averse; if any cooperation should be—it's insurers.

But here’s the harsh reality: sticking with ECC is costing you more than you think.

Some insurers ask, “If it still works, why change?” But staying on ECC means missing out on efficiency gains, automation, compliance improvements, and cost savings that competitors are already leveraging. The financial services industry is evolving fast, and clinging to outdated technology could put insurers at a serious disadvantage.

Game-Changing Functionalities & Capabilities in S/4HANA

The mentality: “It works just fine, why change?” is an understandable one, and while ECC may still be functioning, that doesn’t mean it’s performing at its best.

The reality? S/4HANA is not just an upgrade—it’s a transformation.
SAP and SAP Fioneer have spent years refining and optimizing FS-CD within the S/4HANA environment, introducing powerful new functionalities that significantly improve efficiency, automation, and user experience. If you're still on ECC, you’re missing out on tools that could drastically improve the way you handle collections and disbursements.

Let’s break down a few of the biggest game-changers:

Embedded Analytics & Real-Time Reporting

Gone are the days of batch processing and delayed financial insights. In S/4HANA, real-time embedded analytics provide insurers with instant visibility into collections, disbursements, and outstanding receivables.

Instead of waiting for an end-of-day report to assess cash flow, finance teams can access real-time dashboards that show collections performance, overdue accounts, and payment trends.
This allows insurers to react proactively rather than retroactively, improving cash flow management and reducing outstanding debts.

With these built-in analytics, finance teams can:

Track premium collections and claims payouts in real-time.
Monitor policyholder payment behaviors and detect issues early.
Optimize dunning strategies based on actual collection trends.

Faster Collections & Disbursements Processing

Another major improvement is speed.

S/4HANA enables instant payments and real-time fund transfers, significantly reducing Days Premium Outstanding (DPO) and improving customer satisfaction.
Unlike traditional batch processing, FS-CD integrates with SEPA Instant Credit Transfer (SCT Inst) and other real-time payment networks, allowing insurers to process 24/7 collections and immediate claims payouts.
The SAP Digital Payment Add-On enhances payment flexibility, enabling credit card transactions, digital wallets, and automated recurring payments with built-in fraud detection and tokenization for secure processing.

By embedding payment functionality into digital sales channels, insurers can streamline policy purchases, premium collections, and disbursements, reducing friction and improving customer retention.

Some key improvements include:

Real-time payment execution – FS-CD integrates directly with instant payment networks to enable immediate fund transfers, ensuring faster premium collections and near-instant claims payouts.
Automated payment orchestration – The system intelligently selects the most efficient payment route, reducing costs and optimizing processing time based on payment type and region.
Seamless integration with digital platforms – Payments are now embedded into digital policy purchases, self-service portals, and claims processes, allowing insurers to offer one-click transactions and real-time payment confirmations.

Seamless SAP Fiori Integration – A User Experience Overhaul

Let’s be honest—SAP ECC’s user interface feels outdated. It’s functional, but not intuitive.

S/4HANA brings in SAP Fiori, a modern, web-based UI that makes FS-CD far more accessible. No more navigating complex SAP GUI screens—Fiori offers a clean, responsive, and intuitive experience that even non-technical users can navigate effortlessly.

With SAP Fiori, users get:

Role-based dashboards that provide personalized insights—so collections agents, finance managers, and IT teams see what matters most to them.
Mobile and web access—finance teams can review payment statuses and approve transactions from anywhere..

Eliminating Technical Debt – Before It’s Too Late

For many insurers, FS-CD on ECC has been running for decades, accumulating layer upon layer of custom developments, outdated configurations, and workarounds. What started as necessary tweaks have now turned into bloated, inefficient, and costly technical debt.

The consequences?

Custom objects everywhere – Many of which were created to solve gaps that are now standard in S/4HANA, making them redundant.
Non-streamlined processes – Years of configuration changes have created complex, inefficient workflows that slow down operations.
Skyrocketing maintenance costs – Supporting an aging, customized system drains IT budgets and increases dependency on legacy knowledge.

Migrating to S/4HANA is an opportunity to reset—cleaning up technical debt, replacing custom code with standard functionalities, and adopting best practices to create a leaner, more agile system. Instead of carrying unnecessary baggage, insurers can finally optimize operations and future-proof their FS-CD landscape.

A Cloud-Ready Infrastructure

Let’s be honest—SAP ECC was never built for the cloud. Running it today often means high infrastructure costs, complex upgrades, and limited scalability. S/4HANA changes that, offering insurers cloud-based flexibility that adapts to modern business needs.

With Rise with SAP (Private Cloud), insurers get a fully managed environment where SAP handles updates, security, and infrastructure, ensuring a hassle-free experience.
For those needing more control, a Hybrid Model (Private + Public Cloud) allows insurers to keep core functions (SAP Fioneer’s Insurance modules) in a private cloud while leveraging public cloud (Core Finance capabilities) for scalability and cost efficiency.

Whether optimizing costs, enhancing performance, or ensuring business continuity, S/4HANA’s cloud options give insurers the flexibility to scale without the headaches of legacy systems.

Process Harmonization & Standardization

Running FS-CD on ECC for over a decade (or decades for some customers!) often means dealing with fragmented, inconsistent processes across different business entities, leading to higher operational costs, reporting challenges, and inefficient manual workarounds. Over time, these inconsistencies slow down agility and create bottlenecks that limit growth and innovation.

When moving to S/4HANA, insurers have several migration paths to choose from—whether Brownfield (system conversion), Greenfield (new implementation), or Bluefield (selective data transition). This transformation is more than just a technical upgrade; it’s an opportunity to unify processes across multiple regions, business lines, and product portfolios, ensuring consistent data, streamlined workflows, and better financial accuracy.

By adopting standardized processes, insurers can reduce operational overhead, improve reporting transparency, and enable faster decision-making. With a more unified and efficient system, insurers can eliminate legacy complexities, operate more effectively, and scale seamlessly across markets.

Real-World Examples

Pointing to real-world success stories helps readers see the tangible impact of migrating from SAP ECC to S/4HANA FS-CD. Even short case study summaries can illustrate the value of moving forward.

Real-World Example: a.s.r. Insurance’s S/4HANA Transformation
A prime example is a.s.r. Insurance, one of the larger insurers in the Netherlands. Facing a complex data landscape and an urgent need to improve operational efficiency, a.s.r. collaborated with Capgemini to migrate their legacy SAP environment to SAP S/4HANA.

Challenge: Disconnected systems and inefficient data processes led to slower decision-making and higher operational overhead.
Solution: By moving to S/4HANA, a.s.r. established a unified data infrastructure. This enabled real-time analytics, streamlined financial operations, and reduced reliance on manual interventions.
Outcome: a.s.r. achieved a significant boost in data efficiency—teams could quickly access accurate information, drive proactive insights, and ultimately offer better customer experiences. The migration also set a.s.r. up for scalable growth, allowing them to add new digital services without being bottlenecked by outdated ECC limitations.

Source by Capgemini: A.S.R. Insurance drives data efficiency with SAP S/4HANA

Conclusion: The Cost of Staying Behind vs. The Value of Moving Forward

For insurers still running FS-CD on SAP ECC, the reality is clear: change is coming, whether by choice or necessity. While staying on ECC may feel like the safe option, the long-term risks—rising operational costs, outdated processes, lack of automation, and increasing technical debt—far outweigh the short-term effort of migrating to S/4HANA.

S/4HANA is more than just an upgrade; it’s a strategic transformation that gives insurers access to real-time analytics, instant payments, a cloud-ready infrastructure, and process harmonization across all business units. It streamlines operations, enhances customer experiences, and future-proofs FS-CD for an evolving industry.

But how should insurers approach the migration?
The next step is choosing the right migration path—whether Brownfield, Greenfield, or Bluefield—and ensuring a smooth and strategic transition. In Part 2 of this series, we’ll break down:

The different migration paths to S/4HANA and how to select the best one for your organization.
Best practices for running a successful migration without business disruption.
Common challenges insurers face during the transition—and how to overcome them.

If you’re considering your move to S/4HANA, now is the time to start planning. Stay tuned for Part 2, where we’ll guide you through making the transition as seamless and effective as possible.

Ready to Modernize Your FS-CD? Let’s Talk

Are you unsure about the migration approach or timeline? Let’s discuss your unique challenges and goals—and map out a plan to make S/4HANA your growth catalyst.

Schedule a 30-Minute Discovery Call

Get a tailored assessment of your FS-CD landscape.
Explore the best migration path (Brownfield, Greenfield, or Bluefield).
Learn how to minimize disruptions and maximize ROI.

Contact me!

Email: Jordy@Bultman.consulting

Don’t let outdated technology hold you back. Modernize your FS-CD with S/4HANA and future-proof your insurance operations today!

Publicly Available Sources Used in This Article

The insights in this blog were derived from a mix of my own industry expertise and the following publicly available sources: