Insurers are underperforming in claims management, according to software provider SAP.

SAP business development manager for financial services Lloyd O'Keefe said insurers have not yet "bit the bullet" with claims management.

"There are huge opportunities for insurers to do something about it, but margins are squeezed at the moment," he said.

This follows SAP's launch of Policy Management, which is being developed with Austrian insurer Wiener Stadtische.

"We are now looking at claims management," O'Keefe said.

"There are many costs still associated with this area and we can provide an end-to-end capability and deal with the entire life cycle of a claims process."

O'Keefe said SAP's advantage was that the system components could work in isolation and integrate into existing legacy systems.

He said AXA PPP already used SAP systems and was looking to buy more. PPP confirmed that the insurer was "considering the possibility of using further services from the company".

O'Keefe said SAP had invested heavily in the financial services market and is currently also developing a reinsurance solution "which has captured the imagination of the reinsurance marketplace including Munich Re," he said.