I N S UR ANC E II

S e s s i o n - 11

Information Technology in Insurance:

The Need for IT Applications of IT in Functional Areas of Insurance Customer Knowledge Management E-insurance

Can you

believe
these statements!!!
There is a world market for may be five computers.
Tom Watson, IBM Chairman (1943)

640 kilobytes ought to be enough for anybody.

Bill Gates, Founder of Microsoft (1981) (Today 64 gigabytes is common in computers.)

Personal Computers will never be successful. They are for hobbyists who would ever want a personal computer at home.
A Common Perception in 1980s

Information technology and business

are becoming inextricably interwoven. I don't think anybody can talk meaningfully about one

without talking about the other.

Bill Gates

Information Technology

A technology that helps to produce, manipulate, store,

communicate, and/or disseminate information.

The study, design, development, implementation,

support or management of information systems.

In a wider sense, any technology controlled by a microprocessor or a computer chip.

Information is crucial.
Strategy has to be based on information about markets, customers, and non-customers; about technology in ones own industry and others; about worldwide finance; and about the changing world economy for that is where the result is.
Peter Drucker

Role of IT in Modern Business

Pervading virtually every aspect of modern business. Effective use can mean the difference between success and failure. Essential requirement for competitive advantage through efficient service at reduced cost.

Customized product development through utilization of vast available data.

Reduced intra-office communication and travel.

Using Technologies for Insurance

Database Management System

Creating, maintaining and using a database integrated collection of data records and files. Reviewing the database provides information about performance, lapsation, surrender and so on. Repository of an organization's electronically stored data, designed to facilitate reporting and analysis. Equipping the managers with information to take easy, prompt and informed decisions.

Database Warehouse

Decision Support System

IT Applications in Functional Areas

Marketing

Increasing consumer awareness through internet, Touch screen kiosks Information about products, prices (premium calculator) and comparative analysis Proposal data entry Preliminary scrutiny Online/spot policy issue

Underwriting

IT Applications in Functional Areas

continued

Customer Servicing

Easy procedures like online premium payments, payment through ATM/ Credit card Online policy status, Phone helpline, IVRS, Customer portals etc. Single window servicing (through networking), Complaints management/ grievance handling Prior intimation in case of maturity

Claims Management

Quick claim processing, Cashless service and so on

Payment through ECS

IT Applications in Functional Areas

continued

Finance

Internal management viz. accounting, treasury management and financial performance reporting

Resource mobilization, portfolio management and investment planning

Actuarial valuation Recruitment and selection online application Training

Human Resource Management

Performance appraisals

Customer Knowledge Management

CKM is understanding your customers, their needs, wants and aims Collection of information and viewpoints that an organisation has about its customer Essential if a business is to align its processes, products and services to build real customer relationships Many companies do have knowledge of their customers, but, frequently this is

in a fragmented form or incomplete, or difficult to share or analyze

Role of CKM is to capture and organise this data to allow it to be shared throughout the organisation

E-insurance

E-commerce in insurance industry Customers turning online for information, and even, purchase of insurance covers Improving customers service Reducing cycle time Cost-effective Expanded global customer base

Insurance quotes Product comparisons Insurance FAQs Buy LIC policies now Customers Portal Online Payment Download Claim forms Track Claim

Why
E-insurance

Provides a new gateway for business Facilitates additional market penetration Essential for gaining deeper insight into customer preferences Customized selling Capturing customer data Extending reach to younger generations

Limitations of

E-insurance

No regulation on the websites (like click2insure.in,

bimadeals.com and apnainsurance.com)

Accuracy of information remains a major concern

Best quotes in most cases are not put up Websites giving varied information Low penetration of internet users

At an evolving stage