Post on 06-Apr-2018
8/3/2019 INS II - Session 11
1/15
S e s s i o n - 11
Information Technology in Insurance:The Need for IT Applications of IT in Functional Areas of InsuranceCustomer Knowledge ManagementE-insurance
I N S U R A N C E
II
8/3/2019 INS II - Session 11
2/15
Can you
believe these statements!!!There is a world market formay 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
8/3/2019 INS II - Session 11
3/15
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
8/3/2019 INS II - Session 11
4/15
Information Technology
A technology that helps to produce, manipulate, store,communicate, and/or disseminate information.
T he study, design, development, implementation,support or management of information systems.
I n a wider sense, any technology controlled by a micro-processor or a computer chip.
8/3/2019 INS II - Session 11
5/15
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
8/3/2019 INS II - Session 11
6/15
Role of IT in Modern Business
Pervading virtually every aspect of modern business.
Effective use can mean the difference between successand failure.
Essential requirement for competitive advantage throughefficient service at reduced cost.
Customized product development through utilization of
vast available data.Reduced intra-office communication and travel.
8/3/2019 INS II - Session 11
7/15
Using Technologies for Insurance
Database Management SystemCreating, maintaining and using a database integratedcollection of data records and files.
Reviewing the database provides information aboutperformance, lapsation, surrender and so on.
Database WarehouseRepository of an organization's electronically stored data,
designed to facilitate reporting and analysis.Decision Support System
Equipping the managers with information to take easy,prompt and informed decisions.
8/3/2019 INS II - Session 11
8/15
IT Applications in Functional Areas
MarketingIncreasing consumer awareness through internet, Touchscreen kiosks
Information about products, prices (premium calculator) and
comparative analysisUnderwriting
Proposal data entry
Preliminary scrutiny
Online/spot policy issue
8/3/2019 INS II - Session 11
9/15
IT Applications in Functional Areascontinued
Customer ServicingEasy procedures like online premium payments, paymentthrough ATM/ Credit card
Online policy status, Phone helpline, IVRS, Customer portals
etc.Single window servicing (through networking), Complaintsmanagement/ grievance handling
Claims Management
Prior intimation in case of maturityQuick claim processing, Cashless service and so on
Payment through ECS
8/3/2019 INS II - Session 11
10/15
IT Applications in Functional Areascontinued
FinanceInternal management viz. accounting, treasurymanagement and financial performance reporting
Resource mobilization, portfolio management andinvestment planningActuarial valuation
Human Resource Management
Recruitment and selection online applicationTraining
Performance appraisals
8/3/2019 INS II - Session 11
11/15
Customer Knowledge Management
CKM is understanding your customers, their needs,wants and aimsCollection of information and viewpoints that anorganisation has about its customer
Essential if a business is to align its processes, productsand services to build real customer relationshipsMany companies do have knowledge of their customers,but, frequently this is
in a fragmented form or incomplete, ordifficult to share or analyze
Role of CKM is to capture and organise this data to allowit to be shared throughout the organisation
8/3/2019 INS II - Session 11
12/15
E-insurance
E-commerce in insuranceindustryCustomers turning online for
information, and even,purchase of insurance coversImproving customers service Reducing cycle time
Cost-effectiveExpanded global customerbase
Insurance quotes
Product comparisonsInsurance FAQs
Buy LIC policies nowCustomers PortalOnline Payment
Download Claim formsTrack Claim
8/3/2019 INS II - Session 11
13/15
WhyE-insurance
Provides a new gateway for business
Facilitates additional market penetration
Essential for gaining deeper insight intocustomer preferences
Customized selling
Capturing customer dataExtending reach to younger generations
8/3/2019 INS II - Session 11
14/15
Limitations of E-insurance
No regulation on the websites (like click2insure.in,bimadeals.com and apnainsurance.com)
Accuracy of information remains a majorconcern
Best quotes in most cases are not put up
Websites giving varied information
Low penetration of internet users
At an evolving stage
8/3/2019 INS II - Session 11
15/15
?