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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

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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

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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

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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.

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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

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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.

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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.

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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

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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

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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

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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

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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

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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

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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

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