CHAPTER 1- INTRODUCTION OF INSURANCE

1.1: MEANING OF INSURANCE

Insurance provides financial protection against a loss arising out of happening of an uncertain event. A person can avail this protection by paying premium to an insurance company.

A pool is created through contributions made by persons seeking to protect themselves from common risk. Premium is collected by insurance companies which also act as trustee to the pool. Any loss to the insured in case of happening of an uncertain event is paid out of this pool.

Insurance works on the basic principle of risk-sharing. A great advantage of insurance is that it spreads the risk of a few people over a large group of people exposed to risk of similar type. DEFINITIONS

Insurance is a cooperative form of distributing a certain risk over a group of persons who are exposed to it. Ghosh and Agarwal

Insurance is a contract in which a sum of money is paid to the assured as consideration of insurers incurring the risk of paying a large sum upon a given contingency. Justice Tindall

Insurance has been defined as a plan by which large numbers of people associate themselves, to shoulders of all, risks attach to individuals. Magee D.H. CHARACTERISTICS OF INSURANCE

It is a contract for compensating losses. Premium is charged for Insurance Contract. The payment of Insured as per terms of agreement in the event of loss. It is a contract of good faith. It is a contract for mutual benefit. It is a future contract for compensating losses. It is an instrument of distributing the loss of few among many. The occurrence of the loss must be accidental. Insurance must be consistent with public policy. 1.2: INFORMATION TECHNOLOGY

MEANING

Information technology (IT) is the application of computers and telecommunications equipment to store, retrieve, transmit and manipulate data, often in the context of a business or other enterprise. The term is commonly used as a synonym for computers and computer networks, but it also encompasses other information distribution technologies such as television and telephones. Several industries are associated with information technology, such as computer hardware, software, electronics, semiconductors, interne, telecom equipment, e-commerce and computer services.

In a business context, the Information Technology Association of America has defined information technology as "the study, design, development, application, implementation, support or management of computer-based information systems". The responsibilities of those working in the field include network administration, software development and installation, and the planning and management of an organization's technology life cycle, by which hardware and software is maintained, upgraded and replaced.

Humans have been storing, retrieving, manipulating and communicating information since the Sumerians in Mesopotamia developed writing in about 3000 BC, but the term information technology in its modern sense first appeared in a 1958 article published in the Harvard Business Review; authors Harold J. Leavitt and Thomas L. Whistler commented that "the new technology does not yet have a single established name. We shall call it information technology (IT). 1.3 HOW INSURANCE WORKS?

The concept behind insurance is that a group of people exposed to similar risk come together and make contributions towards formation of a pool of funds. In case a person actually suffers a loss on account of such risk, he is compensated out of the same pool of funds. Contribution to the pool is made by a group of people sharing common risks and collected by the insurance companies in the form of premiums.

Stands for "Information Technology," and is pronounced "I.T." It refers to anything related to computing technology, such as networking, hardware, software, the Internet, or the people that work with these technologies. Many companies now have IT departments for managing the computers, networks, and other technical areas of their businesses. IT jobs include computer programming, network administration, computer engineering, Web development, technical support, and many other related occupations. Since we live in the "information age," information technology has become a part of our everyday lives. That means the term "IT," already highly overused, is here to stay. (4)1.4: History of computer technology

Devices have been used to aid computation for thousands of years, probably initially in the form of a tally stick. The Anti kythera mechanism, dating from about the beginning of the first century BC, is generally considered to be the earliest known mechanical analog computer; it is also the earliest known geared mechanism. Comparable geared devices did not emerge in Europe until the 16th century, and it was not until 1645 that the first mechanical calculator capable of performing the four basic arithmetical operations was developed.

Electronic computers, using either relays or valves, began to appear in the early 1940s. The electromechanical Zuse Z3, completed in 1941, was the world's first programmable computer, and by modern standards one of the first machines that could be considered a complete computing machine. Colossus, developed during the Second World War to decrypt German messages was the first electronic digital computer. Although it was programmable, it was not general-purpose, being designed to perform only a single task. It also lacked the ability to store its program in memory; programming was carried out using plugs and switches to alter the internal wiring. The first recognizably modern electronic digital stored-program computer was the Manchester Small-Scale Experimental Machine (SSEM), which ran its first program on 21 June 1948.

The development of transistors in the late 1940s at Bell Laboratories allowed a new generation of computers to be designed with greatly reduced power consumption. The first commercially available stored-program computer, the Ferranti Mark I, contained 4050 valves and had a power consumption of 25 kilowatts. By comparison the first transistorized computer, developed at the University of Manchester and operational by November 1953, consumed only 150 watts in its final version. Chapter 2

ROLE OF INFORMATION TECHNOLOGY IN INSURANCE INDUSTRY

The insurance industry in India has gone through thrown a revolutionary change after this sector was open to the private sector in 1999 which brought professional expertise and management skills to procure insurance business. Again, since liberalization and globalization many foreign insurance companies have started operations in India after entering into joint veture with Indian companies. Insurers are beginning to feel the heat of the competition already and every company including the monolith--the Life Insurance co-operation, has had to sit up and think hard on strategies to take the competition head on.

Among all, one factor that has brought sweeping change in the industry in the manner it will work henceforth is information technology. It is perhaps the most significant development in the insurance sector today. Companies are redefining the way business was conducted so far- Traditional methods will have to be done away with and absorption of newer technologies will pave the way for improved efficiency and reduce costs. More transparency in operations and flexibility to change according to innovations in technology are the key factor for success in this industry.The role played by the information technology can be best explained in the following manner:- Easier Information Accessibility:

The Internet has ushered in a new wave of information accessibility. And hence. The internet medium has gained incredible importance. Almost every insurer worth his salt has made his presence on the internet. Moreover, it has eased the time-consuming procedure of information sourcing. Other than providing information on policies the internet has also enabled making premium payment and selling insurance products online. The development of e-commerce and m-commerce has emerged as advanced distribution channels virtually turning companies into paperless organizations.

Electronic Data:

Knowledge management, that was unheard of before, has today converted loads of tiles that were a massive source of raw data into electronic form. This database can help segregate information on the basis of buying habits, age group, and purchasing power of a vast majority, proving to be a mass source of available information for determining the investment culture of individuals. Such information can help devise specific tailor made insurance products too. Today information is made available at your fingertips. Files have given way to monitors and mousse and all one needs to do is punch a few keys and voila every piece of information you need is right before you

Comparison Shopping:

Earlier the insurance agent in Is inimitable style mobilized a few benefits of policies and most often the prospective customer ended up buying the policy the agent recommended. Today the customer can choose between the range of insurance product of various companies, suitable to his lifestyles and needs. He is in a position to compare between the policies of various companies analyze, work out calculations, demand more information than whatever he has been provided with and the insurance companies will only be glad to serve him. Improved service, innovative customer friendly products, affordable covers, reduction in premium, improved quality were unimaginable a few years ago. Sites such as www.policybazaar.com provide online comparisons between various insurance policies of different insurers, and helps in providing the best quotes for premiums to be paid.

Advanced Technology:

From the customers perspective, all this and more would be possible from the comforts of his home, resulting in saving of valuable time, elimination of middlemen and in the process establishing direct contact with the insurer. Apart from the internet, web chat, wireless, voice response unit and even intelligent character recognition technologies are expected to come in soon.

Newer Channels of Distribution:

In the current scenario the insurance distribution channels have gone through a sea change. Retailing of insurance products-a concept never heard before, has come into existence. Intermediaries such as brokers, bancassurance, and corporate agents will play a major role in distribution. And an Insurance agent is no more the 'sole information disseminating authority' today unlike yesteryears, thanks to technology.

Importance of the Net:

Of late there has been a steady increase in the number of internet users and the net has come up to be a dynamic marketing medium. Realizing the enormous potential cyberspace marketing holds , companies now devise advertising budgets accordingly. Times are changing and insurance agents and development officers (sales managers) have become computer survey. Packaged Software Solutions:

Packaged software solutions for insurance agents and development officers have become a run-away success. Premium calculations, future projections, proposals etc. for clients need not be a hard work anymore. Packaged software products are extensively used for presentations, proposal follow ups, policy services, client services, commission tracking, underwriting, task management etc. Technology in Rural Areas:

Technology needs to penetrate the rural areas too for it to be successful. Though an effort in this regard has already begun, insurers in order to make inroads in the rural areas need to bring about awareness among the masses by educating the rural folk on the benefits and necessity of insurance. It may take some time to educate the rural folk and also bring about a change in the traditional mindset. With innovative technology every communication whatsoever the customer has with the insurance company would be through the interne soon. The advent of digital signature would be one step ahead-to happen shortly. All this has changed the very profile of the customer. And enabling such efficiency is what insurance companies need to get set for. In the face of accelerating changes, insurance companies need to rework their strategies, do a rethink on core competencies, customer relationship management, facilitate distribution channels, settling claims, provide value additions etc. In this era only those companies, which keep abreast of the changing technology and utilize them to the maximum extent possible will survive and succeed.

2.1: TECHNOLOGY IN INSURANCE

Technology in insurance has changed the way the entire industry operates today. No longer do the load of the paper works and manual labor hamper the process or leave scope for errors. As the awareness and demand for various insurance have raised so have the complexities of the business itself. Now there are policies for personal as well as professional safety, for life, non life health to a wide range of product insurance. On top of all this there has been globalization. Leading insurance brands have all gone global with their operations trading across countries and across the different strata of societies and this is where insurance software systems have come in to streamline the volume of work and deliver quality services.

The introduction of technology in insurance has been a boon to the industry and clients alike. While companies can better manage their data, agents can perform better services and the end customers can expect better coverage as well as faster claims processes. From the timing of the application to the final claims every segment has now gone digital with electronic paperwork reducing the scope for delays and errors. Specific software like the insurance billing software, automated underwritings systems and claims management software take care of the individual aspect of the business. Applications are reviewed faster, payment records are instantly updated, automated reminders helps keep clients informed about their upcoming premiums seamlessly. All information is constantly updated and stored in a master database for all departments to refer to whenever needed.

Technology in insurance has also made the insurance industry go green. It has drastically cut down the amount of precious paper that would be otherwise used to manage and store all the data. With the insurance software systems and their multifarious applications, minimal documentation is now done in hard copies making them environment friendly solutions. And lesser documentation means that there is less manual labor involved. This has two fold benefits. Now there is less chances of errors in the data processing and services, and at the same manual labor which is expensive can be utilized in other more important areas of customer support and service. CHAPTER: 3 THE USES OF COMPUTERS IN INSURANCE Record-Keeping

Computers provide insurance agents and their staff members with a convenient way to store customer records. Their ability to encrypt data and store it in a database lets the companies keep client records strictly confidential. The days of needing stacks of file cabinets for storing information have long since passed. Computers save space and also make data available to agents and underwriters with the touch of a button.

Providing Quotes

Because of the instantaneous speed at which computers provide information to the insurance agent, agents can provide quotes for various products to clients or potential clients upon request. Computer programs used by insurance companies provide potential clients with instant information regarding what kind of policy the client is purchasing and how much the policy will cost. Because of the needs of clients to often meet with agents at times convenient for the client's schedule, insurance agents may utilize laptop computers to access client information, print off paperwork and provide instant quotes.

Assessing Risk

The insurance industry relies heavily upon actuarial science in order to assess risk that clients or potential clients may present to the company. Insurance companies use computers to conduct. Extensive research to produce computer programs that assess risk automatically. These dynamic Computer programs take into account various risks that a potential client may cause for the insurance company. The insurance company provides clients with quotes for policies based on this risk assessment.

Underwriting

Insurance underwriting also depends heavily upon computers in order to create efficiency within the industry. Even though a client my receive a quote from an agent, written policies go through underwriting process whereby a professional underwriter determines whether or not the policy can be written based upon risk assessment. Underwriting often proves to be the most important with life and health insurance policies. Computers help automate this process--using complex databases and formulas--so that underwriters need not engage in guesswork or make value judgments on their own.

Social Networking

Social networks and media strategies are used at key points in the value chain Social networking sites and technologies have enjoyed significant growth in recent years, attracting more people across a wide range of interests. Facebook has more than 500 million users and its 30-and-older demographic is growing at double-digits. Twitter has six million active users, while Flickr hosts more than five billion photos. People of all ages, ethnicities, income levels and political views use social networks.

Such sites have changed consumer expectations, as people now generally expect the organizations with which they do business to interact onlineanswering questions, solving problems, and providing feedback on products and services. It also illustrates the potential impact of social networking on the major areas of the insurance industry value chain: product development, marketing and communications, sales, underwriting, customer support and claims.

Some in the insurance industry are moving to the next step in social media engaging their followers in "challenges." Much like Frito-Lay uses Facebook and YouTube every year to challenge users to create a new Doritos commercial to air during the Super Bowl, insurer Aflac's "10-Second Challenge" commercial competition generated more than 180 video submissions, which were watched more than 250,000 times on Facebook and on aflac.com.CHAPTER: 4 ROLE OF INTERNET IN INSURANCE DISTRIBUTION

The internet: emerging channel for insurance distribution. The developments in Information Technology (IT) are working wonders in all fields of activity. It has become possible to send and receive information almost instantaneously. If circulars do not reach the agents on time or doubts are not cleared quickly, or the agent does not have details of new plans announced in the press, the agent may have faced awkward situations with the prospects. These problems can be totally avoided with the use of IT. Insurers traditionally, have been quick to adapt latest advances in technology. This is happening in the areas of IT as well. The extent of IT application will vary from insurer to insurer.

The Internet is a global system of interconnected computer networks that use the standardized Internet Protocol Suite (TCP/IP). It is a network of networks that consists of millions of private and public academic, business, and government networks of local to global scope that are linked by copper wires, fiber-optic cables, wireless connections, and other technologies.

The Internet carries a vast array of information resources and services, most notably, the inter-linked hypertext documents of the World Wide Web (WWW) and the infrastructure to support electronic mail, in addition to popular services such as online chat, file transfer and file sharing, online gaming, and Voice over Internet Protocol (VoIP) person-to-person communication via voice and video. The internet is thus a worldwide system, accessible through computers. Information travels through the internet at incredible speeds. It cuts across national and international boundaries. Information posted on a `website' is available to anybody from anywhere in the globe, free of cost, unless the access is protected.

While the internet allows access to anybody from anywhere, the Intranet is an in-house network, working on the same principle. The difference is similar to that between a national newspaper and in-house news-magazine, which is for private circulation. If an insurer has an intranet system, the information in the Intranet will be available only to its offices and personnel.

All the information is channeled to a central server usually located at the head office and they are transferred to respective computer terminals all inter- connected through wide area network(WAN). The internal information is available to the employees through the computers connected through local area network (LAN).The policyholders will not be able to access the data in the Intranet. Circulars meant for internal circulation can be posted on the Intranet, and everyone will have immediate access to it, whatever be the distance where the person is located.

In the Intranet also, it is possible to restrict some information to certain categories of persons, who will be identified through passwords. The interne is the medium that is the most democratic, since it is available to all, and displays no discrimination. One can send and receive mails, called as e-mails, through unique "user id" which is his address in the worldwide net and a unique password too that needs to remain confidential. One can search through search engines such as Google, yahoo, and Microsoft, and retrieve and download data, files, images; play games, join social networking sites, find professional jobs, post messages through blogs, have a corporate identity through websites, send mass business mailers, join chat rooms and discuss ideas; make friends, get married through online marriage websites; communicate with friends through social networking sites such as Orkut, Facebook, MySpace, Tweeter and many others; read online newspapers from any part of the globe, watch videos, connect with family and friends through a web camera connected to a computer while sitting across the continent, buy and sell online (e-commerce)etc.

Thus, in terms of benefits to the insurance field; the agent can sit in his office and sent relevant information, product brochures, and sales illustration to the prospective client; and clarify queries on the phone. Even policy application forms are available to the client through free downloads from the company's official website. It means savings of time and money for the agent or other distributors.4.1: COMMITMMENTARIES RELATED TO "THE INTERNET"

As the technology and culture of the Internet has matured over the years, so too has the insurance industry's use of this pervasive medium. The Internet was first viewed by insurers as a technology toy of which information technology (IT) departments might soon grow tired. In the U.S, by the mid 1990s, carriers realized the need to at least leverage the advertising, marketing, and information posting potential of the technology. And while the industry was being lambasted by various media pundits at the height of the "e-bubble" in 2001, the eventual wisdom of their pragmatic approach to this technology was actively viewed as naivet by some and as borderline stupidity by others. Integrating a paradigm shift In retrospect, the insurance industry's use of the Internet followed a respectable curve considering the risk averse nature of the business. The adoption rate and acceptance of this paradigm shifting technology came from deep knowledge of the complexity of insurance itself. IT managers and executives could not simply pursue the possibilities of Internet technology and ignore the practical realities of their business processes. The external voices calling for accelerated adoption and the "end of insurance as we know it" were in most cases unaware of all but the most visible aspects of the process.

The efforts of technology insurance buying and renewal decisions as consumers and businesses are pressed to "do more with less, "which, as often as not, has to do with time constraints in addition to money.

The use of intranets that make use of Web services for internal workflows can provide the flexibility that successful insurers will need to compete in the near future. Core systems need to be re-engineered to expose their functionality and processing as services to be called when needed by operations, customer facing applications, or analytic functions.

The most discussed and anticipated channel is the Internet-led channel. The widespread diffusion of the Internet has created an explosion in the growth of electronic channels, including direct channels (that is, individual company web sites), electronic markets, or "electronic intermediaries over which multiple buyers and sellers do business", and other cyber mediaries. CHAPTER: 5 INSURANCE SOFTWARE

The online Insurance Management System Software solution is a fully automated and integrated policy processing system for both personal and commercial insurance carriers. It is a scalable, reliable, and cost-effective solution for carrying out all business-critical insurance processing functions

Insurance Software Solutions provider for all segments of the insurance community and insurance product management. The web based Insurance Management System Software solution helps to solve long-standing time-to-market challenges. The web based insurance management system expertise and solution can dramatically lessen the cost of policy ownership services. 5.1: DIFFERENT TYPES OF INSURANCE SOFTWARE

Insurance Policy Administration System Insurance policy administration system consists of a mathematical notation that captures the relationship between policies and objects and the entities that manage policies for those objects.

The Insurance administration system is consisting of a number of policy administration The Insurance policy domains. The domains are arranged in a hierarchy, representing descending levels of authority. Claims Management Systems

This system ensures claims are processed fast and efficiently. Operator flexibility is the key, and we aim to improve operator productivity while processing claims.

Real-time status for quick resubmission and faster reimbursements. Unique claim aging tool shows thousands of claims status in one view. Insurance Claims System uses electronic filing system to primary and secondary payers. Each claim is scrubbed with up-to- date Medicare rules. This Claim Processing System helps in quick resubmission for claim

Insurance Agency Management System

Insurance Agency Management System facilitates an insurance company's ability to address relationships with its product distribution channels. This system helps in managing current Agencies, can add New Agencies or Delete Current Agencies. Insurance Agency Management System is the solution that delivers to manage and grow your insurance agency to assist day-to-day management of your agency. Agency management utilized for small business, individual or enterprise business. Insurance Agent Management System

Insurance Agent Management System maintains Multiple Agents from Multiple Agencies, keep the track of their activities from Policy Registration to Claim processing. All their data, their commission, their policies status updates, etc. are taken care by this module. This Insurance system helps in smooth functioning of the Agents working and makes the processes faster and efficient.

Policy Management System

Policy registration is intended to be a vehicle for the exploration and discussion of policy issues and is aimed in particular at enhancing communication between health policy researchers, legislators, decision-makers, and professionals concerned with developing, implementing, and analyzing health policy. Policy renewals and policy cancellation can be managed by the insurance policy management system

User Management System

A new user registers by filling in a form on your web-site. If necessary, the new user is first place in a waiting list until you approve the new user. After adding the user, the user can login to the system with his or her username and password to make changes. You can use overviews of users for mailing purposes etc..

User Management System manages all the users of the system i.e. Customer, Administrator or Agents. It keeps the track of thee the activities they performs, their data, their access information, etc.

Online Data Back-up System

Online Back-up System is used to have the backed off the data on another server so that in case Original Data get Damage, Lost, etc. then the data is available for work.

This system helps in the Real Time Data Backup and maintains the data for the future purpose. It also facilities the data back-up at other Geographical location.

The benefit of Online Insurance Management System

Online Back-up System is used to have the backed off the data on another server so that in case Original Data get Damage, Lost, etc. then the data is available for work. This system helps in the Real Time Data Backup and maintains the data for the future purpose. It also facilities the data back-up at other Geographical location

The benefit of Online Insurance Management System

Radix is the right technology choice for the vast majority of insurance-selling organizations on line. We have been closely associated with leading insurance players. Radix is essential for successfully managing and growing your business. Our web based insurance management system can manage your insurance business perfectly.

The following are five technical considerations that affect the usage of Internet:

Bandwidth: The rate measured in bits per second, at which information is transferred through a network Latency: The time required to transmit data across a network Availability: The continuous accessibility of the network, the applications of which it is composed, and the services it offers.Security: It is the most important technical consideration in the adoption of web-based and other e-commerce applications by the insurance industry. The sensitive aspect of security in e-commerce concerns privacy, or in other words; the confidentiality and authorized use of personal data, more pronounced in health insurance.

CHAPTER: 6 ONLINE INSURANCE

Online insurance refers to the buying and selling of insurance policy online. Insurance is subject to the principle of utmost good faith, which makes it convenient for people to conduct the business online, as both the parties have absolute duties to disclose all material facts otherwise any contract concluded is void.

Conducting a complete insurance transaction can be difficult due to the necessity of underwriting, sales, and a whole network of employees to ensure the contract is up to company standards. For this reason, many types of personal insurance are now sold online, including car insurance, travel insurance, and medical insurance.

In recent times, many online insurance providers now provide not only an insurance quote online, but perform the remainder of the selling process manually, and takes a large amount of paperwork out of the process. Sonic international insurance companies still require an actual physical process to take place.

6.1: CYBER FRAUD

Insurance fraud is nothing new, but the Internet provides dishonest people with more opportunities to commit online fraud. The Internet allows people to remain anonymous and open or close stores in a couple of minutes. Here are some common cyber fraud schemes to look out for:

Copycat websites with company logos.

The fake website promises a consumer insurance coverage from what appears to be a reputable insurance company. The consumer later learns the real company never received the application or payment.

Agents stealing premiums.

Premium theft happens when an agent who advertises on the Internet provides a fake policy or proof of insurance card and keeps an annuity or insurance payment. sale of fake insurance.

These sales happen when a website offers insurance at a low rate, but you later learn that the insurance company is fake and the policy is worthless. Multi-level marketing or pyramid schemes.

These schemes begin with an email or Internet website that offers something of value such as an insurance policy if you pay a membership fee. New members are told they can sell memberships or borrow money against their insurance policies and use that money to get credit cards and certificates of deposit. Members aren't told they can only borrow against a policy's cash value, which is usually zero in the first year.

Unlicensed Insurance

The most common type of cyber fraud is selling insurance without a state license. If a company is not licensed by TDI, it may not pay your claims and you could lose your premium payments. Call TDI's Consumer Help Line to check a company's or agent's license status.

Notify TDI if somebody tells you an insurance product isn't insurance and is exempt from state regulations, or if they tell you they don't need a license to sell a particular type of insurance. This is a common insurance fraud pitch. If you suspect insurance fraud, call TDI's Consumer Help Line at 1-800-252-3439.

Privacy Concerns

The Internet provides access to information, products, and services, but it also allows companies to collect personal information about you that can be shared with others. Safeguard your privacy online by following these tips:

Think before you give out personal information.

Keep your address, telephone number, Social Security number, email address, credit card number, and medical information private unless you know who is asking for the information, why they're asking for it, how it will be used, and how giving it to them benefits you. Look for an online privacy policy.

Many companies post privacy policies on their websites, including how any information you give them will be used and protected If you can't find a policy, send an email to the webmaster or website asking for the company s policy on privacy and information security. Don't allow companies to share your personal information.

Many companies ask whether-they can share your personal information with other companies. Security on the Internet

The Internet is enticing because it's always open for business. Make sure your online transactions are secure by taking the following precautions:

Use the current version of your browser and set your security preferences:

Secure browsers can encrypt your credit card numbers and personal information, confirm the identity of websites, and notify you if a website looks suspicious. Before you enter your credit card number or personal information:

make sure the website address begins with http:// and there is a key or lock security symbol on the bottom corner of the browser. Don't enter any information if you're unsure:

II' your browser isn't secure or you don't want to give information over the Internet, call the company or agent and ask if you can give it to them over the phone or by fax or regular mail. Keep passwords private:

Use a combination of numbers, letters, and symbols. Don't use any part of your telephone number, birth date, Social Security number, or address. Keep records: Print out copies of orders or any forms you fill out online. Pay with a debit or credit card:

In most cases, you will only be responsible lin paying the first $50 in unauthorized charges on your card. Do business with companies you know:

Anyone can set up an electronic storefront on the Internet. If you're not familiar with the agent or company, ask for more information or reference.

6.2 Phone Insurance

Can't live without your cell phone ? Get Phone Insurance so you don't have to. Here are UMW reasons to choose Phone Insurance:

Without insurance, you may he required to pay full price for a new phone if a replacement was needed. Insuring your phone provides you peace of mind by protecting your investment in the event of loss, theft, accidental damage, and out- of-warranty mechanical or electrical breakdown

It's easy and convenient. You can typically receive a replacement phone within the next business day, once your claim is approved.

How does it work?

Simply enroll in Phone Insurance when activating your new phone or in My Account within 30 days of purchasing your new Boost Mobile(P, phone with an accompanying Monthly Unlimited plan. The monthly cost is per enrolled phone.

Once enrolled, you are eligible for 2 approved claims within a 12-month period beginning on the date of the first replacement. There is a per claim limit of S1.000. Once your claim is approved, you will pay a nonrefundable deductible of S25, S65, or 5100 based on your plan. You may cancel your coverage at any time and receive a prorated refund or credit, if any, of your unearned premium within 15 days in accordance with the terms of your contract or applicable law. Chapter:7 Information Technology Introduce in LIC

LIC has been one of the pioneering organizations in India who introduced the leverage of. Information Technology in servicing and in their business. Data pertaining to almost 10 errors policies is being held on computers in L1C. We have gone in for relev ant and appropriate technology over the years.

1964 saw the introduction of computers in L1C. Unit Record Machines introduced in late 1050's were phased out in 1980's and replaced by Microprocessors based computers in Branch and Divisional Offices for Back Office Computerization. Standardization of Hardware and Software Commenced in 1990's. Standard Computer Packages were developed and implemented for Ordinary and Salary Savings Scheme (SSS) Policies. Chapter 8 technology trend in insurance marketComputerization:

Initially, in the late 1950's the insurance companies used Unit Record Machines (Electro Magnetic Machines) to process data punched into cards. Computers were introduces in the mid 1960's and by the 1980's the Unit Phased Machines were phased out and the entire process was computerized. This brought about greater efficiency and quick service delivery.

Internet:

Today, the internet has completely changed the service delivery process. Internet is today used to even sell insurance policies. Internet is, in fact, proving to be one of the widely used distribution networks for selling insurance policies. Also Internet is used for sending premium notices to policy holders through e-mails.

Companies like LIC (www.licindia.com), ICICI (www.iciciprduential.com) all have websites from which people can get the information about their product, price, various schemes, lots of information. People can also purchase the products through this websites.

Call Centers and SMS services:

Almost all the insurance companies have their own call centre t., which cater 4, queries of the policyholders. This service is 2.4x7 and they have the hot-move Petivn, (IVR) systems at all the branches.Electronic Clearance Service (ECS)

Almost all the big organizations today provide the ECS facility to its customers. A policy holder having an account in any bank which is a member of the local clearing house can opt for ECS debit to pay premiums. The advantage here is that once the option is exercised, the policy holder need not visit a branch for paying the premium or collecting the receipts. On the day indicated by the policy holder, the premium amount will be directly debited to the hank account of the policyholder and the receipt will he issued by the designated branch office. 8.1: IMPORTANCE OF TECHNOLOGIES IN INSURANCE

Introduction of technology in the insurance sector has improved every aspect of the industry. Technologies play a major role in data management process of an insurance agency by providing flawless services from underwriting policies, producing documents to collating various ratings and data. The state-of the-art implementations offers instantaneous accurate information about different insurances to the clients. Insurance firms regularly spend a part of their yearly premiums on modern technology that aids in enhancing the overall performance of the organization. Insurance technologies help the insurance agents to immediately respond to the requirements of the customers and technology has managed to cut back the annual expenditure of the organizations.

The basic purpose of insurance technologies is to reduce the paperwork of proposals and policies and address the customer services effectively in a shorter time than any other traditional methods. Information technology in insurance has made it easier for the customers too. Online availability of the insurance agencies allow the clients in dealing with application procedures, signing proposals and policies as well as in receiving quotes without even visiting the insurance office in person.

The best part of technology in insurance is that it helps the firms in reducing the costs by eliminating the mail rooms, paper files as well as the data entry clerks. The elaborate underwriting, data processing and the rating take place online and the customers or brokers receive the emailed policy documents within no time. This online advantage, however, comes with a price. The system requires a substantial initial investment in its primary stages but the owner certainly gets his returns on investment over the years that come equipped with superior services and response timings. 8.2: USING HEALTH INFORMATION TECHNOLOGY TO MANAGE YOUR INFORMATION

Using health information technology to manage your personal health information is an important part of our changing health care system. You and your doctor can better manage your health care by improving how you communicate with each other and how you maintain your health information.

Using computers and other electronic devices makes it easy for you, your doctor, and other health care providers (such as hospitals, labs, and X-ray facilities) to store, share and access your health information. Using computers in this way is known as Health Information Technology (HIT) or Health IT.

Health information technology may be useful for:

Reducing paperwork by eliminating the need for handwritten medical records. Reducing medical errors by transmitting accurate information electronically and eliminating mistakes due to misreading of your doctor's handwriting Reducing health care costs by decreasing the need for repeat medical tests by different doctors and eliminating storage space and staff time to maintain medical records Improving your quality of care by decreasing medical errors and assuring that all your health care providers have accurate and timely information

Although HIT has many uses throughout our healthcare system, three important types of health IT may affect you in the near future as more consumers use personal health records (PHRs) and more physicians use electronic health records (EHRs) and electronic prescribing (e-Rx).

Personal Health Records:

Your personal health record (PHR) is an online document with information about your health (and the health of family members) that you keep up to date for easy reference. Using your PHR, you can keep track of your family's health information, such as the date of your children's immunizations, last physical exam, major illnesses and operations, allergies, or a list of family medicines.

Many PHRs are easy to use and may be provided free from your health plan, the government, your doctor's office, and private companies. Some PHR companies charge a monthly or annual fee. Since your PHR is online, you can get into and manage your health information from anywhere that you have access to the internet.

Since you can collect, view, manage, and share your health information electronically. having a PHR will allow you to take a more active role in managing your own health care.

Electronic Health Records:

An electronic health record (EHR) is computer-based document that is used by your doctor, your doctor's staff, or a hospital. An EHR (similar to your old paper medical chart) contains health information from your doctor and other health care providers. A typical El IR has information about your health conditions, allergies, treatments, tests, and medications.

Many EHRs can connect with health care providers outside your doctor's office such as specialists, labs, imaging facilities (X-rays, CT Scans, MRIs), and the local hospital. This allows your doctor to share up-to-date information with your other providers as well as getting quick and easy access to your tests and hospital information. Since everyone involved your care can share accurate information, your EHR can help lower the chances of medical errors and may help improve the quality of your health care.CHAPTER 9. TECHNOLOGY DRIVE INSURANCE INDUSTRY GROWTH

To complete successfully and operate more efficiently, insurance companies are deploying information technologies such as devices, social media, big data, predictive modeling and cloud computing.

Maintaining a Competitive Edge:

Another insurer, Safeway Insurance, is the largest privately held, family-owned insurance company in the United States. The majority of its auto, home and renters insurance policies are sold via independent agents, so it's important that the company maintain a competitive edge with the online tools agents use to sell insurance.

"In recent years, like most businesses, we have shifted our point-of-sale system to a Web-based solution, which allows our independent agents access directly into our policy system in order to provide their customer with real-time pricing, payments and print documentation, if desired," says Mike Leather, director of IT operations.

This required IT to provide a reliable and fast infrastructure in order to maintain the agents' focus on selling Safeway products over those of its competitors. "If agents try to access the online point-of-sale system and encounter performance or availability problems, they'll move on to the carrier that has the next-best price and sell that policy to the customer sitting in front of them." Leather says. The company needs to maintain nearly 100 percent uptime for its Microsoft SQL Server-based point-of-sale application, called Safeway XChange. which agents rely on to provide quotes to customers, Leather says. Several years ago, a storage 110 bottleneck hampered the performance Of Safeway XChange, undermining sales efforts. As a result, agents complained of slow response.

The IT team quickly determined that the direct-attached storage system in place was no longer adequate for its application. It evaluated options and decided to deploy a virtualized storage area network (SAN), the Dell Equal Iogic SCSI. The system has enhanced performance and sped up recovery times.

As a result, the firm can support 16 percent more customers and 71 percent more agents, with no increase in the size of the IT staff. Other benefits include a 60 percent reduction in storage footprint; 99 percent decrease in complaints about slow performance; 20 percent improvement in 110 performance; and a 75 percent reduction in tape usage with disk-based backups, resulting in savings of $6,200 per year. The LIC is one of the largest users of Information Technology in India

The LIC is one of the largest users of Information Technology in terms of hardware and in house developed application software. The "Green Channel" is for on the spot policy completion and the "Single Window" provides all policy servicing at one single point.

The "CRM" module shows all the relevant details of a customer displaying his individual interest in particular plans and giving marketing leads to meet his future needs. The LIC has Wide and Metro Area Network Connect 90 centers covering 101 division and 2037 branches. Through the LIC's website people get information about the Corporation's products services, subsidies, and addresses of branches and about the premium payment through the internet. The LIC has installed Information Kiosles at prominent places in India.

9.1: IT COVERS YOUR INSURANCE

After growing use of mobile banking, insurance on mobile is the next big thing, say industry people

In the days to come, you may be able to carry out most of your insurance-related tasks in real-time; with insurance companies gradually increasing the use of information technology (IT)-driven solutions in their operations.

The development of mobile telephone-based solutions and technology for business process management is on the anvil, say industry experts.

Already, IT is the backbone for insurance operations on which most stakeholders carry out their business transactions, says Thomas Varghese, HeadIT, Bajaj Allianz.

"Starting from providing a quote, accepting a proposal, to issuing a policy, followed by post-sales servicing, claims processing, each step is dependent on the use of IT," he adds.

"The use of IT as an enabler and differentiator is already a well-recognized fact in the industry," agrees Srinivas Ayyarigar, Chief Operating Officer, Aegon Religare Life Insurance Company Ltd." Chapter 10 Issue in insurance industry use of technology

Producing more efficiently would give an insurer the option of increasing dividends to its owners, lowering the price of its products, increasing its employee and producer compensation, or some combination of these. The key to gaining a competitive advantage is the insurer's ability to identify and provide the incentives to meet stakeholders' often divergent needs innovatively and competitively.

One major development that insurers use to gain competitive advantage is the increased reliance on mobile computing (that is, using notebook computers with modems and cellular phone lines). Mobile computing originated in the industry to enable claim representatives to better serve their clients, the ability to record claim information at the scene of a loss and to send it immediately to the company greatly improved service. This first step allowed insurers to develop other ways of using mobile computing. With the advancements that have been made in modems, wireless communications, and note-book computers, insurers can now provide access to their computer systems to agents anywhere and at any time. The ability to connect to company intranets and Internet servers allows insurers to provide up-lo-date information to their agents, which in turn allows for making more informed business decisions. This is one more way that an insurer can use technology to gain competitive advantage. Optimizing Use of Information Resources

Technology has already permitted insurers to reap many benefits. With most of the major labor-saving applications already in place, insurers are moving into the less quantifiable gains from information technology, such as customer service improvements and product customization. to evaluate new systems and allocate their scarce resources for the greatest returns, managers must know the total costs of the company's investment, understand the organizational consequences of system changes, and be able to measure the benefits. Measuring Total Benefits

Just as insurers are more informed about the costs of an information technology project, insurers now recognize that they should determine the full range of the benefits of using information technology. For instance, an insurer would need to identify all of' the benefits that would result from automating a rating system, including those that cannot be measured but can only he estimated. The insurer should try to assign a cost to improved accuracy, faster service, smoother work flow, and other improvements. The search for benefits should not be limited to the rating unit, but should include savings realized in other units that perform the steps that precede and follow rating.

>. Internal Monitoring

Automated systems can keep track of the work they do, and they can also be designed to provide managers with summaries of processing activities and to report conditions that fall outside of defined limits. Automated systems can report on their own efficiency; the system counts the number of transactions and compares it to a number that management has set as a standard. Managers must be cautious when using a system to report on the performance of employees, and departments. Many managers make very selective use of a system's ability to, as some unit would say, spy on employees.

Properly designed systems can direct the manager's attention to the benefits or results produced as contrasted with tallies of keystrokes, items processed, or other activities. Moreover, the benefits to a range of stakeholders can be identified and reported. For example, a company could design its policy processing system to report measures of service that are important to its agents, such as the average time needed to calculate a quote or to issue a policy.

Data storage

Early electronic computers such as Colossus made use of punched tape. a long strip of paper on which data was represented by a series of holes, a technology now obsolete. Electronic data storage, which is used in modern computers, dates from the Second World War, when a form of delay line memory was developed to remove the clutter from radar signals, the first practical application of which was the mercury delay line. The first random-access digital storage device was the Williams tube, based on a standard cathode ray tube, but the information stored in it and delay line memory was volatile in that it had to be continuously refreshed, and thus was lost once power was removed. The earliest form of non-volatile computer storage was the magnetic drum, invented in 1937 and used in the Ferranti Mark 1, the world's first commercially available general-purpose electronic computer. IBM introduced the first hard disk drive in 1956, as a component of their 305 RAMAC computer system. Most digital data today is still stored magnetically on hard disks, or optically on media such as CD-ROMs. Until 2002 most information was stored on analog devices, but that year digital storage capacity exceeded analog for the first time. As of 2007 almost 94% of the data stored worldwide was held digitally:52% on hard disks, 28% on optical devices, and 11% on digital magnetic tape. It has been estimated that the worldwide capacity to store information on from less than 3 Exabyte in 1986 to 295 Exabyte in 2007,doubling electronic devices grew roughly every 3 years.

. Databases

Database management systems emerged in the 1960s to address the problem of storing and retrieving large amounts of data accurately and quickly. One of the earliest such systems was IBM's Information Management System (IMS), which is still widely deployed more than 40 years later. IMS stores data hierarchically, but in the 1970s Ted Codd proposed an alternative relational storage model based on set theory and predicate logic and the familiar concepts of tables, rows and columns. The first commercially available relational database management system (RDBMS) was available from Oracle in 1980.

Data retrieval

The relational database model introduced a programming-language independent Structured Query Language (SQL), based on relational algebra.

The terms "data" and "information" are not synonymous. Anything stored is data, but it only becomes information when it is organized and presented meaningfully.[ Most of the world's digital data is unstructured, and stored in a variety of different physical formats even within a single organization. Data warehouses began to be developed in the 1980s to integrate these disparate stores. They typically contain data extracted from various sources, including external sources such as the Internet, organized in such a way as to facilitate decision support systems (DSS).

Data transmission

Data transmission has three aspects: transmission, propagation, and reception. It can he broadly categorized as broadcasting, in which information is transmitted unidirectional downstream, or telecommunications, with bidirectional upstream and downstream channels.

XML has been increasingly employed as a means of data interchange since the early 2000s,particularly for machine-oriented interactions such as those involved in web-oriented protocols such as SOAP, describing "data-in-transit rather than data-at-rest".

Data manipulation

Hilbert and Lopez identify the exponential pace of technological change (a kind of Moore's law): machines' application-specific capacity to compute information per capita roughly doubled every 14 months between 1986 and 2007; the per capita capacity of the world's general-purpose computers doubled every 18 months during the same two decades; the global telecommunication capacity per capita doubled every 34 months; the world's storage capacity per capita required roughly 40 months to double (every 3 years); and per capita broadcast information has doubled every 12.3 years. Academic perspective

In an academic context, the Association for Computing Machinery defines IT as "undergraduate degree programs that prepare students to meet the computer technology needs of business, government, healthcare, schools, and other kinds of organizations if specialists assume responsibility for selecting hardware and software products appropriate for an organization, integrating those products with organizational needs and infrastructure, and installing, customizing, and maintaining those applications for the organization's computer users."

Conclusion

Technology in the insurance sector has improved every aspects of the industry. Technology play a major role in data management process of an insurance agency by providing flawless service from underwriting policies, producing documents to collecting various rating and data. This state of the-art implementations offers instantaneous accurate nil,' 'nation about different insurances to the clients. Insurance firms regularly spend a part of their yearly premiums on modern technology that aids in enhancing the overall performance of the organization. Insurance technologies help the insurance agents to immediately respond to the requirements of the customers and technology has managed to cut hack the annual expenditure of the organizations.

There is a variety of insurance technologies available in the market. The hardware and the insurance software should he chosen depending on the business necessities of the insurance agencies. Different insurance management systems and comparative rating systems enable the firms to generate more revenues by decreasing the span of output and input procedures.

Technology in insurance has changed the way the entire industry operates today. No longer do the loads of paperwork and manual labor hamper the process or leave scope for errors. As the awareness and demand for various insurances have risen so has the complexities of the business itself. Now there are policies for personal as well professional safety, for life, non-life health to a wide range of product insurances. On top of all these there has been globalization. Leading insurance brands have all gone global with their operations spreading across countries and across the different strata of society. And this is where insurance software systems have come in to streamline the volume of work and deliver quality services. Technology in insurance has also made the insurance industry go green. It has drastically cut down the amount of precious paper that would be otherwise used to manage and store all the data.