INFORMATION TECHNOLOGY

Roy Thomas

Introduction

The rapid innovations in the field of information and communication technology

Use and application of information technology in wide variety has direct impact on the productivity of resources, and sweepening impact on reducing the cost of various activities.

Accounting, policy issue and servicing, claim processing, sales management etc

Effectively utilized in

Speedy and correct issuance of documents

Expeditious disposal of claims

Proper building of accounts and statistics

Quality assurance & efficiency

Reduce

The paper work

Improve efficiency of service delivery

Provide competitive advantage to the insurance companies.

Technologies for Insurance

Allowing cross-border trade to become electronic and paperless, are increasingly offered to importers, exporters, shipping companies and financial institutions.

Spot service facilities for its customers while keeping its data base at a centralised location

Provides interesting working model, reduces cost of servicing but at the same time enables different users to access the data base and provide service on anywhere any time basis with M.I.S. Generation at all levels.

Database Management Systems

Principles of tracking and measuring responses can pay off

To find more clients, insurer needs to consider many factors, including cash value, premium and competition

The need to record and study the characteristics of persistency- the length of time we retain policies, customers and agents

Analysing a 10-year database is cost effective

Using database technology companies can get a comprehensive, performance, loyalty, and lost opportunity

Provides information on how many clients have actually migrated not just how many policies have lapsed or surrendered

Data Warehouse

Integrating a number of information systems into a one stop shopping' database to achieve vision of making company national in scope, but regional in focus.

Allows managing by profit levels with an integrated approach rather than by limiting losses.

Data mining can be used as a means to control costs and increase revenue resulting in enormous earning for effective users.

Decision Support Systems

Decision support systems will equip the insurance managers with ability to allow for customised products and services that are more in line with what customers want.

Group Linking Software

Enables sharing of information and particularly suits document heavy insurance business.

Tracking of policy application shows how information that is input and accessed from a number of locations can increase efficiency

Imaging and Work-Flow Technologies

The proposal forms may be scanned into an imaging system; data may be extracted for updates to computer and for automated underwriting workflow may be implemented.

Mapping

Insurers to meet different needsIdentifying loss prone areasGeographic claim analysis

Helps the insurer to analyse the extent of its network

Call Centre Technology

Good customer service is a crucial element in gaining, maintaining and retaining profitable customer

Video linking

Between an insurer and a broker allows underwriters at one place and brokers at other unit to discuss risk inherent in a proposal face to face.

Cat Models

Use data from the recent spate of natural disasters that helps develop more predictions of insurers' property exposures in future disasters.

Intranet, Extranet and Internet

Intranet is the network connecting different offices of the same business to permit the internal data within the business

Extranet is a network allowing the business to communicate with business partners like suppliers, vendors, banners, regulations etc. On the electronic channel.

Internet is a global network of many computer networks

IT APPLICATIONS IN FUNCTIONAL AREAS

MarketingConsumer Awareness

Information about the products and pricing policies can be made available to the public in few seconds and much transparency in operations can be established

To compare the insurance products of various issuers and decide the product suited to his needs.

The information about the new products changes in the existing ones

The information on various discounts and incentives can be provided at a much faster rate and lower cost.

Customer services

Market research

Consumers targeting and segmentation

Customizations of products

Easy procedures like premium payments, claims settlements, tracking of brokers and agents

Complaints management/grievance handling

Intermediary analysis.

Finance

Accounting

Treasury management

Financial performance reporting

Resource mobilization

Portfolio management

Investment planning

Human Resource Management

Recruitment and selection

Training

Performance appraisal

Promotions, transfers and dismissals

Valuations.

Research and Development

Surveys and research on market potential

Analysis of markets

Tracking with international norms and developments

MANAGEMENT INFORMATION SYSTEM

REGULATORY CONTROLThe usage of IT can help regulator having common norms

for the industry and test check for all the insurers for particular kind of business against these norms. Here again technology lends a big helping hand to the regulator.

Thank You.