Information Technology In Insurance Industry Commerce Essay

Information engine room In damages Industry Commerce Essay restitution constitution in India finish be traced back to the Vedas. For instance, yogakshema, the name of biography restitution Corporation of Indias corporate headquarters, is derived from the Rig Veda. The term suggests that a form of community restitution was prevalent around 1000 BC and practiced by the Aryans.Burial societies of the kind found in ancient Rome were formed in the Buddhistic period to attend to families build houses, protect widows and children. Bombay Mutual Assurance Society, the first Indian life authorization society, was formed in 1870. Other companies interchangeable Oriental, Bharat and pudding stone of India were also come in up in the 1870-90s. It was during the swadeshi movement in the early 20th century that policy policy witnessed a big boom in India with some(prenominal) to a greater extent companies being set up.As these companies grew, the g overnment began to exercise contr ol on them. The Insurance Act was passed in 1912, followed by a detailed and revise Insurance Act of 1938 that looked into investment fundss, expenditure and oversight of these companies funds.By the mid-1950s, there were around 170 damages companies and 80 supportnt fund societies in the countrys life restitution scene. However, in the absence of regulatory clays, scams and irregularities were al nigh a way of life at most of these companies. As a result, the government decided nationalizes the life assurance traffic in India. The manners Insurance Corporation of India was set up in 1956 to take over around 250 life companies.HISTORY OF INDIAN indemnity MARKETInsurance has a long history in India. Life Insurance in its current form was introduced in 1818 when Oriental Life Insurance Company began its operations in India. General Insurance was however a comparatively advanced entrant in 1850 when Triton Insurance company set up its base in Kolkata. History of Insurance in India rat be broadly bifurcated into three eras a) Pre Nationalisation b) Nationalisation and c) Post Nationalisation. Life Insurance was the first to be nationalized in 1956. Life Insurance Corporation of India was formed by consolidating the operations of various indemnification companies. General Insurance followed showcase and was nationalized in 1973. General Insurance Corporation of India was set up as the controlling body with New India, United India, National and Oriental as its subsidiaries. The demonstrate of opening up the insurance sector was initiated against the background of Economic Reform surgical operation which commenced from 1991. For this utilisation Malhotra Committee was formed during this year who submitted their report in 1994 and Insurance Regulatory Development Act (IRDA) was passed in 1999. Resultantly Indian Insurance was opened for private companies and Private Insurance Company effectively started operations from 2001.PRESENT SCENARIO OF policy I NDUSTRY India with ab away 200 million middle class household shows a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in the market. Indians, form always seen life insurance as a tax saving device, ar now suddenly turning to the private sector that ar providing them new products and variety for their choice.Consumers remain the most important centre of the insurance sector. After the entering of the foreign players the industry is seeing a lot of competition and thus improvement of the customer aid in the industry. Computerisation of operations and updating of technology has fuck off imperative in the current scenario. Foreign players argon bringing in international best practices in service through use of latest technologiesThe insurance age nts still remain the main source through which insurance products are sold. The concept is very salutary established in the country like India barely still the increasing use of another(prenominal) sources is imperative. At present the distribution channels that are available in the market are listed below.Direct marketingCorporate agentsGroup sellingBrokers and cooperative societiesBanc assuranceCustomers have tremendous choice from a large variety of products from pure term (risk) insurance to unit-linked investment products. Customers are offered unbundled products with a variety of benefits as riders from which they can choose. More customers are buying products and services based on their true needs and not unspoilt traditional money back policies, which is not considered very appropriate for long-term protection and savings. in that respect is often of saving and investment plans in the market. However, there are still some key new products yet to be introduced e.g. he alth products. The agrarian consumer is now exhibiting an increasing propensity for insurance products. A research conducted exhibited that the rural consumers are resulting to dole out anything between Rs.3,500 and Rs.2,900 as gift each year. In the insurance the awareness level for life insurance is the highest in rural India, but the consumers are also aware about motor, accidents and cattle insurance. In a study conducted by MART the results showed that nearly one three said that they had purchased some kind of insurance with the maximum penetration skewed in favor of life insurance. The study also pointed out the private companies have huge task to play in creating awareness and credibility among the rural populace. The perceived benefits of buying a life policy range from security of income mountain return in future, daughters marriage, childrens education and good return on savings, in that order, the study adds.FEATURES OF insurance policy INDUSTRYInsurance constituti on India provides the clients with the details required for the reportage in the policy, date of commencement of the policy and their ad prefering organizations. It plays a important utilisation in the Indian insurance sector.The Insurance Policy India is regulated by trustworthy acts like the Insurance Act (1938), the Life Insurance Corporation Act(1956), General Insurance Business Nationalization) Act(1972), Insurance Regulatory and Development Authority IRDA) Act(1999). The insurance policy determines the covers against risks, sometime opens investment options with insurance companies setting high returns and also informs about the tax benefits like the LIC in India. There are two types of insurance covers1. Life insurance2. General insuranceLife insurance this sector deals with the risks and the accidents affecting the life of the customer. Alongside, this insurance policy also offers tax planning and investment returns. There are various types of life Insurance Policy IndiaE ndowment PolicyWhole Life PolicyTerm Life PolicyMoney-back Policy word Life PolicyGroup Insurance PolicyGeneral Insurance this sector covers almost everything related to property, vehicle, cash, household goods, health and also ones li index towards others. The major segments covered under general Insurance Policy India areHome InsuranceHealth InsuranceMotor InsuranceTravel Insurance tell apart OF THE PLAYER MARKET SHARE (%)Name of the PlayerMarket share (%)LIFE INSURANCE CORPORATION OF INDIA82.3ICICI PRUDENTIAL5.63BIRLA SUN LIFE2.56BAJAJ ALLIANZ2.03SBI LIFE INSURANCE1.80HDFC STANDARD1.36TATA AIG1.29MAX NEW YARK0.90AVIVA0.79OM KOTAK MAHINDRA0.51ING VYSYA0.37MET LIFE0.21SWOT ANALYSISStrengthRisk protection is provided by this sector only.Insurance having currently good market. value exemption.The variety of products is increasing.Insurance to build close relationship with customers.Good amount of RD into insurance200 million households waiting for householders insuranceWeaknessUnabl e to public lavatory the people about the products.Insurance companies instabilityLimited work capitalProducts or services similar to competitors.Higher tax nets for the middle classOpportunitiesTechnology is improving paperless transaction are available.Busy life, customer need flexible and customizable policies.Like mobile banking mobile insurance could be a hit.New innovations in technology-measuring weather variables.ThreatsWeather cycles.New substitute product emerging.Increasing expenses and lower profit margins with hard on the smaller agencies and insurance companies.Government regulations on issues like health care terrorism can restlessly change the direction on insurance.USE OF INRORMATION TECHNOLOGY IN INSURANCE INDUSTRYThe present scenario is much(prenominal) that the products sold with the help of Internet. The technological advancement is such that force the companies to take such steps. Still the full-fledged use of Internet is not through in our country. As sug gestion earlier the Internet based life insurance will help the companies to reduce the transaction cost and time. At the time it can improve the quality of service to its customers, which is the mission of the company.Internet can be an effective medium for educating the consumers about insurance. It serves as a single window for disseminating product, process and procedural information to the consumers.Product development and target marketing through the Internet with increase in the number of insurance companies there will be a need for market segmentation and subsequently product designed for each of them. In such a scenario Internet can be a effective channel for pushing product specific information to a finical market segment. Consumer feedback about a particular product as well as suggestions for different types or covers can also be generated through the Internet1. E-business insurance in India The Internet has played a vital role in transforming the business of the 21st ce ntury. Computers are now being used extensively for creating a storing entropy, information with the help of complex and sophisticated technological cats-paws in every kind of business. This change having been widely accepted, the advantages are numerous such as fast processing improved. Efficiency, cost reduction among several other benefits.2. Maintaining the database-The most important factor that is affecting the insurance industry is the marinating the database of the customers. The insurance industry having a huge list of the customers.In order to maintain it in manual of arms format it is really the work of stupidity. With the change in time the computers has taken the work of this things. Thus with the development of the technology it has becoming possible to maintain such huge database very easily. A person can switch over to the computer and get the details of the customer very easily. Thus maintaining the database has really receive easy due to the development in techn ology.3. E-Commerce in the Indian Insurance IndustryWith the advent of the Internet, online processes are replacing conventional models in our society. The greatest meet in online technology has been achieved by e-commerce. E-commerce is attractive twain to buyers and sellers as it reduces search costs for buyers and insventory costs for sellers. In this paper we investigate the impact of e-commerce on the insurance industry in India. The recent growth of Internet infrastructure and introduction of economic reforms in the insurance sector have opened up the monopolistic Indian insurance market to competition from foreign alliances. We study the evolving scenario in the insurance industry in India and identify the features of online insurance that improve the conventional insurance model and thus, fixs it more attractive for the Indian insurance industry to go online.TECHNOLOGY TREND IN INSURANCE MARKETComputerizationInitially, in the late 1950s the insurance companies used Unit R ecord Machines (Electro Magnetic Machines) to process data punched into cards. Computers were introduces in the mid 1960s and by the 1980s the Unit Phased Machines were phased out and the entire process was computerized. This brought about greater efficiency and quick service deliveryInternetToday, the cyberspace has completely changed the service delivery process. Internet is like a shot 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-mailsCompanies like LIC (www.licindia.com), ICICI (www.iciciprudential.com) all have websites from which people can get the information about their products, prices, various schemes, and lots of other information. People can also purchase the product through this website.Electronic Clearance Service (ECS)Almost all the big organizations today provide the ECS facility to i ts customers. A policy holder having an floor 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 bank account of the policyholder and the receipt will be issued by the designated branch office.Call Centres and SMS servicesAlmost all the insurance companies have their own call centres which cater to the phone based queries of the policyholders. This service is 247 and they have the Interactive Voice Response (IVR) systems at all the branchesINFORMATION TECHNOLOGY INTRODUCED IN LICLIC 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 crores policies is being held on computers in LIC. We have gone in for relevant and appropriate technology over the years.1964 saw the introduction of computers in LIC. Unit Record Machines introduced in late 1950s were phased out in 1980s and replaced by Microprocessors based computers in offset and Divisional Offices for Back Office Computerization. Standardization of Hardware and Software commenced in 1990s. Standard Computer Packages were developed and implemented for Ordinary and Salary Savings shunning (SSS) Policies.INSURANCE SOFTWAREThe online Insurance attention remains 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 functionsInsurance Software Solutions provider for all segments of the insurance community and insurance product solicitude. The web based Insurance Management placement Software solution helps to solve long-standing time-to-market challenges. The web based insurance trouble system expertise and solution can dramatically lessen the cost of policy ownership services.DIFFERENT TYPES OF INSURANCE SOFTWAREInsurance Policy disposition carcassInsurance 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 policy administration system is consisting of a number of policy administration domains.The domains are arranged in a hierarchy, representing descending levels of authority. makes Management SystemsThis system ensures claims are processed fast and efficiently. instrument flexibility is the key, and we aim to improver 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 sy stem to primary and secondary payers.Each claim is scrubbed with up-to- date Medicare rules.This Claim Processing System helps in quick resubmission for claimInsurance Agency Management SystemInsurance Agency Management System facilitates an insurance companys 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 businessInsurance mover Management SystemInsurance 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, and so forth 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 SystemPolicy 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 systemUser Management SystemA new substance abuser 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 ac tivities they performs, their data, their access information, etc.Endorsements Management SystemEndorsements to a backup insurance policy are addenda or attachments to the policy that may correct or modify a previously issued title policy, or alter or modify the provisions of the exceptions, conditions and stipulations of the title policy so that the insured party receives greater coverage than would exist under the terms of the unendorsed title policy.Data import / Export systemIt handles large amounts of data to import and export it securely.It does processing and management of large and sensitive data compression/decompressing and/or encryption/decryption allowing the exchange of data through the network with high performance and stability, exchange of data among Web server(s), business application server(s) and database server(s) and account information including user passwordsPolicy Registration and Quotations EnginePolicy registration is intended to be a vehicle for the explo ration and discussion of policy issues and is aimed in particular at enhancing communication between policy researchers, legislators, decision-makers, and professionals concerned with developing, implementing, and analyzing health policy.Policy quotations engine is an on demand quotation management feature join with detailed profit optimization and approval management engines.With quotation engine you can automate the sales and services processes that are currently being make using a hybrid of spreadsheets, documents and emails with little to no process control.When you have completed your quotation you can use the engine to seek approvals for non- standard set and/or terms and conditions. Discounts and loading management.Insurance Administration Management SystemInsurance Administration Management system can manage multiple administrators and can have the track of the right assigned to them.It takes care that all the Administrators function with the system as per the rights assi gned to them ad they can get their work done in efficient manner.Customizable and strong administration system.Insurance Sales Management can be managed by insurance sales system.Content Management System ModuleContent Management System is used for managing the capture, storage, security, revision control, retrieval, distribution, preservation and destruction of documents and content.Content Management System especially concerns content imported into or generated from within an organization in the course of its operation, and includes the control of access to this content from outside of the organizations processes.Insurance Document Management SystemIts important to maintain documents so that you can get to them faster, and easily. Even IT offers document management solutions for easy maintenance of your policies, endorsements, quotes, binders and the like. You can design your templates in common word processing tools, and the document management system will integrate and process t hese templates to generate and maintain documents. The documents can be retrieved at any time and are indexed in a database for quick searches.Insurance Document Management System is a secure file upload management system with built-in audit tracking, and is a plug-in extension to the occasion Central Portal.This System will maintain the generation of the various reports which will be provided to the users as per the requirement.The reports like Modification Report, Policy Management Report, Payments Received Report, Agent commission report, etc.Insurance Accounting and AutomationInsurance accounting is quite a complicated task, given the fact that there are so many issues with regulation, taxes, filing, commissions, brokers/underwriters, endorsements etc. We can build applications of insurance accounting systems and insurance billing systems that automate part of this task for you and help build better and more flexible solutions.Workflow solutionsWorkflow solutions that will ease the task of issuing claims, policies, reimbursements, payments etc. You can enforce hierarchical constraints and automate workflow, thereby ensuring that all your checks and balances are in place.AuditingInsurance is a highly regulated industry, so audit controls are very important. For this purpose, Radix can write audit control solutions customized to your purpose that will help you track and control business issues within your organizationBusiness IntelligenceReporting and charting solutions that will make sense of your data. We can help you analyze your past data for better decision-making and help you make more informed decisions.Online Data Back-up SystemOnline Back-up System is used to have the backed of 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 SystemOnline Back-up System is used to have the backed of 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 locationThe benefit of Online Insurance Management SystemRadix is the right technology choice for the vast majority of insurance-selling organizations on line. We have been almost 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.Our solution focus is on the following benefits.ComplianceSpeed- to-marketCost reductionWeb-enablementConsolidationIntegrationBusiness process flexibilityREFRENCES-WEB SITESwww.licindia.comwww.google.co.in/indian insurance industrywww.irdaindia. orgwww.equitymaster.comMAGZINESLife insurance vol 1 ICFAI PRESS 2002Life insurance vol 2 ICFAI PRESS 2002Insurance industry Emerging Trends ICFAI PRESS 2002Insurance lawfulness and regulation vol 1ICFAI PRESS 2002NEWSPAPEREconomic timesTimes of IndiaBusiness standardBOOKSLife-Insurance , by Mc GILLInsurance Industry by ICFAI yieldInsurance in India