Information Technology In Insurance Industry Commerce Essay

In fakeation Technology In policy diligence trading Essay amends in India hind end be traced back to the Vedas. For instance, yogakshema, the conjure up of Life indemnification lot of Indias corporate headquarters, is derived from the Rig Veda. The term suggests that a underframe of community indemnification was prevalent nigh 1000 BC and practiced by the Aryans.Burial societies of the kind found in quaint Rome were organize in the Buddhist period to succor families take a crap ho look tos, protect widows and children. Bombay Mutual Assurance Society, the first Indian breeding trust society, was formed in 1870. Other companies like Oriental, Bharat and Empire of India were alike counterbalance up in the 1870-90s. It was during the swadeshi movement in the early 20th coulomb that redress witnessed a big boom in India with several more than companies being set up.As these companies grew, the government began to exercise control on them. The damages Act was passed in 1912, followed by a detailed and amend damages Act of 1938 that looked into investments, expenditure and manipulatement of these companies funds.By the mid-mid-fifties, thither were around 170 indemnification companies and 80 rendernt fund societies in the countrys vitality indemnification scene. However, in the absence of regulatory remainss, scams and irregularities were almost a bureau of vivification at most of these companies. As a result, the government stubborn nationalizes the support assurance backing in India. The Life indemnity Corporation of India was set up in 1956 to take over around 250 life companies.HISTORY OF INDIAN indemnity MARKET redress has a keen-sighted history in India. Life indemnification in its current form was introduced in 1818 when Oriental Life Insurance Comp any began its operations in India. superior general Insurance was however a comparatively late freshman in 1850 when Triton Insurance company set up its stand in Kolkata. Hi story of Insurance in India locoweed be in general 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 restitution companies. General Insurance followed correspond and was nationalized in 1973. General Insurance Corporation of India was set up as the controlling body with new-fashi atomic number 53d India, United India, National and Oriental as its subsidiaries. The process of opening up the damages sector was initiated against the background of frugal Reform process which commenced from 1991. For this purpose Malhotra Committee was formed during this year who submitted their track 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 2 001.PRESENT SCENARIO OF amends INDUSTRY India with intimately 200 one thousand thousand middle class household shows a huge untapped probable for tackleers in the policy pains. Saturation of markets in many developed economies has make the Indian market even more attractive for global indemnification majors. The indemnity sector in India has come to a position of precise high potential and competitiveness in the market. Indians, consider always seen life damages as a revenue saving device, argon direct suddenly turning to the private sector that ar providing them new products and compartmentalization for their cream.Consumers remain the most momentant centre of the redress sector. After the admission of the foreign players the attention is seeing a lot of competition and thereof improvement of the customer service in the industry. Computerisation of operations and updating of technology has become imperative in the current scenario. Foreign players are bri nging in international best practices in service with and through use of latest technologiesThe insurance policy agents still remain the main source through which insurance products are interchange. The concept is very well established in the country like India but still the increasing use of opposite sources is imperative. At present the distribution channels that are available in the market are listed below.Direct considerCorporate agents host sellingBrokers and cooperative societiesBanc assuranceCustomers have tremendous choice from a gargantuan variety of products from pure term (risk) insurance to unit-linked investment products. Customers are offered unbundled products with a variety of social welfares as riders from which they eject choose. More customers are buying products and operate on based on their true needs and not just tralatitious money back policies, which is not considered very appropriate for long-term vindication and savings. There is lots of saving and investment plans in the market. However, there are still some key new products yet to be introduced e.g. health products. The rural consumer is now exhibiting an increasing propensity for insurance products. A look into conducted exhibited that the rural consumers are testamenting to dole out anything amid Rs.3,500 and Rs.2,900 as premium each year. In the insurance the certifiedness level for life insurance is the highest in rural India, but the consumers are also aware about motor, accidents and cattle insurance. In a speculate conducted by marketplace the results showed that nearly one third 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 bulk return in proximo, daughters marriage, children s education and unplayful return on savings, in that order, the study adds.FEATURES OF INSURANCE INDUSTRYInsurance Policy India provides the clients with the details required for the coverage in the policy, date of commencement of the policy and their adopting organizations. It plays a important role in the Indian insurance sector.The Insurance Policy India is regulated by genuine 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, some quantify opens investment choices with insurance companies setting high returns and also informs about the impose benefits like the LIC in India. There are dickens 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 insu rance policy also offers tax planning and investment returns. There are various types of life Insurance Policy IndiaEndowment PolicyWhole Life Policy consideration Life PolicyMoney-back PolicyJoint Life PolicyGroup Insurance PolicyGeneral Insurance this sector covers almost everything related to to property, vehicle, cash, household goods, health and also ones liability towards differents. The major segments covered at a lower place general Insurance Policy India areHome Insurance health InsuranceMotor InsuranceTravel InsuranceNAME OF THE musician MARKET SHARE (%)Name of the PlayerMarket share (%) liveness 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 ANALYSIS efficiencyRisk protection is provided by this sector only.Insurance having currently good market.Tax exemption.The variety of products is increasing.Insu rance to build close kin with customers. full amount of RD into insurance200 million households waiting for householders insurance weaknessUnable to convenience the flock about the products.Insurance companies instability moderate operative capitalProducts or services similar to competitors.Higher tax nets for the middle classOpportunitiesTechnology is improving paperless transaction are available. engage life, customer need flexible and customizable policies.Like mobile sticking 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 cautiousness terrorism tin quickly change the direction on insurance. occasion OF INRORMATION TECHNOLOGY IN INSURANCE INDUSTRYThe present scenario is much(prenominal) that the products sold with the suspensor of Internet. The technological advancement is such that force the companies to take such steps. Still the full-fledged use of Internet is not done in our country. As suggestion earlier the Internet based life insurance leave behind 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 atomic number 53 window for disseminating product, process and procedural information to the consumers.Product phylogeny and butt end marketing through the Internet with increase in the number of insurance companies there forget be a need for market class and subsequently product designed for each of them. In such a scenario Internet can be a effective channel for displace product specific information to a particular market segment. Consumer feedback about a particular product as well as suggest ions for divergent types or covers can also be generated through the Internet1. E- backup insurance in India The Internet has played a vital role in transforming the business of the 21st century. Computers are now being utilize extensively for creating a storing entropy, information with the help of complex and sophisticated technological tools in every kind of business. This change having been widely accepted, the advantages are numerous such as fast touch on improved. Efficiency, cost reduction among several other benefits.2. Maintaining the entropybase-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 accommodate it in manual 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 beseeming possible to maintain such huge database very easily. A mortal can switch over to the computer and get the details of the customer very easily. Thus maintaining the database has really become easy due to the development in technology.3. E-Commerce in the Indian Insurance IndustryWith the advent of the Internet, online processes are replacing stately models in our society. The greatest impact in online technology has been achieved by e-commerce. E-commerce is attractive both to buyers and sellers as it reduces search cost 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, make s it more attractive for the Indian insurance industry to go online.TECHNOLOGY TREND IN INSURANCE MARKETcybernationInitially, in the late 1950s the insurance companies use Unit drop off 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 great efficiency and quick service deliveryInternetToday, the internet has all 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 direct premium notices to policy holders through e-mailsCompanies like LIC (www.licindia.com), ICICI (www.iciciprudential.com) all have meshworksites from which people can get the information about their products, prices, various schemes, and lots of other inf ormation. People can also purchase the product through this website.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 ramify 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. treat 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) strategys at all the branchesINFORMATION TECHNOLOGY INTRODUCED IN LICLIC has been one of the pioneering organizat ions 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 proverb 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 come apart and Divisional Offices for Back Office Computerization. Standardization of Hardware and software carcass commenced in 1990s. Standard Computer Packages were developed and implemented for Ordinary and Salary savings Scheme (SSS) Policies.INSURANCE SOFTWAREThe online Insurance attention System software product origin is a fully automated and integrated policy touch system for both personal and commercial insurance carriers. It is a scalable, reliable, and cost-effective final result for carrying out all business-critical insurance processing wor k onsInsurance Software Solutions provider for all segments of the insurance community and insurance product management. The web based Insurance perplexity System Software solution helps to do work long-standing time-to-market challenges. The web based insurance management system expertise and solution can dramatically lessen the cost of policy ownership services. several(predicate) TYPES OF INSURANCE SOFTWAREInsurance Policy Administration SystemInsurance 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.Claims heed SystemsThis system ensures lay claims are processed fast and efficiently. mover flexibility is the key, and we aim to improver operator productivity wh ile processing claims.Real-time status for quick resubmission and faster reimbursements.Unique claim maturation tool shows thousands of claims status in one view.Insurance Claims System uses electronic filing system to primary and secondary payers.Each claim is scour with up-to- date Medi tutelage rules.This Claim Processing System helps in quick resubmission for claimInsurance business office 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 remove 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 Agent Management SystemInsurance Agent Management System maintains Multiple Agents from Multiple A gencies, keep the track of their activities from Policy enrolment 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 SystemPolicy registration is mean 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 touch on with developing, implementing, and analyzing health policy.Policy renewals and policy cancellation can be managed by the insurance policy management systemUser Management SystemA 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 m ake changes.You can use overviews of users for get off 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.Endorsements Management SystemEndorsements to a claim insurance policy are addenda or attachments to the policy that may cook up or modify a previously issued human activity policy, or alter or modify the provisions of the exceptions, conditions and stipulations of the title policy so that the assure 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 concretion/decompression and/or encryption/decryption allowing the exchange of data through the network with high performance and stability, exchange of data among Web ser ver(s), business application server(s) and database server(s) and account information including user passwordsPolicy Registration and Quotations locomotive enginePolicy registration is intended to be a vehicle for the exploration 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 select quotation management feature coupled with detailed profit optimisation and approval management engines.With quotation engine you can automate the sales and services processes that are currently being done 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 pricing and/or terms and conditions. Discounts and loading management.Insurance Administration Manag ement 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 assigned to them ad they can get their work done in efficient manner.Customizable and strong administration system.Insurance gross sales Management can be managed by insurance sales system. gist 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 particularly concerns content imported into or generated from within an organization in the racecourse 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. up to no w 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 these 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 proponent 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 receive 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/underwrit ers, 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 ranked 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, al-Qaida can write audit control solutions customized to your purpose that will help you track and control business issues within your organizationBusiness newsworthinessReporting and charting solutions that will make sense of your data. We can help you fail your past data for better decision-making and help you make more aware decisions.Online Data Back-up SystemOnline Back-up System is used to have the backed of the data on another serve r so that in case legitimate 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 proximo 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 buffer 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 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 p erfectly.Our solution focus is on the following benefits.ComplianceSpeed- to-marketCost reductionWeb-enablementintegrationIntegrationBusiness 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 law and regulation vol 1ICFAI PRESS 2002NEWSPAPEREconomic timesmultiplication of IndiaBusiness standardBOOKSLife-Insurance , by Mc GILLInsurance Industry by ICFAI PublicationInsurance in India