Presentation Topic Computer Application in Insurance Industry

What is Computer?

“An electronic device which is capable of receiving information (data) in a particular form and of performing a sequence of operations in accordance with a predetermined but variable set of procedural instructions (program) to produce a result in the form of information or signals.”

- According to Oxford Dictionary

TYPICAL COMPUTER SYSTEM:

A typical digital computer consists of mainly:

a) A central processing unit (CPU) b) A memory c) Input/output (I/0) ports

Computer Technologies used in the Insurance Company

1. Tremendous role in the modern insurance industries

2. Online Insuring 3. To analyze risk4. Decrease the amount of time needed

to perform complex calculations 5. Increase the efficiency of this

industry 6. Records can be backed up easily

Insurance Companies are maintaining a database of all clients with information showing

• How to continue with policies• Starting date of the policies• Next due installment of a policy• Maturity date• Interests due• Survival benefits• Bonus

IT Department of Insurance Company

Department :

IT department is divide in 3 sectors

SoftwareHardwareNetworking

Northern Isurance run Oracle Applications. To improve performance and ensure compliance, insurers need effective, transparent analytics. Oracle technologies provide the modern, rules-driven flexibility insurers need to transform the way they do business. Oracle helps them to keep pace with ever-changing markets, simplify their IT environments, and transform the business into a21st-century model.

Software

Hardware

•Servers•Workstations •Laptop and desktop computers •Network switches•Routers•Scanner•Hub•Printer•PDAs•GPS devices, and much more

Networking

Two types of networking system they used,

1.Internet2.Intranet

An Intranet provides much high speed than the Internet. Intranet-based information is more secure than that of the Internet.

Internet

The Internet is a global system of interconnected computer networks

A local or restricted communications network, An intranet is a computer network that uses Internet Protocol technology to share information, operational systems, or computing services within an organization

Intranet

Backup System

Arrow is a backup system that combines hashing, error-correction, and rsync-like searching to provide a versioned, deduplicating, verifiable, and safe data backup system.

Arrow backup system

Physical backup

•Hard drive

•Outsource-DvD write

Application &Implementation

Computers have helped to streamline the insurance industry, making it possible for insurance companies and the agencies that represent them to take on more clients and provide them faster service. Computer systems and software applications help companies manage business operations efficiently

Record-Keeping

• Computers provide insurance agents and their staff members with a convenient way to store customer records.

Management information system

• Information about achievements and use of resources compared with targets and budgets can be prepared through computer-based systems maintaining information on various activities of the organization.

Time Saving• Before using computer in offices, it took

minimum 30-40 minutes to issue a document. But with the help of computer and internet it takes a few seconds to issue a document.

Assessing Risk• The insurance industry relies heavily upon actuarial

science in order to assess risk that clients or potential clients may present to the companyAdministration• A large number of administrative functions related to insurance research projects can be assisted by computers.

Financial accounting

• Preparation of financial statements through processing of revenue and expenditure documents on a day-to-day basis can be done by computers

Training and Research• Computer databases and Internet search engines

can help them look up information when they need to provide answers to questions they do not know.

Employee payrollGeneration of employee pay-slips and associated accounting. . Processing of basic salaries, allowances and recoveries to generate pay-slips would also facilitate automatic preparation of various statements to be sent to external agencies like insurance, provident funds and banks.

Project management Project-management software packages offer

facilities to accept project network data, perform resource analysis, scheduling, cost analysis and generate reports.

Planning In order to be competitive, mega

corporations, large-workforce organizations and even small and medium businesses need to do long range corporate planning in a systematic manner.

Communication Computer networks connected over an

intranet-based system or Web-based environment can communicate with one another.

Problems faced in implementing computer based working system:

1. Employees’ dissatisfaction.2. Excessive cost.3. Lack of skill.4. Not having realization of the advantage.5. Lack of training facilities. 6. Unacceptable by some employees.7. Need for new expert employees.8. Spending too much time.9. Uncertainity and dilemma.10.Software development development.11.Lack of technical support.12.Lack of Government support.

1. Employees’ dissatisfaction:In insurance sector employees were adopted with previous working system.

As computer based working system were not familiar them they were not accepting this kind of

system. They were raising issues like, “We are fine with our working system so why we have to

adopt with a new and unfamiliar system?”

2. Excessive cost: As the insurance companies turned their older system into computer based new

system, they had to make huge costs for implementing this kind of system.

3. Lack of skill :

Most of the employees were not properly skilled in computer. A research proved that most of the employees were over 40 years. They did not have the desire or interest in using computer.

4. Not having realization of the advantage:

As the employees did not have the realization about the advantage of adapting this kind of system, so they did not agree to adopt it. By adopting this system companies could communicate and would send data so quickly and safely but most of the employees was not aware of the advantage of this system.

5. Lack of training facilities: Employees in the insurance were not skilled in computer and alsothe had to gather skill to continue work with this new system. So there was a vital need of training. But the employees had to attend the office regularly and they had not enough time to be skillful in computer. So companies fell in dilemma. After attending office daily they had not time or scope to gather skill.

6. Not acceptable by all :

Some employees agreed to work with new computer based system and some put disagreement to work with new system. This kind of situation hampered the inner activities and collaboration among the employees.

7. Need for new expert employees :

As the insurance companies wanted to institutionalized this system the needed new skin full employees in computer. But finding skilled employees were to tough for the companies.

8. Disagreement among the senior employees:

New skillful employees were needed for the companies. But this matter created disagreement among the senior employees. They did not want to give chances to new employees because they did not wanted to lost their position. And it was mandatory to give chance to some new employees because companies needed expert employees in computer. And the senior employees had to loose their position as there were no job scope in those companies.

9. Spending too much time:

A new system required too much time to institutionalize. So this huge time can

hamper the activities of those companies. So there is a huge risk for insurance companies to adopt with this system.

10. Uncertainty and dilemma: When executives determined to institutionalize this system,

uncertainty arises among them. They were not sure about the success of this system.So dilemma rose among them. Those companies who did not institutionalize this system continuing their activities as past they were able to maintain their profit but those who institutionalized computer system were facing so many problems to continue their profit scale.

11. Software development dilemma:

As there were many software adoptable for those insurance companies but they had to choose the proper and cheaper one for them to continue the system properly. So there arise a dilemma for software development.

12. Lack of technical support: At the beginning companies had not enough technical support. They had to import

support from foreign countries. So unavailability of technical support created severe problem. As many technical expert were not prevalent as today, companies had to suffer a lot.

13.Lack of Government support :

Today we call our country a digital country because there is enough communication facilities within the country or outside of the country. But a few years ago BD were not as like as today Government were not able to digitize the country as today. So companies needed much govt. support which were not available.

Steps for Solving Stated Problems

• Arranging training program: – As most of the employees are unskilled,

companies can arrange training program. – After office session so that daily activities don’t

hamper.• Employing new expert employees:

New employees who are expert in using computer.

• Technical support : Support of technical experts from home and abroad.

• Developing suitable software: With the help of experts, developing software more suitable with a company’s type of tasks.

• Institutionalizing through a mutual way:Arranging meeting to motivate employees uninterested to use computers. Creating unity among employees can make the institutionalization process faster.

• Arranging seminars and workshops :To make employees aware of the advantages of using computer in insurance sector.