Information technology uses in insurance industry
-
Upload
sujay-kumar -
Category
Economy & Finance
-
view
792 -
download
0
description
Transcript of Information technology uses in insurance industry
To Dr PRIYA GUPTA
BY: Sujay kumar
Samarth Roy
Shubham Dhangar
2
The use of technology in insurance improves every aspect of an agency's
data management system and processes. Insurance agents can quickly respond to the needs of
customers, using state-of-the-art technology that can instantly provide
accurate information to clients regarding insurance issues.
• Purpose
• Efficiency
• Convenience
• Information technologies' role in General Insurance
• How Is Information Technology Used inLife Insurance?
• Challenges Faced
• What needs to be done?
• IBM Solutions..
3
• The purpose of insurance technology is to dramatically reduce the amount of paperwork dealing with policies and proposals, and effectively meet the needs of clients in much less time than traditionally expected. Insurance technology eliminates a great deal of paper handling and travel cost once required by insurance agencies.
4
• Insurance technology allows insurers to increase revenue by automating service processes that were once exhausting and time-consuming. Now, insurance agents can generate more insurance policies, proposals and applications for new customers, thereby creating opportunities for faster purchasing.
5
• Insurance technology makes it easier on clients as well. Web-based agency sites allow clients to complete application processes, sign policies and proposals, and receive quotes without having to visit the insurance agency in person.
6
7
• A front office online system is used by general insurance industries.
• Benefits of front office system-
To carry out business transactions efficiently
Easy to handle growing volume of business and variety of business efficient customer services
Reduction in office expenses
8
• Policy Management has provisions for policy acceptance, client interaction window and policy printing. They should be able to store policies and the system should allow immediate access to a client portfolio. The policy management system generally has provisions for dealing directly through a broker or an agent or branch office.
9
• The software designed to handle reinsurance and claims. Reinsurance modules produce separators for each person’s obligations. Front Office System helps in recording, monitoring and progressing claims. The claims system provides all the facilities required to manage reserves, payments. recovery, accounting, claims history recording, statistics and various kinds of ratios.
10
• The accounting is generally integrated to policy management system and automatically produces debit/credit notes, renewals notices, cover notes, reminders, statements, etc. The system is able to handle taxes duties, reporting requirements as well as automatic calculation of midterm adjustments.
11
• The statistics module allows production of comprehensive statistical, analytical and management information. Reports can be in any different formats and should include detailed audits, performance reports for management.
12
• As technology improves, the life insurance industry evolves and benefits from new systems and methods of communicating information about applicants. Information technology increases the speed and efficiency with which underwriters evaluate new applicants and analyze aspects of their lives affecting the carrier's proposed financial risk.
• Many life insurance companies now use digital applications. Advanced computer software allows applicants and agents to enter pertinent information that previously had to be hand-written onto paper applications. Digital life insurance forms reduce the number of errors and omissions, and entirely eliminate problems with poor or illegible handwriting.
14
• Life insurance agents who use digital applications can capture client signatures on portable imaging devices. Small digital signature pads connected to laptop computers allow applicants to sign forms presented on computer screens, entirely eliminating the need to print documents. This reduces paper usage and ensures information will be transmitted accurately, as opposed to faxing or mailing printed documents, which can be lost, destroyed or otherwise compromised.
15
• Information technology allows carriers to review a potential client's driving records digitally in secured online databases.
16
• Digital information technology allows carriers to obtain and review criminal records quickly and efficiently. Applicants with undesirable criminal pasts get rejected immediately, reducing wasted time, effort and money on other analyses that would have otherwise been conducted while waiting for paper documents to arrive in the mail.
17
• Every applicant's information, along with the company's subsequent underwriting decisions, are stored in electronic databases. Potential clients' names and information are checked against this database to detect fraud and obtain relevant data discovered by other carriers.
18
•Modernize systems and the development environment.
•Companies need a collaboration-based IT environment that is robust, dynamic, and agile.
•Current legacy systems in many large corporations are not equipped as well as they could be in order to meet current or new business requirements.
•With so many applications running simultaneously in large insurance companies, and increasing volume and data loads, companies need to get more from what they have.
19
• Maintaining the right resources
• Keeping customers by quickly satisfying there demand.
• IT Spending
• Compliance and Regulatory Issue
• Mergers and Acquisitions
20
21
IT environments at insurance agencies are naturally complex. Reducing this complexity is a challenge for managers and has been compounded by other forces in today’s business
environment. This complexity can be reduced in a cost-effective manner through the proper mix of IT.
22
It is a platform which provides the strength required in Insurance Sector. It can be used for :-
• Operational Efficiency
• Expense Savings
• insurance companies can use their already-owned legacy application based mainframes and transform them by taking advantage of their built-in critical functions.
In a nutshell, it’ll provide a simplified IT infrastructure.
23
• The IBM mainframe improves data capture, retention, and access.
• Improved modernization tools make it much easier to publish back office data as Web services.
• This greatly increases the flexibility of the mainframe technology for employee and customer access to relevant data and, subsequently, increases short- and long-term customer loyalty.
24
• Companies that oversee and process thousands of transactions a day cannot afford a second of downtime.
• The mainframe’s reliability helps to ensure uninterrupted business.
• The current situation in the majority of large insurance companies is a distributed environment with several small servers doing duplicate work.
25
• Ideal hosting platform for businesses that have and are struggling to integrate multiple, disparate software solutions.
• The sheer amount of data an insurance company gathers can be searched and used for opportunities – especially if it is consolidated and therefore able to be cross-checked.
26
• To achieve growth, insurance firms will focus on a few key business drivers, including customer relationships, distributor relationships, new products, and mergers/acquisitions.
• Leveraging existing systems can help companies in two ways: it saves on spending while allowing growth and affording new opportunities.
• Mining the enormous amount of data that insurance companies have on hand can lead to new relationships and company success.
• Savings is crucial, but strategies for growth are just as, if not more, important.
27
• To achieve growth, insurance firms will focus on a few key business drivers, including customer relationships, distributor relationships, new products, and mergers/acquisitions.
• Leveraging existing systems can help companies in two ways: it saves on spending while allowing growth and affording new opportunities.
• Mining the enormous amount of data that insurance companies have on hand can lead to new relationships and company success.
• Savings is crucial, but strategies for growth are just as, if not more, important.
28
System Consolidation
• A centralized data centre can decrease risk. The mainframe can be used to decrease reliance on scattered infrastructure.
• System z helps enable firms to consolidate and tightly integrate multiple workloads on a single server with centralized systems management, reducing overall infrastructure spend.
• Centralizing CRM, Data Warehousing is a big step forward.
29
• Security in today’s electronic world is difficult to achieve, particularly in a distributed server environment.
• With its leading-edge security technologies, including high-performance cryptography and supporting middleware, System z enables the efficient processing of insurance policies and claims in a continuously available and resilient environment.
30
• The security-rich holistic design of the IBM mainframe can mitigate the risk of security breaches and help protect an organization's brand image – and bottom line.
• Originally designed to be shared by thousands of users, the IBM mainframe has security built into nearly every level of the computer – from the processor level, to the operating system, to the application level.
• This design helps protect System z from malware, viruses, and threats from insiders.
31
32