Information Technology In Insurance Industry Commerce Essay

Insurance in India can be traced back to the Vedas. For case, yogakshema, the name of Life Insurance Corporation of India ‘s corporate central office, is derived from the Rig Veda. The term suggests that a signifier of “ community insurance ” was prevalent around 1000 BC and practiced by the Aryans.

Burial societies of the sort found in ancient Rome were formed in the Buddhist period to assist households construct houses, protect widows and kids. Bombay Mutual Assurance Society, the first Indian life confidence society, was formed in 1870. Other companies like Oriental, Bharat and Empire of India were besides set up in the 1870-90s. It was during the swadeshi motion in the early twentieth century that insurance witnessed a large roar in India with several more companies being set up.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

As these companies grew, the authorities began to exert control on them. The Insurance Act was passed in 1912, followed by a elaborate and amended Insurance Act of 1938 that looked into investings, outgo and direction of these companies ‘ financess.

By the mid-1950s, there were around 170 insurance companies and 80 provident fund societies in the state ‘s life insurance scene. However, in the absence of regulative systems, cozenages and abnormalities were about a manner of life at most of these companies. As a consequence, the authorities decided nationalizes the life confidence concern in India. The Life Insurance Corporation of India was set up in 1956 to take over around 250 life companies.

History OF INDIAN INSURANCE MARKET

Insurance has a long history in India. Life Insurance in its current signifier was introduced in 1818 when Oriental Life Insurance Company began its operations in India. General Insurance was nevertheless a relatively late entrant in 1850 when Triton Insurance company set up its base in Kolkata. History of Insurance in India can be loosely bifurcated into three epochs: a ) Pre Nationalisation B ) Nationalization and degree Celsius ) Post Nationalisation. Life Insurance was the first to be nationalized in 1956. Life Insurance Corporation of India was formed by consolidating the operations of assorted insurance companies. General Insurance followed suit and was nationalized in 1973. General Insurance Corporation of India was set up as the commanding organic structure with New India, United India, National and Oriental as its subordinates. The procedure of opening up the insurance sector was initiated against the background of Economic Reform procedure which commenced from 1991. For this purpose Malhotra Committee was formed during this twelvemonth who submitted their study in 1994 and Insurance Regulatory Development Act ( IRDA ) was passed in 1999. Resultantly Indian Insurance was opened for private companies and Private Insurance Company efficaciously started operations from 2001.

PRESENT SCENARIO OF INSURANCE INDUSTRY

A India with approximately 200 million in-between category family shows a immense untapped potency for participants in the insurance industry. Impregnation of markets in many developed economic systems has made the Indian market even more attractive for planetary insurance big leagues. The insurance sector in India has come to a place of really high potency and fight in the market.A Indians, have ever seen life insurance as a revenue enhancement salvaging device, are now all of a sudden turning to the private sector that are supplying them new merchandises and assortment for their pick.

Consumers remain the most of import Centre of the insurance sector. After the entry of the foreign participants the industry is seeing a batch of competition and therefore betterment of the client service in the industry. Computerisation of operations and updating of engineering has become imperative in the current scenario. Foreign participants are conveying in international best patterns in service through usage of latest engineerings

The insurance agents still remain the chief beginning through which insurance merchandises are sold. The construct is really good established in the state like India but still the increasing usage of other beginnings is imperative. At present the distribution channels that are available in the market are listed below.

Direct merchandising

Corporate agents

Group selling

Agents and concerted societies

Banc confidence

Customers have enormous pick from a big assortment of merchandises from pure term ( hazard ) insurance to unit-linked investing merchandises. Customers are offered unbundled merchandises with a assortment of benefits as riders from which they can take. More clients are purchasing merchandises and services based on their true demands and non merely traditional money back policies, which is non considered really appropriate for long-run protection and nest eggs. There is tonss of salvaging and investing programs in the market. However, there are still some cardinal new merchandises yet to be introduced – e.g. wellness merchandises.

A The rural consumer is now exhibiting an increasing leaning for insurance merchandises. A research conducted exhibited that the rural consumers are willing to dole out anything between Rs.3,500 and Rs.2,900 as premium each twelvemonth. In the insurance the consciousness degree for life insurance is the highest in rural India, but the consumers are besides cognizant about motor, accidents and cattle insurance. In a survey conducted by MART the consequences showed that about one tierce said that they had purchased some sort of insurance with the maximal incursion skewed in favour of life insurance. The survey besides pointed out the private companies have immense undertaking to play in making consciousness and credibleness among the rural public. The sensed benefits of purchasing a life policy scope from security of income majority return in future, girl ‘s matrimony, kids ‘s instruction and good return on nest eggs, in that order, the survey adds.

FEATURES OF INSURANCE INDUSTRY

Insurance Policy India provides the clients with the inside informations required for the coverage in the policy, day of the month of beginning of the policy and their adopting organisations. It plays a of import function in the Indian insurance sector.

The Insurance Policy India is regulated by certain Acts of the Apostless 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 screens against hazards, sometime opens investing options with insurance companies puting high returns and besides informs about the revenue enhancement benefits like the LIC in India. There are two types of insurance screens:

1. Life insurance

2. General insurance

Life insurance – this sector deals with the hazards and the accidents impacting the life of the client. Alongside, this insurance policy besides offers revenue enhancement planning and investing returns. There are assorted types of life Insurance Policy India:

Endowment Policy

Whole Life Policy

Term Life Policy

Money-back Policy

Joint Life Policy

Group Insurance Policy

General Insurance – this sector covers about everything related to belongings, vehicle, hard currency, family goods, wellness and besides one ‘s liability towards others. The major sections covered under general Insurance Policy India are:

Home Insurance

Health Insurance

Motor Insurance

Travel Insurance

Name OF THE PLAYER MARKET SHARE ( % )

Name of the Player

Market portion ( % )

LIFE INSURANCE CORPORATION OF INDIA

82.3

ICICI PRUDENTIAL

5.63

BIRLA SUN LIFE

2.56

BAJAJ ALLIANZ

2.03

SBI LIFE INSURANCE

1.80

HDFC STANDARD

1.36

TATA AIG

1.29

MAX NEW YARK

0.90

AVIVA

0.79

OM KOTAK MAHINDRA

0.51

ING VYSYA

0.37

MET LIFE

0.21

SWOT ANALYSIS

Strength

Hazard protection is provided by this sector merely.

Insurance holding presently good market.

Tax freedom.

The assortment of merchandises is increasing.

Insurance to construct close relationship with clients.

Good sum of R & A ; D into insurance

200 million families waiting for homeowner ‘s insurance

Failing

Unable to convenience the people about the merchandises.

Insurance companies instability

Limited working capital

Merchandises or services similar to rivals.

Higher revenue enhancement cyberspaces for the in-between category

Opportunities

Technology is bettering paperless dealing are available.

Busy life, client demand flexible and customizable policies.

Like nomadic banking Mobile insurance could be a hit.

New inventions in technology-measuring conditions variables.

Menaces

Weather rhythms.

New utility merchandise emerging.

Increasing disbursals and lower net income borders with hard on the smaller bureaus and insurance companies.

Government ordinances on issues like wellness attention terrorist act can rapidly alter the way on insurance.

Use OF INRORMATION TECHNOLOGY IN INSURANCE INDUSTRY

The present scenario is such that the merchandises sold with the aid of Internet. The technological promotion is such that force the companies to take such stairss. Still the fully fledged usage of Internet is non done in our state. As suggestion earlier the Internet based life insurance will assist the companies to cut down the dealing cost and clip. At the clip it can better the quality of service to its clients, which is the mission of the company.

Internet can be an effectual medium for educating the consumers about insurance. It serves as a individual window for circulating merchandise, procedure and procedural information to the consumers.

Product development and mark selling through the Internet: with addition in the figure of insurance companies there will be a demand for market cleavage and later merchandise designed for each of them. In such a scenario Internet can be a effectual channel for forcing merchandise specific information to a peculiar market section. Consumer feedback about a peculiar merchandise every bit good as suggestions for different types or screens can besides be generated through the Internet

1. E-business insurance in India: –

The Internet has played a critical function in transforming the concern of the twenty-first century. Computers are now being used extensively for making a storing informations, information with the aid of complex and sophisticated technological tools in every sort of concern. This alteration holding been widely accepted, the advantages are legion such as fast processing improved. Efficiency, cost decrease among several other benefits.

2. Keeping the database: –

The most of import factor that is impacting the insurance industry is the marinading the database of the clients. The insurance industry holding a immense list of the clients.

In order to keep it in manual format it is truly the work of stupidity. With the alteration in clip the computing machines has taken the work of this things. Therefore with the development of the engineering it has going possible to keep such immense database really easy. A individual can exchange over to the computing machine and acquire the inside informations of the client really easy. Therefore keeping the database has truly become easy due to the development in engineering.

3. E-commerce in the Indian Insurance Industry

With the coming of the Internet, online procedures are replacing conventional theoretical accounts in our society. The greatest impact in online engineering has been achieved by e-commerce. E-commerce is attractive both to purchasers and Sellerss as it reduces hunt costs for purchasers and insventory costs for Sellerss. In this paper we investigate the impact of e-commerce on the insurance industry in India. The recent growing of Internet substructure and debut of economic reforms in the insurance sector have opened up the monopolistic Indian insurance market to competition from foreign confederations. We study the germinating scenario in the insurance industry in India and place the characteristics of on-line insurance that improve the conventional insurance theoretical account and therefore, makes it more attractive for the Indian insurance industry to travel online.

TECHNOLOGY TREND IN INSURANCE MARKET

Computerization:

Initially, in the late 1950 ‘s the insurance companies used Unit Record Machines ( Electro Magnetic Machines ) to treat informations punched into cards. Computers were introduces in the mid 1960 ‘s and by the 1980 ‘s the Unit Phased Machines were phased out and the full procedure was computerized. This brought about greater efficiency and speedy service bringing

Internet:

Today, the cyberspace has wholly changed the service bringing procedure. Internet is today used to even sell insurance policies. Internet is, in fact, turn outing to be one of the widely used distribution webs for selling insurance policies. Besides cyberspace is used for directing premium notices to policy holders through electronic mails

Companies like LIC ( www.licindia.com ) , ICICI ( www.iciciprudential.com ) all have web sites from which people can acquire the information about their merchandises, monetary values, assorted strategies, and tonss of other information. Peoples can besides buy the merchandise through this web site.

Electronic Clearance Service ( ECS ) :

About all the large organisations today provide the ECS installation to its clients. A policy holder holding an history in any bank which is a member of the local glade house can choose for ECS debit to pay premiums. The advantage here is that one time the option is exercised, the policy holder need non see a subdivision for paying the premium or roll uping the grosss. On the twenty-four hours indicated by the policy holder, the premium sum will be straight debited to the bank history of the policyholder and the reception will be issued by the designated subdivision office.

Call Centres and SMS services:

About all the insurance companies have their ain call Centres which cater to the phone based questions of the policyholders. This service is 24×7 and they have the Interactive Voice Response ( IVR ) systems at all the subdivisions

INFORMATION TECHNOLOGY INTRODUCED IN LIC

LIC has been one of the pioneering organisations in India who introduced the purchase of Information Technology in serving and in their concern. Data pertaining to about 10 crores policies is being held on computing machines in LIC. We have gone in for relevant and appropriate engineering over the old ages.

1964 saw the debut of computing machines in LIC. Unit of measurement Record Machines introduced in late 1950 ‘s were phased out in 1980 ‘s and replaced by Microprocessors based computing machines in Branch and Divisional Offices for Back Office Computerization. Standardization of Hardware and Software commenced in 1990 ‘s. Standard Computer Packages were developed and implemented for Ordinary and Salary Savings Scheme ( SSS ) Policies.

Insurance Software

The online Insurance Management System Software solution is a to the full automated and integrated policy processing system for both personal and commercial insurance bearers. It is a scalable, dependable, and cost-efficient solution for transporting out all business-critical insurance processing maps

Insurance Software Solutions supplier for all sections of the insurance community and insurance merchandise direction. The web based Insurance Management System Software solution helps to work out long-standing time-to-market challenges. The web based insurance direction system expertness and solution can dramatically decrease the cost of policy ownership services.

DIFFERENT TYPES OF INSURANCE SOFTWARE

Insurance Policy Administration System

Insurance policy disposal 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 disposal system is dwelling of a figure of policy disposal spheres.

The spheres are arranged in a hierarchy, stand foring falling degrees of authorization.

Claims Management Systems

This system ensures claims are processed fast and expeditiously. Operator flexibleness is the key, and we aim to improver operator productiveness while treating claims.

Real-time position for speedy resubmission and faster reimbursements.

Unique claim aging tool shows 1000s of claims position in one position.

Insurance Claims System uses electronic filing system to primary and secondary remunerators.

Each claim is scrubbed with up-to- day of the month Medicare regulations.

This Claim Processing System helps in speedy resubmission for claim

Insurance Agency Management System

Insurance Agency Management System facilitates an insurance company ‘s ability to turn to relationships with its merchandise distribution channels.

This system helps in pull offing current Agencies, can add New Agencies or Delete Current Agencies.

Insurance Agency Management System is the solution that delivers to pull off and turn your insurance bureau to help daily direction of your bureau. Agency direction utilized for little concern, single or endeavor concern

Insurance Agent Management System

Insurance Agent Management System maintains Multiple Agents from Multiple Agencies, maintain the path of their activities from Policy Registration to Claim processing.

All their informations, their committee, their policies position updates, etc. are taken attention by this faculty.

This Insurance system helps in smooth operation of the Agents working and makes the procedures faster and efficient.

Policy Management System

Policy enrollment is intended to be a vehicle for the geographic expedition and treatment of policy issues and is aimed in peculiar at heightening communicating between wellness policy research workers, legislators, decision-makers, and professionals concerned with development, implementing, and analysing wellness policy.

Policy reclamations and policy cancellation can be managed by the insurance policy direction system

User Management System

A new user registries by make fulling in a signifier on your web-site.

If necessary, the new user is first topographic point 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 watchword to do alterations.

You can utilize overviews of users for get offing intents etc..

User Management System manages all the users of the system i.e. Customer, Administrator or Agents.

It keeps the path of thee the activities they performs, their informations, their entree information, etc.

Endorsements Management System

Endorsements to a rubric insurance policy are addenda or fond regards to the policy that may rectify or modify a antecedently issued rubric policy, or alter or modify the commissariats of the exclusions, conditions and judicial admissions of the rubric policy so that the insured party receives greater coverage than would be under the footings of the unendorsed rubric policy.

Data import / Export system

It handles big sums of informations to import and export it firmly.

It does treating and direction of big and sensitive informations compression/decompression and/or encryption/decryption leting the exchange of informations through the web with high public presentation and stableness, exchange of informations among Web waiter ( s ) , concern application waiter ( s ) and database waiter ( s ) and account information including user watchwords

Policy Registration and Quotations Engine

Policy enrollment is intended to be a vehicle for the geographic expedition and treatment of policy issues and is aimed in peculiar at heightening communicating between policy research workers, legislators, decision-makers, and professionals concerned with development, implementing, and analysing wellness policy.

Policy citations engine is an on demand citation direction characteristic coupled with elaborate net income optimisation and blessing direction engines.

With citation engine you can automatize the gross revenues and services processes that are presently being done utilizing a loanblend of spreadsheets, paperss and electronic mails with small to no procedure control.

When you have completed your citation you can utilize the engine to seek blessings for non- criterion pricing and/or footings and conditions. Discounts and lading direction.

Insurance Administration Management System

Insurance Administration Management system can pull off multiple decision makers and can hold the path of the right assigned to them.

It takes attention that all the Administrators map with the system as per the rights assigned to them ad they can acquire their work done in efficient mode.

Customizable and strong disposal system.

Insurance Gross saless Management can be managed by insurance gross revenues system.

Content Management System Module

Content Management System is used for pull offing the gaining control, storage, security, alteration control, retrieval, distribution, saving and devastation of paperss and content.

Content Management System particularly concerns content imported into or generated from within an organisation in the class of its operation, and includes the control of entree to this content from exterior of the organisation ‘s procedures.

Insurance Document Management System

It ‘s of import to keep paperss so that you can acquire to them faster, and easy. Even IT offers document direction solutions for easy care of your policies, indorsements, quotation marks, binders and the similar. You can plan your templets in common word processing tools, and the papers direction system will incorporate and treat these templets to bring forth and keep paperss. The paperss can be retrieved at any clip and are indexed in a database for speedy hunts.

Insurance Document Management System is a secure file upload direction system with constitutional audit trailing, and is a plug-in extension to the Power Central Portal.

This System will keep the coevals of the assorted studies which will be provided to the users as per the demand.

The studies like Modification Report, Policy Management Report, Payments Received Report, Agent committee study, etc.

Insurance Accounting and Automation

Insurance accounting is rather a complicated undertaking, given the fact that there are so many issues with ordinance, revenue enhancements, filing, committees, brokers/underwriters, indorsements etc. We can construct applications of insurance accounting systems and insurance charge systems that automate portion of this undertaking for you and assist construct better and more flexible solutions.

Workflow solutions

Workflow solutions that will ease the undertaking of publishing claims, policies, reimbursements, payments etc. You can implement hierarchal restraints and automate work flow, thereby guaranting that all your cheques and balances are in topographic point.

Auditing

Insurance is a extremely regulated industry, so audit controls are really of import. For this intent, Radix can compose audit control solutions customized to your intent that will assist you track and command concern issues within your organisation

Business Intelligence

Reporting and charting solutions that will do sense of your informations. We can assist you analyse your past information for better decision-making and aid you make more informed determinations.

Online Data Back-up System

Online Back-up System is used to hold the backed of the information on another waiter so that in instance Original Data get Damage, Lost, etc. so the information is available for work.

This system helps in the Real Time Data Backup and maintains the information for the hereafter intent.

It besides installations the informations back-up at other Geographical location.

The benefit of Online Insurance Management System

Online Back-up System is used to hold the backed of the information on another waiter so that in instance Original Data get Damage, Lost, etc. so the information is available for work.

This system helps in the Real Time Data Backup and maintains the information for the hereafter intent.

It besides installations the informations back-up at other Geographical location

The benefit of Online Insurance Management System

Radix is the right engineering pick for the huge bulk of insurance-selling organisations on line. We have been closely associated with taking insurance participants. Radix is indispensable for successfully pull offing and turning your concern. Our web based insurance direction system can pull off your insurance concern absolutely.

Our solution focal point is on the undermentioned benefits.

Conformity

Speed- to-market

Cost decrease

Web-enablement

Consolidation

Integration

Business procedure flexibleness

REFRENCES: –

WEB SITES

www.licindia.com

www.google.co.in/indian insurance industry

www.irdaindia.org

www.equitymaster.com

MAGZINES

Life insurance vol 1 ICFAI PRESS 2002

Life insurance vol 2 ICFAI PRESS 2002

Insurance industry Emerging Trends ICFAI PRESS 2002

Insurance jurisprudence and ordinance vol 1ICFAI Imperativeness 2002

Newspaper

Economic times

Timess of India

Business criterion

Book

Life-Insurance, by Mc GILL

Insurance Industry by ICFAI Publication

Insurance in India

BACK TO TOP
x

Hi!
I'm Sam!

Would you like to get a custom essay? How about receiving a customized one?

Check it out