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Thesis Title: Sales and Commission System for an Insurance Firm

Researchers: McBilly Wilford Sy

Ralph Arman Sia

Introduction

In todays business economy, speed is of utmost importance. Being able to deliver fast and accurate data
in a blink of an eye are the standards of today's businesses. That is where computers come in.

Gone are the days of computers being very expensive and being seldom used for special scientific
purposes. Enormous number of computers ranging from small, inexpensive micro-sized units to super
computers, are now being used in hotels, factories, schools, hospitals, banks, financial institutions,
homes, government agencies and in almost all offices around the world.

In many businesses, especially corporate ones, the use of computers is a must. It increases productivity,
speed and accuracy. It continues to push innovation among all industries. It guarantees a secure storage
of vital informations where the data can be used over and over again in many years to come.

Background of the Study

The Philippine American Life and General Insurance Company, has been the premier life insurance
organization in the Philippines for over five decades now.

Leading the nation's life industry with 30% share of total premiums, Philamlife insures over a million
policyholders. It has the most extensive network of more than 200 offices throughout the Philippines, over
8,000 sales agents and 1,000 employees. It offers the most comprehensive range of insurance products
and services.

Philamlife was founded in 1947 by Cornelius V. Starr and Earl Carroll, two visionary men who set out to
help revive the post-war Philippine economy utilizing Filipino resources and self-reliance. Through a
nationwide campaign named "House of Savings", the Company effectively tapped the resources of
individual families and built up a reservoir of capital that was channeled into various industries and
sectors, thus, helping spur the growth of the economy.

Through the years, Philamlife has effectively fulfilled its dual role of providing financial protection to its
policyholders, and helping in capital formation by converting insurance premiums into investments.

Objectives of the Study

The main objective of the proponents' research is to design an online system that will automate all sales
and commissions of a life insurance agency in Philamlife, thereby making all transactions easier, faster
and more accurate.

Specific Objectives:

1. To develop an online system to compute all sales and commissions of agents in a specific agency.
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2. To increase productivity of agents by providing an automated system to track all their commissions.

3. To provide a secure storage for all transactions of a specific life-insurance agency.

Hypothesis of the Study

The proposed system will greatly improve the productivity of the agency and its agents. Primarily, this
study has the following hypothesis:

The demographic profiles of the respondents are the age, gender, civil status, occupation and length of
service. The respondents encountered numerous problems with the implementation of the existing
system, such as difficulties in organizing files, updating sales of agency and retrieving commissions of
agents. The proposed online system will definitely be a big improvement over the manual system. Not
only will this system provide faster and more efficient work among the agency, it will also provide more
accurate computations of data.

Statement of the Problem

The researchers' interest to conduct an investigation has led them to understand the company's present
problems:

1. What are the demographic profiles of the respondents in terms of:

a. Age

b. Gender

c. Civil Status

d. Position

e. Length of Service

2. What are the common problems encountered during the implementation of the existing system?

a. Speed in processing of records management tends to be slow.

b. Tallying of documents and applications are done manually.

c. Difficult and time consuming in deleting and updating the records.
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d. Storage of records is susceptible to be damaged or broken as well as lost of files.

3. What is the difference of the existing system and the proposed system in terms of:

a. Accuracy

b. Reliability

c. Efficiency

d. Speed

e. User-Friendliness

Assumptions

Based on the statements of the problem, the proponents make a plan for the statements that will
automate the manual system of records management with the updating of payments of clients of the
company and produce a better work and minimize the clerical errors. The following assumptions are:

1. The common problems encountered during the implementations of the existing system will be
eliminated.

2. Speed in updating the commissions of agents will have a faster performance.

3. Tallying of documents and proposals are already computerized.

4. It lessens the burden of work during processing of files and the updating of transactions.

5. Storage of records is now safe and not susceptible to damage or breakage as well as loss of files.

Scope and Limitation

After several interviews and observations, the researchers have come to identify how to further increase
productivity of the agents of an agency. The aim of the research is to provide a specific agency of
PhilamLife an online sales and commission system. The proposed system will track all transactions of the
agency through the internet.

This study is limited only to the sales and commission process. The proponents will make a program that
would provide a computerized operation on the processing of files and the updating of payments of the
clients of the company. The people involved in this system are the following: manager, employees and
agents.
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Significance of the Study

The proposed system would be very helpful to the following sectors:

Economical Significance. If implemented and used, the proposed software can be considered to be
economical because it can help the company lessen the expenses in terms of paper works.

Educational Significance. The outcome of the this study will be helpful to the company beginning with the
improvement of the system and for the future researchers by providing an idea of this study that will
somehow be of help in modifying or improving the outcome of the research.

Social Significance. The manager or the authorized personnel as well as the agents who would want to
know the information of the data can get the records faster and easier by just accessing on it.

Technological Significance. The proponents had this study because it is beneficial to the company's
records system, to have a computerized records management and to have a safe storage of files, clear
presentation of all the records which will facilitate in tracking down the records.