Professional Documents
Culture Documents
Project in Insurance Sector
Project in Insurance Sector
Recent advances in information technology are changing the insurance business. Some
of the changes are hidden away in the back office, invisible to the public. But dramatic
changes are coming in the most visible part of insurance, its sales or distribution
function. The technological advances place in the hands of insurance companies and
agents the tools to bring new savings and better service to consumers. That opens the
door to rapid shifts in the winners and losers in this highly competitive business.
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OBJECTIVES OF THE STUDY :-
Chapter 1
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INTRODUCTION TO INFORMATION TECHNOLOGY IN
INSURANCE SECTOR
1.1 INTRODUCTION
Insures traditionally have been quickly to adapt latest advances in the technology.
This is happening in the areas of IT as well. The extent of IT application will vary
between insures. The information technology has always played a very important role in
the operations of every life insurance company. In fact of all the business organizations in
the service sector, the life insurance companies were the first to adopt
‘MECHANIZATION’ as an inalienable part of their operation all over the world.
2. The need to evaluate the liabilities under the policies in vogue at the time of valuation.
The life insurance companies switched over to ‘schedule type’ of the policy
documents. Here the form of policy bond was standardized and as most of the condition
and privileges were similar, pre- printed stationery was prepared. The only work left was
to fill up the details of each individual policy, viz. policy number, plan and period of
assurance, sum assured, mode of payments of premiums, installment premium, date of
last payment of premium, date of maturity of the policy, age and whether admitted or not,
name address of the policyholder, name of the nominee, etc. In order to complete the
schedule of the policy bond with these particulars, addressograph machines were
introduced.
Policy particulars were embossed on Zinc or Aluminum plates and these plates
were used to print the particulars in the schedule part of the pre- printed policy bonds.
These plates were then used to print advance premium and default notices, premium
receipts with counterfoils and final lapse intimations sent to the policyholders. The
companies also had ‘Unit Record Machines’ otherwise called ‘Power Samas Machines’
which were operated using punch cards. These were parallel records in which policy
particulars were punched in the prescribed fields.
1. Premium Master Cards Premium Master Cards were utilized to account for the
premiums received and then for generating lists of lapsed policies.
2. Valuation Cards Valuation Cards were prepared to be utilized for the valuation of
Liabilities under the policies.
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There was one-on-one correspondence between the adrema plates and premium
master cards. With the advent of the micro processors, the addressograph machines along
with the adrema plates and the ‘ unit record machines’ along with the premium master
cards became redundant and went out of use. Both were replaced by a new kind of record
called ‘Policy Master’ for each policy, integrating both adrema plate and the premium
master cards. Apart from the ease with which servicing of the policies could be rendered
through micro processor operations, the speed with which the same can be undertaken.
The speed was necessary because of the tremendous increase in the volume of the new
business and much larger increase in the number of service operations.
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1.3 IMPORTACE OF TECHNOLOGIES IN INSURANCE SECTOR
Introduction of technology in the insurance sector has improved every aspect of the
industry. Technologies play a major role in data management process of an insurance
agency by providing flawless services from underwriting policies, producing documents
to collating various ratings and data. The state-of the-art implementations offers
instantaneous accurate information about different insurances to the clients. Insurance
firms regularly spend a part of their yearly premiums on modern technology that aids in
enhancing the overall performance of the organization. Insurance technologies help the
insurance agents to immediately respond to the requirements of the customers and
technology has managed to cut back the annual expenditure of the organizations.
The best part of technology in insurance is that it helps the firms in reducing the
costs by eliminating the mail rooms, paper files as well as the data entry clerks. The
elaborate underwriting, data processing and the rating take place online and the
customers or brokers receive the emailed policy documents within no time. This online
advantage, however, comes with a price. The system requires a substantial initial
investment in its primary stages but the owner certainly gets his returns on investment
over the years that come equipped with superior services and response timings.
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There is a variety of insurance technologies available in the market. The hardware and
the insurance software should be chosen depending on the business necessities of the
insurance agencies. Different insurance management systems and comparative rating
systems enable the firms to generate more revenues by decreasing the span of output and
input procedures.
Insurance technologies have made insurance services mobile with the availability of
smart phones and such devices. Insurance companies use these devices to provide faster
services like view policies, obtain quotes, and report claims through live chat application.
Such improvements would have been impossible if there were no insurance technologies
available within the industry.
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1.4 NEED FOR INFORMATION TECHNOLOGY IN THE
INSURANCE SECTOR
The rapid innovation in the field of information and communication technology has
posed serious challenges for the insurance industry in India. The use and application of
information technology in wide variety of insurer’s operations has now become strategic
in the sense that it has direct impact on the productivity of resources, and a sweepening
impact on reducing the case of various activities. With the arrival of private insurance
players, the competition has become more intense and an important role is being played
by the insurance sector. Even though the use of information technology is not new to the
insurance sector, yet we may find tight compartmentalization regarding the use of
information technology in various departments of the insurance companies including the
major players since last 50 years. The most visible of these departments are accounting,
policy issue and servicing, claim processing, sales management etc.
Therefore the imperative for all the insurers, especially LIC and GIC is to build up an
efficient interface between the various departments and segments. This would reduce the
paper work, improve efficiency of service delivery and provide competitive advantage to
the insurance companies.
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Chapter-2
2.1 INTRODUCTION
A new business module was introduced which enable even underwriting operations
to be computerized. It brought a complete integration of all activities connected with the
processing of policy documents Similarly, loans and surrender value module, policy
revival module, claims module were also introduced. Now revival quotations, a policy
quotations or maturity claims intimation letters are generated on the Computer. All these
gave tremendous boost to the efficiency in rendering service to the policyholders Up
gradation of technology also helped in another direction. Several reports which could be
used as MIS get generated for use by managers at all levels. This helps management to
review performance against prescribed indices and to take appropriate corrective actions
where necessary. To bring out the revolutionary changes in communication to
policyholders, several steps were taken.
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offices convenient to them in the cities. Now, many of the cities with MAN are connected
by WAN, which enables policyholders to pay premium anywhere in the country. E-mail
connections have been established in many of the offices and internet connections has
been given to all the divisional offices, all department in all the zonal offices and central
offices.
The steps taken by LIC of India during the past 5 to 6 years are an indication of the
importance role that information technology can play in ensuring a very high quality in
the serving operations of a life insurance company. Several private life insurance
companies are also utilizing the latest technology available including creating their own
web sites. A few private web sites like ‘Bima online ‘also have been established
Technology is the most important tool in another very important area of life insurance
functions. It is valuation. The process by which the values of various polices of insurance
existing at a point of time are obtained is called valuation’ of liabilities of an insurer was
small, policy values used to be calculated for individuals policies. But when the number
of policies runs into several lakh or crore, as a present it is extremely inconvenient to
calculate the value of each contract separately. Methods have, therefore, been devised to
collect data for each plan of insurance in a form suitable for valuation in groups having
some common characteristic like age, duration or term to run to maturity and like.
Grouping is done only if there is sufficient number of policies to make the group of a
reasonable size. For a sufficient large life insurance organization, this work is possible
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only through application of technology. It is a legal requirement today in our country for
a life insurance company to conduct an actuarial valuation every year.
The life insurance has become very dynamic. The needs, aspirations, attitudes,
buying behaviors, standards and quality of life are changing. The perceptions of what
constitutes standards and quality of life are changing. The perceptions of what constitutes
standard of life is also undergoing a metamorphosis. Different types of product are the
need hour. The demand is more for ‘flexible’ rather than ‘packaged’ products especially
in the service market. To certain its share and to improve it, there is no alternative for any
life insurance company than to have a continuous market research. The company should
know the demographic changes taking place in the society. They should know what is
selling and where. They should know the pace of sales on the day to day basis.
They should not only know the emerging customer profile but also the size of the
market. All these need a scientific market survey and research either done in house or
outsourced. A typical market survey report is appended which shows the enormity of the
job. Without the support of technology, this will be an impossible task for the company.
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2.2 IT APPLICATIONS IN FUNCTIONAL AREAS
Even though the information technology has wide application in all the spheres of the
insurance business, yet following are the most important ones in respective functional
areas: Marketing The scope for use of Information Technology in marketing function is
tremendous. It may start from the consumer acquaintance to an insurance product to
claims settlement or further selling of new products or developing consumers for the
products. Information technology can be integrated with almost all the P’s of marketing.
It may help in formulation and implementation of various marketing strategies including
pricing, promotion and customization strategies.
a) Consumer Awareness:-
The use of Information Technology may be path breaking for the insurance companies
since conventionally the awareness of the insurance products in India is low. With the use
of Internet the information about the products and pricing policies can be made available
to the public in few seconds and much transparency in operations can be established.
There are numerous websites available which can help the prospective customers to
compare the insurance products of various issuers and decide the product suited to his
needs. Also, the information about the new’ products changes in the existing ones and of
course, the information on various discounts and incentives can be provided at a much
faster rate and lower cost.
b) Customer Services:-
The insurance being a service needs high concerns in terms of services. Customer service
requires maximum attention and should span the entire gamut of activities in the purchase
of a product i.e. right from the dissemination of information, documentation to policy
administration and claim settlement. The service quality standards of the new private
insurance players have posed a threat to the-then giants viz. the LIC and GJC. The
investments in the personnel and knowledge systems have helped private player’s
companies build significant domain expertise.
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The emerging areas of IT applications are:
(4) Easy procedures like premium payments, claims settlements, tracking of brokers and
agents
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2.3 IT APPLICATION IN HUMAN RESOURCES MANAGEMENT
(2) Training,
(3) Performance valuations etc. Research and Development R&D has been made an easy
task with the increasing use of IT. Surveys and research on market potential, analysis of
markets, tracking with international norms and developments are the profound areas of IT
applications.
(4) Appraisal,
(6) Impact of Technology on Insurers Any new adoption needs time to get acquainted
with the users until they gain enough confidence & knowledge in that system.
Recent studies reveal that consumers lack passion for insurance because of its
complexity, but despite these push backs, a growing number of insurers are intrigued by
the significant cost saving & customer-retention benefits to be gained through online self-
service. Although carriers think that by encouraging insurers to do transactions by online
services, which would reduce operational costs vastly, they are very cynical of investing
in web technology with dot-corn collapse.
The trick lies in educating insurers about the concept and benefits of eservices in this
sector. Driving client to initial online self-service experience into something more
interactive by call services that would involve human interactions will certainly have a
greater impact. This balanced approach is how most insurers are enabling online self-
service that not only make sense for policyholders, but also provides support for
intermediaries and agents.
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The main challenge for any health company’s website would be bringing all sections
of people to view their site. They should show some positive incentives to bring
customers to their websites. Online services have own advantages like accessibility of
information 24/7, visualization of information, providing interactive plan finder tools,
adding useful links to the websites, live chat technologies etc. An online activity helps to
give necessary knowledge to consumers, which is very positive, because it implies that
when people learn more they establish a deeper relationship and a broader dialogue with
the carrier. Agents and brokers also enjoy the efficiencies that come with writing new
businesses and servicing their customers on websites. About 55% to 60% of customers
take booklets electronically.
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2.4 TECHNOLOGIES FOR INSURANCE
There has never been a time when the effective use of information technology has
been more crucial to the success of the insurance industry. The insurance markets are
being revolutionized by technology at a high speed pace. IT and software solutions,
allowing cross-border trade to become electronic and paperless, are increasingly on offer
to importers, exporters, shipping companies and financial institutions.
The principles of tracking and measuring responses can pay off for the conventional
insurance industry. To find more clients, insurer needs to consider many factors,
including cash value, medium and competition. But the need to record and study the
characteristics of persistency- the length of time we retain policies, customers and agents
is most important in insurance companies. In order to find out profitable combinations of
households or clients, products and agents, a database with five to ten years’ history is of
immense importance. Such historical retention was prohibitively expensive in the past.
But clear advantages of new PC (Personal computer) and RISC (Reduced Instruction
Set Computing) technology gives companies power to keep tens of millions of policies
on a device with thousands of bytes of data per policy/client/agent. Analyisng a 1O-year
database is cost effective. Reviewing the database provides information on how many
clients have actually migrated not just how many policies have lapsed or surrendered.
Using database technology companies can get a comprehensive, performance, loyalty,
and lost opportunity.
b) Data Warehouse:-
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managing by profit levels with an integrated approach rather than by limiting losses. Data
mining can be used as a means to control costs and increase revenue resulting in
enormous earning for effective users.
The proposal forms may be scanned into an imaging system. Data may be extracted
for update to computer and for automated underwriting workflow may be implemented.
Mapping Insurers to meet different needs, such as identifying loss prone areas or
geographic claim analysis, can use Mapping technology. It helps the insurer to analyse
the extent of its network i.e. the insurer can determine whether it has too many or too few
agency force in a particular area.
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f) Call Centre Technology:-
Good customer service is a crucial element for gaining, maintaining and retaining
profitable customers. Call centre concept based on interactive voice response services
(IVRS) is gaining importance in this aspect. Video Linking A video linking facility
between two remote units of an insurance company or between an insurer and a broker
allows underwriters at one place and brokers at other unit to discuss risk inherent in a
proposal face to face.
g) Cat Models:-
Catastrophic models use data from the recent natural disasters that helps develop
more predictions of insurers’ property exposures in future disasters. Using this data
curious “what-if’ scenarios of probable maximum loss (PML) using the best estimate
available at an insurer’s exposures are tested. Finally an underwriting policy that limits
the company’s exposure to catastrophic losses is implemented. Intranet is the network
connecting different offices of the same business to permit the internal data within the
business.
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2.5 TECHNICAL CHALLENGES
A host of tech accompanies the task of insurance fraud and abuse detection. An
abusive solution to the problem requires a comprehensive approach enabled by a variety
of technologies that addresses these technical challenges head-on. Some of these design
issues include;
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f) Prioritization of suspects:-
In order to match work level to staffing constraints, which may be different for
different customers and may vary over time, a detection system must allow for
prioritization of suspects. Scoring models provide a rank ordering of all suspects so
that attention can be focused on those deemed most suspicious.
h) System Maintenance:-
The system performance must not deteriorate due to changing patterns of activity
overtime. Because neural network models are built from data and automatically learn
complex patterns within the data, they can be efficiently redeveloped. Indeed, as more
examples of abuse become known, model performance can be expected to improve
over time
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Chapter-3
3.1 INTRODUCTION
Cyberspace is a risky place. Companies conducting business over the internet are
exposed to a variety of new, unpredictable and serious exposures such as servers
crashing, computer viruses, destruction of data, emails disappearing and attack from
hackers for which there are few precedents in terms of risk management and even less
actual insurance coverage. Cyberspace presents unique challenges to risk managers for
several reasons; the foremost being that there is no Standard risk profile.
Essentially, the policy can fill the gaps in coverage that have opened up between standard
insurance policies due to the fact the way business is done has changed.
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a) Intellectual property infringements:-
Content providers who use content of others without permission can trigger these risks.
Errors and Omissions liability: these risks are typically triggered by the programmers,
web hosts & web-designers, who, through negligence in their work cause injury/damage
to a third party.
As e-commerce grows, these risks can be triggered by worldwide web sites, and trade
publishers who publish illegal content or content which may be constructed as libel.
c) Director’s liability:-
Directors and officers often face the risk of litigation due to numbers of factors, such as
consumer protection laws, securities related laws, and certain provisions in the corporate
laws that place additional responsibilities on directors.
d) Employee liability:-
These risks would arise from the breach of confidentiality and rights of privacy arising
out of confidential client information stored on a particular system or website. In
addition, employee can initiate sexual harassment charges from an employee due to
disturbing e-mail content.
e) Legal fees:-
Fees incurred for litigation arising out of various claims, such as intellectual property.
Many businesses on the internet mistakenly think their internet- related exposures are
covered by their existing policies.
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3.2 INTERNET & INTRANET
The policyholders will not be able to access the data in the intranet. Circulars meant
for internal circulation can be posted on the intranet & everybody will have immediate
access to it, however far away he may be located. In the intranet also, it is possible to
restrict some information to certain categories of persons, who will be identified through
passwords. Both internet & intranet enables users to do the following at any time (24
hours, 365 days)
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BENEFITS TO AGENTS:
The benefits to agents will be:-
He can receive all circulars & instructions issued by any office. All delays on
account of postal transmission, being forwarded from one level to another, dispatch
department absence of peons, wrong addresses, misplaced through oversight, lost in
transit etc., are avoided.
BENEFITS TO POLICYHOLDERS:
l) Prospects: Prospects can get benefit through the internet in the following ways-
They can get details of the various policies, the benefits there under, the premiums
payable etc.,
Prospects can get advice on the suitable insurance plan for themselves.
Policyholders can get information with regard to the status of the policy, the
premiums due, the bonuses attached, the surrender values or loans available,
revival possibilities, nearest office for any further transactions.
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3.3 INSURANCE AND ELECTRONIC COMMERCE -
E-INSURANCE
On a global basis, there is mad rush of companies willing to enable their business.
E-insurance is one of the growth areas in India. Enormous opportunities are being created
by the Internet’s new connectivity such as improving customer’s service, reducing cycle
time, becoming more cost effective, and selling goods, services, or information to an
expanded global customer base. As entire industries are being reshaped and rules for
competition are changing, enterprises need to rethink the strategic fundamentals of their
business in order to be successful.
Globally, insurance on the net has lagged behind other financial service products
such as banking and brokerage. Of the total online users only 5% used insurance service
online. This lag was due to lack of relevant and adequate content. Traditional insurers,
while leveraging on new information technologies, have been slow to utilize the Internet
as an alternative distribution channel. All the largest insurers have been focused on static
marketing presence online, encompassing product information, FAQ’s and quotes. Only a
few insurers have added the ability to submit applications online. This lack of
participation in the e-business revolution is seen across lines.
The insurance companies attribute two factors for the slow take off. First and
foremost, insurance is a product that is sold and not bought. The Internet is perceived to
be a buyer’s medium, with online customers able to search quickly and for the most
competitive prices and variety of products. Insurance is one product that cannot be easily
commoditized. The more personal the selling process, the greater the difficulty in using
the net as a medium for selling. Insurance is one product, which involves personalized
selling. The process of insurance sales requires a series of face-to-face interactions.
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exponential growth in the near future. The Gartner Group in a study conducted by them
says that in a year 25% of all customer contacts and enquiries for enterprises will come
via the internet, e-mail and online forms.
Banc assurance customer service, which has been almost exclusively done via the
telephone (96% of all transactions), will become increasingly e-mail based in the next
four years; decreasing telephone related service by 28%. In response to these trends in
customer preference, insurers are mobilizing their online sales and customer account
management capabilities. This move towards building Internet based business solutions
benefits the insured by providing greater flexibility, greater customization of information
and improved customer service for the insurance company. This drastically reduces the
costs involved. Similarly, by essentially outsourcing administrative and cost intensive
processes such as policy administration to customers, the cost of administration and
servicing the insurance policy also decreases sharply.
E-Insurance in India The intriguing question before all associated with the
insurance industry is that will it be possible for private companies or even public sector
monoliths to sell insurance online in India in the near future? Insurance companies will
probably have to wait for Internet penetration to increase and the still ambiguous e-
commerce rules to take concrete form. However, what is not debatable is that new private
entrants will change the rules of the game for the Indian insurance business, both in the
life and the non- life segment, unfolding opportunities for software engineers and
professional agents. To peep into the possibilities and opportunities emerging out of the
integration of insurance and information technology, various organizations have
organized seminars and conferences in the recent past to explore the possibilities of
selling insurance on the Net and gauge the opportunities for the growing Indian software
industry.
According to T. Ramanan of Assocham, life insurers were among the first to go online
with informative content and features like actuarial calculators. However, according to
him, they have been relatively slow to embrace online commerce, which currently makes
up about 1 per cent of the total term life market. Only 12 per cent of insurance companies
globally sell policies online. Experts expect the percentage of term life sold over the
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Internet to increase from I per cent to 15 per cent by 2003, which in monetary terms
works out to $21 billion. Although traditionally term life insurance has been sold through
independent agents, the big shift will become manifest sooner than later. And more
importantly Indians cannot watch from the sidelines as this paradigm shift in the
insurance sector takes place. In the non-life sector, automobile policies are popular over
the Internet. Premium income, points out the paper, is expected to rise to $18 billion from
about $1 billion currently.
The growth of global online insurance business augurs well for the Indian IT
sector. The exponential growth in the online insurance business will unfold significant
business opportunities for software companies/consultants. The opportunities that rise out
of this will be both global and local, because new entrants will have to either fine tune or
prepare customized packages for the Indian market. Online insurance will also help
companies reduce costs and keep premiums low, a prerequisite in a price sensitive market
like India. The government, however, will have to address problems relating to
bandwidth on an urgent basis to make online insurance a reality in India. Other major
challenges to face Indian insurers will be to design and develop strategies for delivering
services to well segmented customers.
The third challenge lies in developing the right combination of customer segments
and applicable distribution channel strategies. Most Web sites offer contact numbers of
their branch officers where we can get further details of the products on offer. The Agent
locator feature, available on maxnewyorklife.com, iciciprulife.com and on
bimaonline.com help one locate an insurance agent most accessible to you based on a
search facility. One would expect downloadable proposal forms on insurance web sites,
but these are missing in most cases. Only Iicindia.com seems to offer downloadable
proposal and claim forms for a few of the schemes.
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3.4 BENEFITS OF ELECTRONIC INSURANCE
E-insurance provides multiple benefits to the insurer and the existing and prospective
insured:
h) Reduced cost per transaction 24x7 availability i.e. round the clock availability of
information
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3.5 MAJOR FACTOR AFFECTING E-INSURANCE
a) Growth of net:-
It is estimated that India would have about 150 million net users by 2010. These
figures represent a huge buying potential.
b) Competition pressures:-
Insurance companies because of competitive pressures would be driven into Internet
rather than a clear ROT justification.
c) Customer:-
The availability of net-based services will be a huge factor for customer retention.
d) Cross sells:-
When linked with other financial products, a portfolio approach to investment,
savings and risk coverage will increase cross sells and customer loyalty and retention.
e) Costs:-
In the beginning c-insurance will be a cost factor rather than a profit driver, but in the
long run it will be a cost reducing factor.
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3.6 E-INSURANCE BUSINESS CHALLENGES
Electronic insurance will not only provide many benefits but will also pose business and
technological changes.
I) Business Challenges
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closer to the insurance contract, by removing layers of inefficiencies. Consumers will
also obtain price comparisons for relatively generic contracts, such as life insurance
and rates for a standard set of auto insurance coverage for given vehicle and driver
characteristics. Consumers also could have access to internal records to see where
their claims are in terms of payment, when their next annuity payment is due, and
how their mutual fund is performing. This can be done without calling a burdensome
voicemail system, being put on hold, or finding a person who can give them the
desired information efficiently.
One of the most prominent challenges of e-commerce is security. It is very evident that
many users are reluctant to do business on the Internet due to security reasons:
a) Database Security:-
The business database security is utmost important. This has to be monitored by
security of the web server and web access. Web Server Security: Security policies
should be defined as who is allowed access, nature of the access and who authorizes
such access, etc.
b) Password sniffing:-
Protection against password sniffing is to avoid using plain text user names and
reusable passwords.
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c) Network Scanning Programs:-
Automated tools should be used to scan your network. These tools check for well-
known security related bugs in network programs such as send mail and FTPD.
d) Physical Security:-
One can ensure physical security by having an alarm system that calls the police,
having a key-lock on the computer power supply.
f) Transmission Security:-
Encryption is a key technology to ensure transaction security.
g) Privacy:-
Privacy is likely to be a growing concern as internet-based communications and
commerce increase, Designers and operators of web sites who disregard the privacy
of users do so at their own peril.
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Chapter-4
4.1 INTRODUCTION
Break free of paper-based processes Insurance companies tell us that they are hindered by
slow, paper-based processes. Agents waste time and money shuffling forms, instead of
closing business and prospecting for new customers. Back-office burdens, such as re-
keying data and handling huge volumes of mail, further increase costs. As a result,
customers are put off by frequent poor service, causing them to look for other alternatives
or abandon the process altogether. The challenge is to find a way to streamline the
application process—driving down costs while helping to drive additional revenues and
profits—but it hasn’t been easy. Restricted by system silos and patchwork processes.
If your company is like most carriers, you have legacy system silos and patchwork
processes for various product lines. This lack of integration creates islands of
information, which necessitates extensive manual handling and staff paperwork. The
resulting inefficiencies dramatically impact your organization’s ability to put the
customer first and efficiently meet the needs of policyholders and agents.
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In addition, growing regulatory requirements add to the burdens that your
headquarters faces, forcing you to update systems and disclosures to remain in
compliance. All this leads to slower service, unhappy customers, and dissatisfied agents
and brokers—who just may decide to take their business elsewhere.
Adobe can help remedy the situation. The Adobe solution for insurance application
helps you improve service while reducing costs, meeting policyholder needs, and
increasing agent loyalty—so you can dose more business. Get faster, more accurate
processing The Adobe Intelligent Document Platform accommodates both paper forms
and electronic documents, simplifying the collection and sharing of information, and
minimizing time-cons tuning back-office tasks.
Agents, customers, and call center representatives need to enter data only once.
Renewal forms and other documents can be automatically populated, dramatically
reducing time-consuming and error-prone re-keying.
Adobe Document Services simplify underwriting and risk appraisal by allowing
ratings and not to be made right on the form for review by all parties—without
altering the original document.
Electronic distribution eliminates postal delays and costs, and improves response
times by eliminating back-office handling.
Agents and brokers can present intelligent forms to clients—in an offline mode—
by using the free Adobe Reader.
When wet signatures are required, you can print forms out and then easily revert
back to an intelligent, automated process while maintaining full integrity of the
original form data. Build data validation and calculations into all application
processes.
Support for extensible Markup Language (XML) and ACORD XML standards helps
efficiently integrate this information into your enterprise applications. Adobe Document
Services also offer a flexible front end, so you can adapt easily to the latest regulatory
policies, to minimize the business disruption and expense of compliance.
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4.2 Adobe PDF:
This efficient workflow translates into to faster reviews and underwriting, and
improved service. The Adobe solution for insurance application improves the quality of
your service to agents, brokers, and customers—making it easier for agents to sell more
policies, decreasing abandonment rates, and enhancing your profitability.
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4.3 MICROSOFT AND THE INSURANCE INDUSTRY
For many drivers, the seemingly endless round of phone message and paper
work that follow traffic accident can make the job of resolving on insurance claim feel as
damaging as the accident itself. For insurance carriers auto claims processing which
involves handling estimates adjustments repairs billing, and more is no less time-
consuming, expensive, and frustrating.
Today, innovative technologies from Microsoft are transforming from the way
auto insurance claims are processed. Based on the power of the Microsoft.NET
framework these technologies open the door of integrated IT system that link programs
and applications built of any platform and written in any language. Streamlining the flow
of data and bringing new levels of efficiency to the business of claim processing. Process
claims is a leading software provider to the insurance industry, offering a broad range of
property and casualty solution that span heavy equipment, commercial, personal and
specialty lines. A Microsoft certified partner, process claims deliver solutions that
automate solution that automate communication and information flow, and yield rapid
return on investment. By harnessing the power of Microsoft .
NET framework and its own data transformation technology and industry
expertise, process claim solutions provide data transformation an d mining, business
intelligence, work flow management, assignment automation, appraisal management and
trading partner integration. Last year, process claims facilitated settlement of $4 billion in
claims. The issue of data integration is critical for all parties involved in resolving auto
insurance claims. In addition to insurance companies there are companies that depend on
data to provide rental car services, supply parts, facilitate salvage processing, determine
vehicle valuation, and more. Process claims’ end to end material damage management
systems provide the vital link between all of these parties.
Utilizing Microsoft visual studio, .NET, XML and web service programmable
application components that can be accessed over the internet with standard web
protocols-process claims enables its client to conduct business with greater speed and
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efficiency. Typically, when a driver reports an accident, the carrier assigns an adjuster or
refers the driver to an authorized body shop. Because process claims uses XML it can
take information from any claim system and instantly route the assignment to the most
appropriate appraiser. After receiving the claim the appraiser downloads is it to an
estimating application, writes the estimates, adds digital photos, and sends the package
back to the carrier through the process claims browser-based application suite. The ability
to utilize XML and web services has established process claims as a market place leader.
Not only does the solution streamline claims processes. It also extent and enhances the
value of existing legacy system functionality through seamless integration with outside
services. And because legacy system can access this new functionality transparently,
Training and support costs are minimal.
Process claims’ claims port system focus on areas of material damage to reduce
loss-adjustment expenses, increases efficiencies, and improve customer satisfaction, and
they are configured to meet the specific business requirements of individual insures.
Today, innovators are taking advantage of technologies like this to automate business
processes and transform insurance claim processing.
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Chapter-5
ICICI Prudential
5.1 OVERVIEW
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and Prudential plc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was amongst the
first private sector insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority (IRDA).
ICICI Prudential Life's capital stands at Rs. 4,793 crore (as of June 30, 2012) with ICICI
Bank and Prudential plc holding 74% and 26% stake respectively. For the period April 1,
2012 to June 30, 2012, the company has garnered total premium of Rs 2,385 crore and
has underwritten over 13 million policies since inception. The company has assets held
over Rs. 70,000 crore as on June 30, 2012.
For the past decade, ICICI Prudential Life Insurance has maintained its dominant position
(on new business retail weighted basis) amongst private life insurers in the country, with
a wide range of flexible products that meet the needs of the Indian customer at every step
in life.
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5.2 ICICI PRUDENTIAL LIFE INSURANCE
India's foremost financial services companies, and prudential plc, a leading international
financial services group headquartered in the United Kingdom. While ICICI retains 74% stake in
the joint venture, Prudential plc has the remaining 26% stake. ICICI Prudential began its
operations in December 2000. Today, this company has over 1,900 branches (inclusive of
1,074 micro-offices), over 210,000 advisors and 6 branch assurance partners. ICICI
Prudential Life Insurance Company is the first life insurer in India that received a National
Insurer Financial Strength rating of AAA (Ind) from Fitch
Ratings. ICICI Prudential has been voted as India's Most Trusted Private Life Insurer for three
consecutive years. This company provides various insurance plans that have been designed for
different individuals, as every individual has different insurance needs. It celebrated its 10th
anniversary on 12th December 2010. Given below is a list of plans provided by ICICI Prudential
Life Insurance Company:
All ULIPs
Unit linked insurance plans (ULIPs) are a category of goal-based financial solutions that
combine the safety of life insurance protection and long term wealth creation
opportunities. In ULIPs, a part of the premium goes towards providing you with life
cover while the remaining portion is invested in fund(s) which, in turn, are invested in
stocks or bonds.
Retirement
Wealth
Child
Health
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5.3 LIFE INSURANCE PLANS
Term Plans
Term insurance is the simplest and most fundamental insurance product available at
extremely affordable prices. In this type of a policy, an individual pays a fixed amount of
money periodically and in the unfortunate event of death of the policyholder, the entire
amount paid, along with some other benefits and interest, is paid back to the deceased's
family.
Wealth Plans
Wealth insurance plans are essentially long term savings plans which are designed to help
you save enough for your long term goals, like owning a house or a car etc, along with
providing you the benefit of life cover and protection for your family.
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ICICI Pru Save ’n’ Protect
ICICI Pru Cash Bak
Child Plans
Regardless of the rising cost of education in modern times, a parent never compromises
on the expenditure that goes into his/her child's bright career. A saving's plan that is
designed to provide money at key educational milestones and take care of your loved
ones future even if you are not around, is a wise decision to make. In this plan, you pay
premium periodically, or in lump sum, and during the key educational milestones of your
child, you can withdraw the money partially.
Health Plans
predicting unfortunate medical emergencies is difficult. Bearing the expenses of the
costly treatment is not at all easy and therefore, ICICI Prudential has come up with health
insurance plans that insure you and your family against expenses arising due to medical
emergencies and uncertainties such as hospitalizations or onset of critical illnesses.
Hospitalization Plans
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Riders
ICICI Prudential gives you the freedom to form your very own comprehensive insurance
policy by adding the rider benefits to the basic life insurance policy. This increases the
scope of your policy, at a nominal cost.
Retirement Plans
financial independence at all times is important but its importance is the most in the post-
retirement phase of life. After being self-dependant for a lifetime, the idea of depending
upon your children can be quite putting off. Retirement plans from ICICI Prudential Life
Insurance, ensure that you have enough flexibility to choose your retirement date and the
manner in which you receive the pension.
Group Plans
Group Insurance Plans from ICICI Prudential enable the employer to effortlessly provide
his/her employees with both, savings and security, so they can pass on the benefits to
their loved ones.
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Retirement Solution
Protection Solution
Annuity Solutions
Group Term Insurance Plans
Group Term in lieu of EDLI Scheme
Credit Assure Utility
Rural Plans
ICICI Prudential's rural business initiative has covered more than 2.5 million lives across
as many as 16 states in India. The plans offer Life cover, low and affordable premiums
and hassle free procedure.
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5.4 RULES AND RESPONSIBILITIES
As an advisor, you would be the primary connect between the customers and ICICI
Prudential. Your main function would be to solicit life insurance business on behalf of
the company. At the same time, you need to gain trust of the prospect and advise him
suitably, keeping his insurance needs in mind. Thus as an advisor you would be required
to play the unique role, whereby, you would be trusted by the customer as well as Insurer.
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5.5 WELCOME TO PRUDENTIAL TECHNOLOGIES
Vision
Prudential tech recognizes that human capital is emerging as the biggest asset in recent
times. Prudential tech is envisaging specific interest in talent and Learning Management
System (LMS) to efficiently administer and manage numerous regulatory training and
qualification requirement apart from providing platform for business transformation.
Goals
Identify and train the bright talents, set them up for success by placing them in the best
companies. Ignite growth of our clients by providing the best talent and technology
expertise.
Clients
We value our client’s time and work committed for every assignment. No matter how
complex your requirements may be, with prudential tech you can be assured of reliable
service and exceptionally qualified candidates.
Our clients include many of the elite privately held IT companies in the world. Our goal
is to provide excellent service to clients and candidates through uncompromising quality
and commitment on delivery. The fact that a majority of our clients have been with us
since our inception is testimony to their trust in us.
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Mr. KALYAN PRASATH- HEAD – INFORMATION TECHNOLGY.
Kalyan holds a Diploma in Business Management from ICFAI and Post Graduate
Diploma in Systems Management from NIIT. He has 23 years of experience across
industries like IT, manufacturing and banking & financial services. At ICICI Prudential
AMC, his responsibilities include overseeing the overall technology function i.e. business
application, information security and IT infrastructure & projects thereby contributing to
business excellence. Kalyan has a strong interest and flair for astrology.
Kalyan Prasath, VP, Prudential ICICI, said, “Within a year of first going live, registration
on our online transaction website has grown from just 2,000 users to a current 11,000
plus audience. That’s a significant achievement in itself. What’s more, the investments
through the website have touched the Rs 2 crore mark. A significant number of NRI’s
have registered on the website, and we receive traffic from the Middle East as well.”
“We purchased the entire web infrastructure for about Rs 6-7 lakh. The TCO has been
realized within a year of operation. The online model has become popular due to the fact
that it offers our customers the convenience of remotely logging on from their residence,
and make complete transactions online.” said Prasath.
“Registered users can simply select any of the six banks with which they have a valid net
banking account, and make secure transactions online. Payment is authorized online, and
the system directly credits the amount,” explained Prasath.
Prasath added, “KPMG has established concrete security guidelines and set a robust
framework for our organization by conducting extensive audits.
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Annexure-I
FINDINGS ON QUESTIONAIRE
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CONCLUSION
The question now facing insurance companies is no longer if they should take
advantage of the internet, but now should they do it. Should you adapt your existing
products or create internet specific insurance products and brands? Do you focus your
efforts on distribution or service? Thus the insurance services without technology will be
like tea without sugar. Therefore both need to be integrated in order to provide quality
service & also to tap the insurance market.
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BIBLIOGRAPHY
Websites:
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QUESTIONAIRE
Name :-
Branch:-
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2) What are the kinds of technology provided to client to get trust on icici
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5) In which countries headquarter of ICICI prudential located?
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