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APPLICATION OF INFORMATION TECHNOLOGY IN INSURANCE SECTOR There is a evolutionary change in the technology that has revolutionized the entire

insurance sector. Insurance industry is a data-rich industry, and thus, there is a need to use the data for trend analysis and personalization. With increased competition among insurers, service has become a key issue. Moreover, customers are getting increasingly sophisticated and tech-savvy. People today dont want to accept the current value propositions, they want personalized interactions and they look for more and more features and add ones and better service The insurance companies today must meet the need of the hour for more and more personalized approach for handling the customer. Today managing the customer intelligently is very critical for the insurer especially in the very competitive environment. Companies need to apply different set of rules and treatment strategies to different customer segments. However, to personalize interactions, insurers are required to capture customer information in an integrated system. With the explosion of Website and greater access to direct product or policy information, there is a need to developing better techniques to give customers a truly personalized experience. Personalization helps organizations to reach their customers with more impact and to generate new revenue through cross selling and up selling activities. To ensure that the customers are receiving personalized information, many organizations are incorporating knowledge databaserepositories of content that typically include a search engine and lets the customers locate the all document and information related to their queries of request for services. Customers can hereby use the knowledge database to mange their products or the company information and invoices, claim records, and histories of the service inquiry. These products also may be able to learn from the customers previous knowledge database and to use their information when determining the relevance to the customers search request. PRESENT SCENARIO OF INSURANCE INDUSTRY India with about 200 million middle class household shows a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in the market. Indians, have always seen life insurance as a tax saving device, are now suddenly turning to the private sector that are providing them new products and variety for their choice. Consumers remain the most important centre of the insurance sector. After the entry of the foreign players the industry is seeing a lot of competition and thus improvement of the customer service in the industry. Computerisation of operations and updating of technology has become imperative in the current scenario. Foreign players are bringing in international best practices in service through use of latest technologies

INTRODUCTION1.1 LIFE INSURANCE IN INDIA

With such a large population and the untapped market area of this populationInsurance happens to be a very big opportunity in India. Today it stands as a business growing atthe rate of 15-20 per cent annually. Together with banking services, it adds about 7 per cent tothe countrys GDP .In spite of all this growth the statistics of the penetration of he insurance inthe country is very poor. Nearly 80% of Indian populations are without Life insurance cover andthe Health insurance. This is an indicator that growth potential for the insurance sector isimmense in India. It was due to this immense growth that the regulations were introduced in theinsurance sector and in continuation Malhotra Committee was constituted by the governmentin 1993 to examine the various aspects of the industry. The key element of the reform processwas Participation of overseas insurance companies with 26% capital. Creating a more efficientand competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many sea changes .Thecompetition LIC started facing from these companies were threatening to the existence of LIC.Since the liberalization of the industry the insurance industry has never looked back and todaystand as the one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of newdistribution techniques and the IT tools has increased the scope of the industry in the longer run. Life Insurance Corporation of India (LIC) is a Government of India enterprise, and is said to be the largest life insurance company and also the largest investor of the country. LIC was founded on the 1st of September, 1956 after the Parliament of India passed the Life Insurance Corporation Act on June 19th, 1956. The objective for this corporation was to spread life insurance more widely, esp. in the rural areas, and reach every insurable person in the country. In tandem with this goal, LIC provides life insurance services at affordable prices to both the rural (and the socially/financially backward segments of the Indian society) and the urban segments. It encourages the lower income group people to save their money by offering attractive savings features along with the regular insurance policies. LIC is headquartered in Mumbai and along with this corporate office, it also has 8 zonal offices, 109 divisional offices, 2048 branch offices and 992 satellite offices located in different towns and cities of India. LIC has touched millions of lives for the past 55 years.

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