CHAPTER 1- INTRODUCTION OF INSURANCE

1.1: MEANING OF INSURANCE

Insurance provides financial protection against a loss arising out of happening of
an uncertain event. A person can avail this protection by paying premium to an insurance
company.
A pool is created through contributions made by persons seeking to protect
themselves from common risk. Premium is collected by insurance companies which also
act as trustee to the pool. Any loss to the insured in case of happening of an uncertain
event is paid out of this pool.
Insurance works on the basic principle of risk-sharing. A great advantage of
insurance is that it spreads the risk of a few people over a large group of people exposed
to risk of similar type.

DEFINITIONS
Insurance is a cooperative form of distributing a certain risk over a group of
persons who are exposed to it. Ghosh and Agarwal
Insurance is a contract in which a sum of money is paid to the assured as
consideration of insurers incurring the risk of paying a large sum upon a given
contingency. Justice Tindall
Insurance has been defined as a plan by which large numbers of people associate
themselves, to shoulders of all, risks attach to individuals. Magee D.H.

CHARACTERISTICS OF INSURANCE
It is a contract for compensating losses.
Premium is charged for Insurance Contract.
The payment of Insured as per terms of agreement in the event of loss. It is a contract of
good faith.

 It is a contract for mutual benefit.

It is a future contract for compensating losses.
It is an instrument of distributing the loss of few among many.
The occurrence of the loss must be accidental.
Insurance must be consistent with public policy.

1.2: INFORMATION TECHNOLOGY

MEANING
Information

technology

(IT)

is

the

application

of

computers

and

telecommunications equipment to store, retrieve, transmit and manipulate data, often in

the context of a business or other enterprise. The term is commonly used as a synonym
for computers and computer networks, but it also encompasses other information
distribution technologies such as television and telephones. Several industries are
associated with information technology, such as computer hardware, software,
electronics, semiconductors, interne, telecom equipment, e-commerce and computer
services.
In a business context, the Information Technology Association of America has
defined information technology as "the study, design, development, application,
implementation, support or management of computer-based information systems". The
responsibilities of those working in the field include network administration, software
development and installation, and the planning and management of an organization's
technology life cycle, by which hardware and software is maintained, upgraded and
replaced.
Humans have been storing, retrieving, manipulating and communicating
information since the Sumerians in Mesopotamia developed writing in about 3000 BC,
but the term information technology in its modern sense first appeared in a 1958 article
published in the Harvard Business Review; authors Harold J. Leavitt and Thomas L.

Whistler commented that "the new technology does not yet have a single established
name. We shall call it information technology (IT).

1.3 HOW INSURANCE WORKS?

The concept behind insurance is that a group of people exposed to similar risk
come together and make contributions towards formation of a pool of funds. In case a
person actually suffers a loss on account of such risk, he is compensated out of the same
pool of funds. Contribution to the pool is made by a group of people sharing common
risks and collected by the insurance companies in the form of premiums.
Stands for "Information Technology," and is pronounced "I.T." It refers to
anything related to computing technology, such as networking, hardware, software, the
Internet, or the people that work with these technologies. Many companies now have IT
departments for managing the computers, networks, and other technical areas of their
businesses. IT jobs include computer programming, network administration, computer
engineering, Web development, technical support, and many other related occupations.
Since we live in the "information age," information technology has become a part of our
everyday lives. That means the term "IT," already highly overused, is here to stay. (4)

1.4: History of computer technology

Devices have been used to aid computation for thousands of years, probably
initially in the form of a tally stick. The Anti kythera mechanism, dating from about the
beginning of the first century BC, is generally considered to be the earliest known
mechanical analog computer; it is also the earliest known geared mechanism.
Comparable geared devices did not emerge in Europe until the 16th century, and it was
not until 1645 that the first mechanical calculator capable of performing the four basic
arithmetical operations was developed.
Electronic computers, using either relays or valves, began to appear in the early
1940s. The electromechanical Zuse Z3, completed in 1941, was the world's first
programmable computer, and by modern standards one of the first machines that could be
considered a complete computing machine. Colossus, developed during the Second

World War to decrypt German messages was the first electronic digital computer.
Although it was programmable, it was not general-purpose, being designed to perform
only a single task. It also lacked the ability to store its program in memory; programming
was carried out using plugs and switches to alter the internal wiring. The first
recognizably modern electronic digital stored-program computer was the Manchester
Small-Scale Experimental Machine (SSEM), which ran its first program on 21 June 1948.
The development of transistors in the late 1940s at Bell Laboratories allowed a
new generation of computers to be designed with greatly reduced power consumption.
The first commercially available stored-program computer, the Ferranti Mark I, contained
4050 valves and had a power consumption of 25 kilowatts. By comparison the first
transistorized computer, developed at the University of Manchester and operational by
November 1953, consumed only 150 watts in its final version.

Chapter 2

ROLE

OF

INFORMATION

TECHNOLOGY

IN

INSURANCE INDUSTRY
The insurance industry in India has gone through thrown a revolutionary change
after this sector was open to the private sector in 1999 which brought professional
expertise and management

skills to procure insurance business. Again, since

liberalization and globalization many foreign

insurance companies have started

operations in India after entering into joint veture with Indian companies. Insurers are
beginning to feel the heat of the competition already and every company including the
monolith--the Life Insurance co-operation, has had to sit up and think hard on strategies
to take the competition head on.
Among all, one factor that has brought sweeping change in the industry in the
manner it will work henceforth is information technology. It is perhaps the most
significant development in the insurance sector today. Companies are redefining the way
business was conducted so far- Traditional methods will have to be done away with and
absorption of newer technologies will pave the way for improved efficiency and reduce
costs. More transparency in operations and flexibility to change according to innovations
in technology are the key factor for success in this industry.

The role played by the information technology can be best explained in

the following manner:

Easier Information Accessibility:

The Internet has ushered in a new wave of information accessibility. And hence.

The internet medium has gained incredible importance. Almost every insurer worth his
salt has made his presence on the internet. Moreover, it has eased the time-consuming
procedure of information sourcing. Other than providing information on policies the
internet has also enabled making premium payment and selling insurance products
online. The development of e-commerce and m-commerce has emerged as advanced
distribution channels virtually turning companies into paperless organizations.

Electronic Data:
Knowledge management, that was unheard of before, has today converted loads
of tiles that were a massive source of raw data into electronic form. This database can
help segregate information on the basis of buying habits, age group, and purchasing
power of a vast majority, proving to be a mass source of available information for
determining the investment culture of individuals. Such information can help devise
specific tailor made insurance products too. Today information is made available at your
fingertips. Files have given way to monitors and mousse and all one needs to do is punch
a few keys and voila every piece of information you need is right before you
Comparison Shopping:
Earlier the insurance agent in Is inimitable style mobilized a few benefits of
policies and most often the prospective customer ended up buying the policy the agent
recommended. Today the customer can choose between the range of insurance product of
various companies, suitable to his lifestyles and needs. He is in a position to compare
between the policies of various companies analyze, work out calculations, demand more
information than whatever he has been provided with and the insurance companies will
only be glad to serve him. Improved service, innovative customer friendly products,
affordable covers, reduction in premium, improved quality were unimaginable a few
years ago. Sites such as www.policybazaar.com provide online comparisons between
various insurance policies of different insurers, and helps in providing the best quotes for
premiums to be paid.
Advanced Technology:
From the customers perspective, all this and more would be possible from the
comforts of his home, resulting in saving of valuable time, elimination of middlemen and
in the process establishing direct contact with the insurer. Apart from the internet, web
chat, wireless, voice response unit and even intelligent character recognition technologies
are expected to come in soon.
Newer Channels of Distribution:

In the current scenario the insurance distribution channels have gone through a
sea change. Retailing of insurance products-a concept never heard before, has come into
existence. Intermediaries such as brokers, bancassurance, and corporate agents will play a
major role in distribution. And an Insurance agent is no more the 'sole information
disseminating authority' today unlike yesteryears, thanks to technology.
Importance of the Net:
Of late there has been a steady increase in the number of internet users and the net
has come up to be a dynamic marketing medium. Realizing the enormous potential
cyberspace marketing holds , companies now devise advertising budgets accordingly.
Times are changing and insurance agents and development officers (sales managers) have
become computer survey.
Packaged Software Solutions:
Packaged software solutions for insurance agents and development officers have
become a run-away success. Premium calculations, future projections, proposals etc. for
clients need not be a hard work anymore. Packaged software products are extensively
used for presentations, proposal follow ups, policy services, client services, commission
tracking, underwriting, task management etc.
Technology in Rural Areas:
Technology needs to penetrate the rural areas too for it to be successful. Though
an effort in this regard has already begun, insurers in order to make inroads in the rural
areas need to bring about awareness among the masses by educating the rural folk on the
benefits and necessity of insurance. It may take some time to educate the rural folk and
also bring about a change in the traditional mindset. With innovative technology every
communication whatsoever the customer has with the insurance company would be
through the interne soon. The advent of digital signature would be one step ahead-to
happen shortly. All this has changed the very profile of the customer. And enabling such
efficiency is what insurance companies need to get set for. In the face of accelerating
changes, insurance companies need to rework their strategies, do a rethink on core

competencies, customer relationship management, facilitate distribution channels, settling

claims, provide value additions etc. In this era only those companies, which keep abreast
of the changing technology and utilize them to the maximum extent possible will survive
and succeed.

2.1: TECHNOLOGY IN INSURANCE

Technology in insurance has changed the way the entire industry operates today.
No longer do the load of the paper works and manual labor hamper the process or leave
scope for errors. As the awareness and demand for various insurance have raised so have
the complexities of the business itself. Now there are policies for personal as well as
professional safety, for life, non life health to a wide range of product insurance. On top
of all this there has been globalization. Leading insurance brands have all gone global
with their operations trading across countries and across the different strata of societies
and this is where insurance software systems have come in to streamline the volume of
work and deliver quality services.
The introduction of technology in insurance has been a boon to the industry and
clients alike. While companies can better manage their data, agents can perform better
services and the end customers can expect better coverage as well as faster claims
processes. From the timing of the application to the final claims every segment has now
gone digital with electronic paperwork reducing the scope for delays and errors. Specific
software like the insurance billing software, automated underwritings systems and claims
management software take care of the individual aspect of the business. Applications are
reviewed faster, payment records are instantly updated, automated reminders helps keep
clients informed about their upcoming premiums seamlessly. All information is
constantly updated and stored in a master database for all departments to refer to
whenever needed.
Technology in insurance has also made the insurance industry go green. It has
drastically cut down the amount of precious paper that would be otherwise used to
manage and store all the data. With the insurance software systems and their multifarious
applications, minimal documentation is now done in hard copies making them

environment friendly solutions. And lesser documentation means that there is less manual
labor involved. This has two fold benefits. Now there is less chances of errors in the data
processing and services, and at the same manual labor which is expensive can be utilized
in other more important areas of customer support and service.

CHAPTER: 3 THE USES OF COMPUTERS IN INSURANCE

Record-Keeping

Computers provide insurance agents and their staff members with a convenient
way to store customer records. Their ability to encrypt data and store it in a database lets
the companies keep client records strictly confidential. The days of needing stacks of file
cabinets for storing information have long since passed. Computers save space and also
make data available to agents and underwriters with the touch of a button.
Providing Quotes
Because of the instantaneous speed at which computers provide information to the
insurance agent, agents can provide quotes for various products to clients or potential
clients upon request. Computer programs used by insurance companies provide potential
clients with instant information regarding what kind of policy the client is purchasing and
how much the policy will cost. Because of the needs of clients to often meet with agents
at times convenient for the client's schedule, insurance agents may utilize laptop
computers to access client information, print off paperwork and provide instant quotes.
Assessing Risk
The insurance industry relies heavily upon actuarial science in order to assess risk
that clients or potential clients may present to the company. Insurance companies use
computers to conduct. Extensive research to produce computer programs that assess risk
automatically. These dynamic Computer programs take into account various risks that a
potential client may cause for the insurance company. The insurance company provides
clients with quotes for policies based on this risk assessment.
Underwriting
Insurance underwriting also depends heavily upon computers in order to create
efficiency within the industry. Even though a client my receive a quote from an agent,
written policies go through underwriting process whereby a professional underwriter
determines whether or not the policy can be written based upon risk assessment.
Underwriting often proves to be the most important with life and health insurance
policies. Computers help automate this process--using complex databases and formulas--

so that underwriters need not engage in guesswork or make value judgments on their
own.
Social Networking
Social networks and media strategies are used at key points in the value chain
Social networking sites and technologies have enjoyed significant growth in recent years,
attracting more people across a wide range of interests. Facebook has more than 500
million users and its 30-and-older demographic is growing at double-digits. Twitter has
six million active users, while Flickr hosts more than five billion photos. People of all
ages, ethnicities, income levels and political views use social networks.
Such sites have changed consumer expectations, as people now generally expect
the organizations with which they do business to interact onlineanswering questions,
solving problems, and providing feedback on products and services. It also illustrates the
potential impact of social networking on the major areas of the insurance industry value
chain: product development, marketing and communications, sales, underwriting,
customer support and claims.
Some in the insurance industry are moving to the next step in social media
engaging their followers in "challenges." Much like Frito-Lay uses Facebook and
YouTube every year to challenge users to create a new Doritos commercial to air during
the Super Bowl, insurer Aflac's "10-Second Challenge" commercial competition
generated more than 180 video submissions, which were watched more than 250,000
times on Facebook and on aflac.com.

CHAPTER: 4 ROLE OF INTERNET IN INSURANCE

DISTRIBUTION
The internet: emerging channel for insurance distribution. The developments in
Information Technology (IT) are working wonders in all fields of activity. It has become
possible to send and receive information almost instantaneously. If circulars do not reach
the agents on time or doubts are not cleared quickly, or the agent does not have details of
new plans announced in the press, the agent may have faced awkward situations with the
prospects. These problems can be totally avoided with the use of IT. Insurers traditionally,
have been quick to adapt latest advances in technology. This is happening in the areas of
IT as well. The extent of IT application will vary from insurer to insurer.
The Internet is a global system of interconnected computer networks that use the
standardized Internet Protocol Suite (TCP/IP). It is a network of networks that consists of
millions of private and public academic, business, and government networks of local to
global scope that are linked by copper wires, fiber-optic cables, wireless connections, and
other technologies.
The Internet carries a vast array of information resources and services, most
notably, the inter-linked hypertext documents of the World Wide Web (WWW) and the
infrastructure to support electronic mail, in addition to popular services such as online
chat, file transfer and file sharing, online gaming, and Voice over Internet Protocol (VoIP)
person-to-person communication via voice and video. The internet is thus a worldwide
system, accessible through computers. Information travels through the internet at
incredible speeds. It cuts across national and international boundaries. Information posted
on a `website' is available to anybody from anywhere in the globe, free of cost, unless the
access is protected.
While the internet allows access to anybody from anywhere, the Intranet is an inhouse network, working on the same principle. The difference is similar to that between a
national newspaper and in-house news-magazine, which is for private circulation. If an
insurer has an intranet system, the information in the Intranet will be available only to its
offices and personnel.

All the information is channeled to a central server usually located at the head
office and they are transferred to respective computer terminals all inter- connected
through wide area network(WAN). The internal information is available to the employees
through the computers connected through local area network (LAN).The policyholders
will not be able to access the data in the Intranet. Circulars meant for internal circulation
can be posted on the Intranet, and everyone will have immediate access to it, whatever be
the distance where the person is located.
In the Intranet also, it is possible to restrict some information to certain categories
of persons, who will be identified through passwords. The interne is the medium that is
the most democratic, since it is available to all, and displays no discrimination. One can
send and receive mails, called as e-mails, through unique "user id" which is his address in
the worldwide net and a unique password too that needs to remain confidential. One can
search through search engines such as Google, yahoo, and Microsoft, and retrieve and
download data, files, images; play games, join social networking sites, find professional
jobs, post messages through blogs, have a corporate identity through websites, send mass
business mailers, join chat rooms and discuss ideas; make friends, get married through
online marriage websites; communicate with friends through social networking sites such
as Orkut, Facebook, MySpace, Tweeter and many others; read online newspapers from
any part of the globe, watch videos, connect with family and friends through a web
camera connected to a computer while sitting across the continent, buy and sell online (ecommerce)etc.
Thus, in terms of benefits to the insurance field; the agent can sit in his office and
sent relevant information, product brochures, and sales illustration to the prospective
client; and clarify queries on the phone. Even policy application forms are available to
the client through free downloads from the company's official website. It means savings
of time and money for the agent or other distributors.

4.1:

COMMITMMENTARIES

RELATED

TO

"THE

INTERNET"
As the technology and culture of the Internet has matured over the years, so too
has the insurance industry's use of this pervasive medium. The Internet was first viewed
by insurers as a technology toy of which information technology (IT) departments might
soon grow tired. In the U.S, by the mid 1990s, carriers realized the need to at least
leverage the advertising, marketing, and information posting potential of the technology.
And while the industry was being lambasted by various media pundits at the height of the
"e-bubble" in 2001, the eventual wisdom of their pragmatic approach to this technology
was actively viewed as naivet by some and as borderline stupidity by others. Integrating
a paradigm shift In retrospect, the insurance industry's use of the Internet followed a
respectable curve considering the risk averse nature of the business. The adoption rate
and acceptance of this paradigm shifting technology came from deep knowledge of the
complexity of insurance itself. IT managers and executives could not simply pursue the
possibilities of Internet technology and ignore the practical realities of their business
processes. The external voices calling for accelerated adoption and the "end of insurance
as we know it" were in most cases unaware of all but the most visible aspects of the
process.
The efforts of technology insurance buying and renewal decisions as consumers
and businesses are pressed to "do more with less, "which, as often as not, has to do with
time constraints in addition to money.
The use of intranets that make use of Web services for internal workflows can
provide the flexibility that successful insurers will need to compete in the near future.
Core systems need to be re-engineered to expose their functionality and processing as
services to be called when needed by operations, customer facing applications, or analytic
functions.
The most discussed and anticipated channel is the Internet-led channel. The
widespread diffusion of the Internet has created an explosion in the growth of electronic
channels, including direct channels (that is, individual company web sites), electronic

markets, or "electronic intermediaries over which multiple buyers and sellers do

business", and other cyber mediaries.

CHAPTER: 5 INSURANCE SOFTWARE

The online Insurance Management System Software solution is a fully automated
and integrated policy processing system for both personal and commercial insurance
carriers. It is a scalable, reliable, and cost-effective solution for carrying out all businesscritical insurance processing functions
Insurance Software Solutions provider for all segments of the insurance
community and insurance product management. The web based Insurance Management
System Software solution helps to solve long-standing time-to-market challenges. The
web based insurance management system expertise and solution can dramatically lessen
the cost of policy ownership services.
5.1: DIFFERENT TYPES OF INSURANCE SOFTWARE
Insurance Policy Administration System
Insurance policy administration 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 administration system is consisting of a number of policy
administration The Insurance policy domains. The domains are arranged in a hierarchy,
representing descending levels of authority.
Claims Management Systems
This system ensures claims are processed fast and efficiently. Operator flexibility
is the key, and we aim to improve operator productivity while processing claims.
Real-time status for quick resubmission and faster reimbursements. Unique claim
aging tool shows thousands of claims status in one view. Insurance Claims System uses
electronic filing system to primary and secondary payers. Each claim is scrubbed with
up-to- date Medicare rules. This Claim Processing System helps in quick resubmission
for claim

Insurance Agency Management System

Insurance Agency Management System facilitates an insurance company's ability
to address relationships with its product distribution channels. This system helps in
managing current Agencies, can add New Agencies or Delete Current Agencies.
Insurance Agency Management System is the solution that delivers to manage and grow
your insurance agency to assist day-to-day management of your agency. Agency
management utilized for small business, individual or enterprise business.
Insurance Agent Management System
Insurance Agent Management System maintains Multiple Agents from Multiple
Agencies, keep the track of their activities from Policy Registration to Claim processing.
All their data, their commission, their policies status updates, etc. are taken care by this
module. This Insurance system helps in smooth functioning of the Agents working and
makes the processes faster and efficient.
Policy Management System
Policy registration is intended to be a vehicle for the exploration and discussion of
policy issues and is aimed in particular at enhancing communication between health
policy researchers, legislators, decision-makers, and professionals concerned with
developing, implementing, and analyzing health policy. Policy renewals and policy
cancellation can be managed by the insurance policy management system
User Management System
A new user registers by filling in a form on your web-site. If necessary, the new
user is first place 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 password to make changes.
You can use overviews of users for mailing purposes etc..
User Management System manages all the users of the system i.e. Customer,
Administrator or Agents. It keeps the track of thee the activities they performs, their data,
their access information, etc.

Online Data Back-up System

Online Back-up System is used to have the backed off the data on another server
so that in case Original Data get Damage, Lost, etc. then the data is available for work.
This system helps in the Real Time Data Backup and maintains the data for the
future purpose. It also facilities the data back-up at other Geographical location.
The benefit of Online Insurance Management System
Online Back-up System is used to have the backed off the data on another server
so that in case Original Data get Damage, Lost, etc. then the data is available for work.
This system helps in the Real Time Data Backup and maintains the data for the future
purpose. It also facilities the data back-up at other Geographical location
The benefit of Online Insurance Management System
Radix is the right technology choice for the vast majority of insurance-selling
organizations on line. We have been closely associated with leading insurance players.
Radix is essential for successfully managing and growing your business. Our web based
insurance management system can manage your insurance business perfectly.
The following are five technical considerations that affect the usage of Internet:
Bandwidth:
The rate measured in bits per second, at which information is transferred through a
network
Latency:
The time required to transmit data across a network
Availability:
The continuous accessibility of the network, the applications of which it is composed,
and the services it offers.

Security:
It is the most important technical consideration in the adoption of web-based and other ecommerce applications by the insurance industry. The sensitive aspect of security in ecommerce concerns privacy, or in other words; the confidentiality and authorized use of
personal data, more pronounced in health insurance.

CHAPTER: 6 ONLINE INSURANCE

Online insurance refers to the buying and selling of insurance policy online.
Insurance is subject to the principle of utmost good faith, which makes it convenient for
people to conduct the business online, as both the parties have absolute duties to disclose
all material facts otherwise any contract concluded is void.
Conducting a complete insurance transaction can be difficult due to the necessity
of underwriting, sales, and a whole network of employees to ensure the contract is up to
company standards. For this reason, many types of personal insurance are now sold
online, including car insurance, travel insurance, and medical insurance.
In recent times, many online insurance providers now provide not only an
insurance quote online, but perform the remainder of the selling process manually, and
takes a large amount of paperwork out of the process. Sonic international insurance
companies still require an actual physical process to take place.
6.1: CYBER FRAUD
Insurance fraud is nothing new, but the Internet provides dishonest people with
more opportunities to commit online fraud. The Internet allows people to remain
anonymous and open or close stores in a couple of minutes. Here are some common
cyber fraud schemes to look out for:
Copycat websites with company logos.
The fake website promises a consumer insurance coverage from what appears to
be a reputable insurance company. The consumer later learns the real company never
received the application or payment.
Agents stealing premiums.
Premium theft happens when an agent who advertises on the Internet provides a
fake policy or proof of insurance card and keeps an annuity or insurance payment.

sale of fake insurance.

These sales happen when a website offers insurance at a low rate, but you later
learn that the insurance company is fake and the policy is worthless.
Multi-level marketing or pyramid schemes.
These schemes begin with an email or Internet website that offers something of
value such as an insurance policy if you pay a membership fee. New members are
told they can sell memberships or borrow money against their insurance policies and use
that money to get credit cards and certificates of deposit. Members aren't told they can
only borrow against a policy's cash value, which is usually zero in the first year.
Unlicensed Insurance
The most common type of cyber fraud is selling insurance without a state license.
If a company is not licensed by TDI, it may not pay your claims and you could lose your
premium payments. Call TDI's Consumer Help Line to check a company's or agent's
license status.
Notify TDI if somebody tells you an insurance product isn't insurance and is
exempt from state regulations, or if they tell you they don't need a license to sell a
particular type of insurance. This is a common insurance fraud pitch. If you suspect
insurance fraud, call TDI's Consumer Help Line at 1-800-252-3439.
Privacy Concerns
The Internet provides access to information, products, and services, but it also
allows companies to collect personal information about you that can be shared with
others. Safeguard your privacy online by following these tips:
Think before you give out personal information.
Keep your address, telephone number, Social Security number, email address,
credit card number, and medical information private unless you know who is asking for

the information, why they're asking for it, how it will be used, and how giving it to them
benefits you.
Look for an online privacy policy.
Many companies post privacy policies on their websites, including how any
information you give them will be used and protected If you can't find a policy, send an
email to the webmaster or website asking for the company s policy on privacy and
information security.
Don't allow companies to share your personal information.
Many companies ask whether-they can share your personal information with
other companies.
Security on the Internet
The Internet is enticing because it's always open for business. Make sure your
online transactions are secure by taking the following precautions:
Use the current version of your browser and set your security preferences:
Secure browsers can encrypt your credit card numbers and personal information,
confirm the identity of websites, and notify you if a website looks suspicious.
Before you enter your credit card number or personal information:
make sure the website address begins with http:// and there is a key or lock
security symbol on the bottom corner of the browser.
Don't enter any information if you're unsure:
II' your browser isn't secure or you don't want to give information over the
Internet, call the company or agent and ask if you can give it to them over the phone or
by fax or regular mail.

 Keep passwords private:

Use a combination of numbers, letters, and symbols. Don't use any part of your
telephone number, birth date, Social Security number, or address.
Keep records:
Print out copies of orders or any forms you fill out online.
Pay with a debit or credit card:
In most cases, you will only be responsible lin paying the first $50 in
unauthorized charges on your card.
Do business with companies you know:
Anyone can set up an electronic storefront on the Internet. If you're not familiar
with the agent or company, ask for more information or reference.

6.2 Phone Insurance

Can't live without your cell phone ? Get Phone Insurance so you don't have to.
Here are UMW reasons to choose Phone Insurance:
Without insurance, you may he required to pay full price for a new phone if a
replacement was needed.
Insuring your phone provides you peace of mind by protecting your investment in the
event of loss, theft, accidental damage, and out- of-warranty mechanical or electrical
breakdown
It's easy and convenient.
You can typically receive a replacement phone within the next business day, once your
claim is approved.

How does it work?

Simply enroll in Phone Insurance when activating your new phone or in My Account
within 30 days of purchasing your new Boost Mobile(P, phone with an accompanying
Monthly Unlimited plan. The monthly cost is per enrolled phone.
Once enrolled, you are eligible for 2 approved claims within a 12-month period
beginning on the date of the first replacement. There is a per claim limit of S1.000. Once
your claim is approved, you will pay a nonrefundable deductible of S25, S65, or 5100
based on your plan. You may cancel your coverage at any time and receive a prorated
refund or credit, if any, of your unearned premium within 15 days in accordance with the
terms of your contract or applicable law.

Chapter:7 Information Technology Introduce in LIC

LIC has been one of the pioneering organizations in India who introduced the
leverage of. Information Technology in servicing and in their business. Data pertaining to
almost 10 errors policies is being held on computers in L1C. We have gone in for relev
ant and appropriate technology over the years.
1964 saw the introduction of computers in L1C. Unit Record Machines
introduced in late 1050's were phased out in 1980's and replaced by Microprocessors
based computers 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.

Chapter 8 technology trend in insurance market

Computerization:
Initially, in the late 1950's the insurance companies used Unit Record Machines
(Electro Magnetic Machines) to process data 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 entire process was computerized. This brought about greater efficiency and quick
service delivery.
Internet:
Today, the internet has completely changed the service delivery process. Internet
is today used to even sell insurance policies. Internet is, in fact, proving to be one of the
widely used distribution networks for selling insurance policies. Also Internet is used for
sending premium notices to policy holders through e-mails.
Companies like LIC (www.licindia.com), ICICI (www.iciciprduential.com) all
have websites from which people can get the information about their product, price,
various schemes, lots of information. People can also purchase the products through this
websites.
Call Centers and SMS services:
Almost all the insurance companies have their own call centre t., which cater 4,
queries of the policyholders. This service is 2.4x7 and they have the hot-move Petivn,
(IVR) systems at all the branches.
Electronic Clearance Service (ECS)
Almost all the big organizations today provide the ECS facility to its customers. A
policy holder having an account in any bank which is a member of the local clearing
house can opt for ECS debit to pay premiums. The advantage here is that once the option
is exercised, the policy holder need not visit a branch for paying the premium or

collecting the receipts. On the day indicated by the policy holder, the premium amount
will be directly debited to the hank account of the policyholder and the receipt will he
issued by the designated branch office.

8.1: IMPORTANCE OF TECHNOLOGIES IN INSURANCE

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 basic purpose of insurance technologies is to reduce the paperwork of
proposals and policies and address the customer services effectively in a shorter time than
any other traditional methods. Information technology in insurance has made it easier for
the customers too. Online availability of the insurance agencies allow the clients in
dealing with application procedures, signing proposals and policies as well as in
receiving quotes without even visiting the insurance office in person.
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.

8.2: USING HEALTH INFORMATION TECHNOLOGY TO MANAGE YOUR

INFORMATION
Using health information technology to manage your personal health information
is an important part of our changing health care system. You and your doctor can better
manage your health care by improving how you communicate with each other and how
you maintain your health information.
Using computers and other electronic devices makes it easy for you, your doctor,
and other health care providers (such as hospitals, labs, and X-ray facilities) to store,
share and access your health information. Using computers in this way is known as
Health Information Technology (HIT) or Health IT.
Health information technology may be useful for:
Reducing paperwork by eliminating the need for handwritten medical records.
Reducing medical errors by transmitting accurate information electronically and
eliminating mistakes due to misreading of your doctor's handwriting
Reducing health care costs by decreasing the need for repeat medical tests by different
doctors and eliminating storage space and staff time to maintain medical records
Improving your quality of care by decreasing medical errors and assuring that all your
health care providers have accurate and timely information
Although HIT has many uses throughout our healthcare system, three important
types of health IT may affect you in the near future as more consumers use personal
health records (PHRs) and more physicians use electronic health records (EHRs) and
electronic prescribing (e-Rx).
Personal Health Records:
Your personal health record (PHR) is an online document with information about
your health (and the health of family members) that you keep up to date for easy
reference. Using your PHR, you can keep track of your family's health information, such

as the date of your children's immunizations, last physical exam, major illnesses and
operations, allergies, or a list of family medicines.
Many PHRs are easy to use and may be provided free from your health plan, the
government, your doctor's office, and private companies. Some PHR companies charge a
monthly or annual fee. Since your PHR is online, you can get into and manage your
health information from anywhere that you have access to the internet.
Since you can collect, view, manage, and share your health information
electronically. having a PHR will allow you to take a more active role in managing your
own health care.
Electronic Health Records:
An electronic health record (EHR) is computer-based document that is used by
your doctor, your doctor's staff, or a hospital. An EHR (similar to your old paper medical
chart) contains health information from your doctor and other health care providers. A
typical El IR has information about your health conditions, allergies, treatments, tests,
and medications.
Many EHRs can connect with health care providers outside your doctor's office
such as specialists, labs, imaging facilities (X-rays, CT Scans, MRIs), and the local
hospital. This allows your doctor to share up-to-date information with your other
providers as well as getting quick and easy access to your tests and hospital information.
Since everyone involved your care can share accurate information, your EHR can
help lower the chances of medical errors and may help improve the quality of your health
care.

CHAPTER 9.

TECHNOLOGY DRIVE INSURANCE

INDUSTRY GROWTH

To complete successfully and operate more efficiently, insurance companies are

deploying information technologies such as devices, social media, big data, predictive
modeling and cloud computing.
Maintaining a Competitive Edge:
Another insurer, Safeway Insurance, is the largest privately held, family-owned
insurance company in the United States. The majority of its auto, home and renters
insurance policies are sold via independent agents, so it's important that the company
maintain a competitive edge with the online tools agents use to sell insurance.
"In recent years, like most businesses, we have shifted our point-of-sale system to
a Web-based solution, which allows our independent agents access directly into our
policy system in order to provide their customer with real-time pricing, payments and
print documentation, if desired," says Mike Leather, director of IT operations.
This required IT to provide a reliable and fast infrastructure in order to maintain
the agents' focus on selling Safeway products over those of its competitors. "If agents try
to access the online point-of-sale system and encounter performance or availability
problems, they'll move on to the carrier that has the next-best price and sell that policy to
the customer sitting in front of them." Leather says.
The company needs to maintain nearly 100 percent uptime for its Microsoft SQL
Server-based point-of-sale application, called Safeway XChange. which agents rely on to
provide quotes to customers, Leather says. Several years ago, a storage 110 bottleneck
hampered the performance Of Safeway XChange, undermining sales efforts. As a result,
agents complained of slow response.
The IT team quickly determined that the direct-attached storage system in place was no
longer adequate for

its application. It evaluated options and decided to deploy a

virtualized storage area network (SAN), the Dell Equal Iogic SCSI. The system has
enhanced performance and sped up recovery times.
As a result, the firm can support 16 percent more customers and 71 percent more
agents, with no increase in the size of the IT staff. Other benefits include a 60 percent
reduction in storage footprint; 99 percent decrease in complaints about slow performance;
20 percent improvement in 110 performance; and a 75 percent reduction in tape usage
with disk-based backups, resulting in savings of $6,200 per year. The LIC is one of the
largest users of Information Technology in India
The LIC is one of the largest users of Information Technology in terms of
hardware and in house developed application software. The "Green Channel" is for on the
spot policy completion and the "Single Window" provides all policy servicing at one
single point.
The "CRM" module shows all the relevant details of a customer displaying his
individual interest in particular plans and giving marketing leads to meet his future needs.
The LIC has Wide and Metro Area Network Connect 90 centers covering 101 division
and 2037 branches. Through the LIC's website people get information about the
Corporation's products services, subsidies, and addresses of branches and about the
premium payment through the internet. The LIC has installed Information Kiosles at
prominent places in India.
9.1: IT COVERS YOUR INSURANCE
After growing use of mobile banking, insurance on mobile is the next big thing,
say industry people
In the days to come, you may be able to carry out most of your insurance-related
tasks in real-time; with insurance companies gradually increasing the use of information
technology (IT)-driven solutions in their operations.
The development of mobile telephone-based solutions and technology for
business process management is on the anvil, say industry experts.

Already, IT is the backbone for insurance operations on which most stakeholders

carry out their business transactions, says Thomas Varghese, HeadIT, Bajaj Allianz.
"Starting from providing a quote, accepting a proposal, to issuing a policy,
followed by post-sales servicing, claims processing, each step is dependent on the use of
IT," he adds.
"The use of IT as an enabler and differentiator is already a well-recognized fact in
the industry," agrees Srinivas Ayyarigar, Chief Operating Officer, Aegon Religare Life
Insurance Company Ltd."

Chapter 10 Issue in insurance industry use of technology

Producing more efficiently would give an insurer the option of increasing
dividends to its owners, lowering the price of its products, increasing its employee and
producer compensation, or some combination of these. The key to gaining a competitive
advantage is the insurer's ability to identify and provide the incentives to meet
stakeholders' often divergent needs innovatively and competitively.
One major development that insurers use to gain competitive advantage is the
increased reliance on mobile computing (that is, using notebook computers with modems
and cellular phone lines). Mobile computing originated in the industry to enable claim
representatives to better serve their clients, the ability to record claim information at the
scene of a loss and to send it immediately to the company greatly improved service. This
first step allowed insurers to develop other ways of using mobile computing. With the
advancements that have been made in modems, wireless communications, and note-book
computers, insurers can now provide access to their computer systems to agents
anywhere and at any time. The ability to connect to company intranets and Internet
servers allows insurers to provide up-lo-date information to their agents, which in turn
allows for making more informed business decisions. This is one more way that an
insurer can use technology to gain competitive advantage.
Optimizing Use of Information Resources
Technology has already permitted insurers to reap many benefits. With most of
the major labor-saving applications already in place, insurers are moving into the less
quantifiable gains from information technology, such as customer service improvements
and product customization. to evaluate new systems and allocate their scarce resources
for the greatest returns, managers must know the total costs of the company's investment,
understand the organizational consequences of system changes, and be able to measure
the benefits.
Measuring Total Benefits

Just as insurers are more informed about the costs of an information technology
project, insurers now recognize that they should determine the full range of the benefits
of using information technology. For instance, an insurer would need to identify all of' the
benefits that would result from automating a rating system, including those that cannot be
measured but can only he estimated. The insurer should try to assign a cost to improved
accuracy, faster service, smoother work flow, and other improvements. The search for
benefits should not be limited to the rating unit, but should include savings realized in
other units that perform the steps that precede and follow rating.
>. Internal Monitoring
Automated systems can keep track of the work they do, and they can also be
designed to provide managers with summaries of processing activities and to report
conditions that fall outside of defined limits. Automated systems can report on their own
efficiency; the system counts the number of transactions and compares it to a number that
management has set as a standard. Managers must be cautious when using a system to
report on the performance of employees, and departments. Many managers make very
selective use of a system's ability to, as some unit would say, spy on employees.
Properly designed systems can direct the manager's attention to the benefits or
results produced as contrasted with tallies of keystrokes, items processed, or other
activities. Moreover, the benefits to a range of stakeholders can be identified and
reported. For example, a company could design its policy processing system to report
measures of service that are important to its agents, such as the average time needed to
calculate a quote or to issue a policy.
Data storage
Early electronic computers such as Colossus made use of punched tape. a long
strip of paper on which data was represented by a series of holes, a technology now
obsolete. Electronic data storage, which is used in modern computers, dates from the
Second World War, when a form of delay line memory was developed to remove the
clutter from radar signals, the first practical application of which was the mercury delay
line. The first random-access digital storage device was the Williams tube, based on a

standard cathode ray tube, but the information stored in it and delay line memory was
volatile in that it had to be continuously refreshed, and thus was lost once power was
removed. The earliest form of non-volatile computer storage was the magnetic drum,
invented in 1937 and used in the Ferranti Mark 1, the world's first commercially available
general-purpose electronic computer. IBM introduced the first hard disk drive in 1956, as
a component of their 305 RAMAC computer system. Most digital data today is still
stored magnetically on hard disks, or optically on media such as CD-ROMs. Until 2002
most information was stored on analog devices, but that year digital storage capacity
exceeded analog for the first time. As of 2007 almost 94% of the data stored worldwide
was held digitally:52% on hard disks, 28% on optical devices, and 11% on digital
magnetic tape. It has been estimated that the worldwide capacity to store information on
from less than 3 Exabyte in 1986 to 295 Exabyte in 2007,doubling electronic devices
grew roughly every 3 years.
. Databases
Database management systems emerged in the 1960s to address the problem of
storing and retrieving large amounts of data accurately and quickly. One of the earliest
such systems was IBM's Information Management System (IMS), which is still widely
deployed more than 40 years later. IMS stores data hierarchically, but in the 1970s Ted
Codd proposed an alternative relational storage model based on set theory and predicate
logic and the familiar concepts of tables, rows and columns. The first commercially
available relational database management system (RDBMS) was available from Oracle in
1980.
Data retrieval
The relational database model introduced a programming-language independent
Structured Query Language (SQL), based on relational algebra.
The terms "data" and "information" are not synonymous. Anything stored is data, but it
only becomes information when it is organized and presented meaningfully.[ Most of the
world's digital data is unstructured, and stored in a variety of different physical formats
even within a single organization. Data warehouses began to be developed in the 1980s to

integrate these disparate stores. They typically contain data extracted from various
sources, including external sources such as the Internet, organized in such a way as to
facilitate decision support systems (DSS).
Data transmission
Data transmission has three aspects: transmission, propagation, and reception. It
can he broadly categorized as broadcasting, in which information is transmitted
unidirectional downstream, or telecommunications, with bidirectional upstream and
downstream channels.
XML has been increasingly employed as a means of data interchange since the early
2000s,particularly for machine-oriented interactions such as those involved in weboriented protocols such as SOAP, describing "data-in-transit rather than data-at-rest".
Data manipulation
Hilbert and Lopez identify the exponential pace of technological change (a kind
of Moore's law): machines' application-specific capacity to compute information per
capita roughly doubled every 14 months between 1986 and 2007; the per capita capacity
of the world's general-purpose computers doubled every 18 months during the same two
decades; the global telecommunication capacity per capita doubled every 34 months; the
world's storage capacity per capita required roughly 40 months to double (every 3 years);
and per capita broadcast information has doubled every 12.3 years.
Academic perspective
In an academic context, the Association for Computing Machinery defines IT as
"undergraduate degree programs that prepare students to meet the computer technology
needs of business, government, healthcare, schools, and other kinds of organizations if
specialists assume responsibility for selecting hardware and software products
appropriate for an organization, integrating those products with organizational needs and
infrastructure, and installing, customizing, and maintaining those applications for the
organization's computer users."

Conclusion

Technology in the insurance sector has improved every aspects of the industry.
Technology play a major role in data management process of an insurance agency by
providing flawless service from underwriting policies, producing documents to collecting
various rating and data. This state of the-art implementations offers instantaneous
accurate nil,' 'nation 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 hack the annual expenditure of the organizations.
There is a variety of insurance technologies available in the market. The hardware
and the insurance software should he 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.
Technology in insurance has changed the way the entire industry operates today.
No longer do the loads of paperwork and manual labor hamper the process or leave scope
for errors. As the awareness and demand for various insurances have risen so has the
complexities of the business itself. Now there are policies for personal as well
professional safety, for life, non-life health to a wide range of product insurances. On top
of all these there has been globalization. Leading insurance brands have all gone global
with their operations spreading across countries and across the different strata of society.
And this is where insurance software systems have come in to streamline the volume of
work and deliver quality services. Technology in insurance has also made the insurance
industry go green. It has drastically cut down the amount of precious paper that would be
otherwise used to manage and store all the data.