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Program : MBA
Semester : IV
Subject Code : MF0018
Subject Name : Insurance and Risk Management
Unit number : 15
Unit Title : Information Technology in Insurance
Lecture Number : 15
Lecture Title : Information Technology in Insurance
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Information Technology in Insurance
Objectives
The objectives of this lecture are to discuss:
The application of information technology in insurance sector
The need for information technology in insurance sector
The concepts of database management systems, decision support
systems, mapping, video linking, catastrophe models, intranet,
extranet and internet and so on
The use of information technology in marketing and consumer service
in the insurance sector
The role of information technology in various insurance sectors
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Unit-15 Information Technology in Insurance
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Lecture Outline
Introduction
Application of Information Technology in Insurance Sector
Need for Information Technology in Insurance Sector
Role of Information Technology in Insurance
Summary
Check Your Learning
Activity
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Unit-15 Information Technology in Insurance
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Introduction
The insurance industry is facing a major economic and competitive
challenge...
To be successful in the rapidly growing business climate, insurers
are forced to explore ways to improve the end product efficiency
and drive top-line growth.
The use of information technology in insurance industry has an
impact on the efficiency of the organisation as it reduces the
operational costs.
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Application of Information Technologyin Insurance Sector
Some significant applications of IT in insurance sector are:
Database management systems
Data warehouse
Decision support systems
Group support systems
Imaging and work-flow technologies
Mapping
Call centre technology
Video linking
Catastrophe models
Intranet, extranet and internet
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Effective utilisation of information technology is very
important for the success of insurance sector.
Insurers adopt technology for information revolution.
The insurance companies use the applications of information
technology for better customer service, cost reduction, product design
and development.
The need of information technology in insurance business is growing
day by day.
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Need for Information Technology inInsurance Sector
Unit-15 Information Technology in Insurance
Continued
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Insurers need to use information technology for the following reasons:
Developing new products
Management of client data
Marketing of policies
Claims management
Payment of premiums
Improve the efficiency of their operations
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Need for Information Technology inInsurance Sector
Unit-15 Information Technology in Insurance
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The role of IT in different fields of insurance are:
Actuarial investigation
Policy management
Underwriting
Front end operations
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Unit-15 Information Technology in Insurance
Role of Information Technology inInsurance
Continued
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Customer knowledge
Consumer service
Marketing
Role of Information Technology inInsurance
Unit-15 Information Technology in Insurance
Market researchProducts
customisationAgent analysis
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Summary
The use of information technology in insurance industry
has an impact on the efficiency of the organisation.
Some significant applications of IT in insurance sector are
database management systems, data warehouses, decision
support systems and so on.
The insurance companies use IT for better customer service, costreduction, product design and development.
Insurers need to use information technology for developing new
products, managing client data and so on.
The fields of insurance where IT is used are actuarial investigation, policy
management, underwriting and front end operations.
Customer knowledge and consumer service are two areas in the
marketing of insurance products where IT is used.
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Check Your Learning
1. Name any three significant applications of IT in insurance sector?
Ans. Three significant applications of IT in insurance sector are:
Database management systems
Data warehouse
Decision support systems
2. Why do insurers need to use IT? Give any three reasons.
Ans. Insurers need to use IT to:
Develop new products
Manage client data
Improve the efficiency of their operations
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Activity
HOMEPREVIOUS
Analyse how private insurance companies are using information
technology to provide better customer service.
Unit-15 Information Technology in Insurance