USE OF INRORMATION TECHNOLOGY IN INSURANCE INDUSTRY

The present scenario is such that the products sold with the help of Internet. The technological advancement is
such that force the companies to take such steps. Still the full-fledged use of Internet is not done in our country.
As suggestion earlier the Internet based life insurance will help the companies to reduce the transaction cost
and time. At the time it can improve the quality of service to its customers, which is the mission of the
company.
Internet can be an effective medium for educating the consumers about insurance. It serves as a single
window for disseminating product, process and procedural information to the consumers.
Product development and target marketing through the Internet: with increase in the number of insurance
companies there will be a need for market segmentation and subsequently product designed for each of them. In
such a scenario Internet can be a effective channel for pushing product specific information to a particular
market segment. Consumer feedback about a particular product as well as suggestions for different types
or covers can also be generated through the Internet
1. E-business insurance in India: –
The Internet has played a vital role in transforming the business of the 21st century. Computers are now being
used extensively for creating a storing data, information with the help of complex and sophisticated
technological tools in every kind of business. This change having been widely accepted, the advantages are
numerous such as fast processing improved. Efficiency, cost reduction among several other benefits.
2. Maintaining the database:-
The most important factor that is affecting the insurance industry is the maintaining the database of the
customers. The insurance industry having a huge list of the customers. . Thus maintaining the database has
really become easy due to the development in technology.
3. E-Commerce in the Indian Insurance Industry
With the advent of the Internet, online processes are replacing conventional models in our society. The greatest
impact in online technology has been achieved by e-commerce. E-commerce is attractive both to buyers and
sellers as it reduces search costs for buyers and inventory costs for sellers. The recent growth of Internet
infrastructure and introduction of economic reforms in the insurance sector have opened up the monopolistic
Indian insurance market to competition from foreign alliances. The evolving scenario in the insurance industry
in India and identify the features of online insurance that improve the conventional insurance model and thus,
makes it more attractive for the Indian insurance industry to go online.
TECHNOLOGY TREND IN INSURANCE MARKET
Computerization:
Internet: 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.iciciprudential.com) all have websites from which people can get the
information about their products, prices, various schemes, and lots of other information. People can also
purchase the product through this website.
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 bank account of the policyholder and the receipt will be issued by the designated branch
office.
Call Centres and SMS services:
Almost all the insurance companies have their own call centres which cater to the phone based queries of the
policyholders. This service is 24×7 and they have the Interactive Voice Response (IVR) systems at all the
branches.