Implementation of a Computerized Management System in Insurance Industry

Implementation of a Computerized Management System in Insurance Industry

Abstract of Implementation of a Computerized Management System in Insurance Industry

The study examines the implementation of computerized management system in insurance industry.  It identifies the imperatives for adoption of technology to promoting efficient and effective service delivery in the insurance industry as a strategy for attainment of profit maximization objectives of insurance company in Nigeria. The study is an empirical design which utilizes responses of structured questionnaire of 160 respondents from 3 insurance companies to explore the impact of technology adoption and insurance companies profitability in Nigeria. This implies that the adoption of technologies by insurance companies enhanced their efficiency, quality of service delivery and profitability. The study included the implementation of a computerized management system has positively effected insurance industries in Nigeria. One of the findings of the research is that there is improvement in the computerized management system in the insurance industry since it was computerized. And one of the recommendations is that physical control should be established for overall security of data centre to prevent physical damage to hardware and software or injury to personnel arising from fire or other hazard and to prevent theft.

Chapter One of Implementation of a Computerized Management System in Insurance Industry

INTRODUCTION

BACKGROUND OF THE STUDY

Introduction of computer in the in the insurance sector has improved every aspect of the industry.

Technology plays a major role in data management process at an insurance companies by providing flawless services from underwriting policies, producing documents to collecting various ratings and data. The state of the art implementations offers instantaneous accurate information about different insurance’s to the clients. Insurance firms regularly  spend a part of their yearly premiums on morden technology that aids in enhancing the overall performance of the organization. Insurance technologies helps 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 technology is to reduce the paper work of proposals and policies also address the customer service effectively in a shorter time than any other traditional method. Information technology in insurance has made it easier for the customers too. Online availability of insurance agencies allow the client 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 help the in reducing the cost by eliminating the mail rooms, paper files as well as data entry clerks. The elaborate underwriting data processing and the rating take place online and customers or brokers receive the email policy documents within a short time. This online advantage. However, comes with a price. The system requires a substantial initial investment in it primary stages but the owner certainly gets his returns on investment over the years that has come equipped with superior services and response timing. Various innovative technological applications allows the insurers to recognize the risks and opportunities easily. The modeling device examines the loss histories and compare them with the risk characteristics  while it searches for correlation’s. Such insurance technology help the insurance companies to charge higher prices for the higher risk client base and lower price for the safer opportunities. There are 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 system enables the firm 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 chart application. Such improvement would have been impossible if there were no insurance technology available within the industry.