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, Head–IT, Bajaj Allianz.

“Starting from providing a quote, accepting a proposal, to issuing a policy, followed by post-sales servicing, claims processing, each step is dependant on the use of IT,” he adds.

“The use of IT as an enabler and differentiator is already a well-recognised fact in the industry,'' agrees Srinivas Ayyangar, Chief Operating Officer, Aegon Religare Life Insurance Company Ltd.

For instance, you might be buying your car insurance online at a place and time of your choice.

Even when you make a claim with your auto dealer, the cycle of events — from informing the company, arrival of a surveyor to inspect the damage and the claim processing — is now mostly IT-driven.

COST OF IT

While insurance companies were not forthcoming on the cost they incur on software and other IT applications, it is apparent that it would also depend on the nature and scale of operations of a particular company.

There is some insurance-specific software available in the Indian market, such as Engineum, provided by TCS, and Life Asia by Computer Sciences Corporation (CSC).

While IT vendors who provide software to insurance companies are numerous globally, the prominent vendors for Indian companies include Computer Sciences Corporation and HP.

The core solutions for the insurance industry are Future First Asia, Life Asia and Engenium, according to industry sources.

However, there is other software too.

Bajaj Allianz uses software called OPUS, trademarked by Allianz.

Having used the software over the years, Bajaj Allianz has now enhanced its offerings to a web-based platform and serves as the first and second-level OPUS helpdesk for global organisations. “We have also done various projects on developing software for Allianz group companies in Singapore, Malayasia, Russia, Thailand, Japan,” says Varghese.

On an average, 3-5 per cent of operational expenses might be from implementing IT.

“In general insurance, there is a growing tendency to lean on technology by spending more as it could give gains by allowing us to cut manpower costs. As most of the general insurers are making losses, this becomes more important,” a senior functionary of a leading general insurance company says. “However, some of these may be one-time infrastructure costs or fixed licence fees,” he adds.

DATA SECURITY

It is only natural that vital information pertaining to the security of millions of lives would have to be protected.

Most of the insurers have put in place a robust data security regime at multiple levels — from safeguarding the main portal of the company, to taking advantage of the latest advancements in Cloud Computing.

Protection initiatives include certifications for a trusted security site for the portal, an encrypted data flow, and a combination of password and some key information being used.

“As insurance is about confidentiality, trust and reliability, it is also important to begin protection from the sales force or employee-level itself. We have been providing completely encrypted laptops to our executives,” points out Ayyangar.

Another measure is ensuring that no key information is stored on personal or stationary servers.

“Some applications (such as ‘rules engine') are also being run on the Cloud platform in this regard,” he says.

NEXT IN LINE

The frontiers of IT applications are set to expand in the days to come. The convergence of mobile technology to provide real-time customer services is most awaited, say industry experts.

After growing use of mobile banking, insurance on mobile is the next big thing. “I think there is a lot of scope for advanced solutions for mobile data security as much of the insurance salesforce is highly mobile,” says Varghese of Bajaj Allianz.

Further, moving from transaction processing to service to customers, the adoption of business process management technology and analytics support to the customers are further possibilities.

Self-service or service-on-the-move would be on the cards in the future.

“Since buying insurance is often seen as a complex task, increase in automation and other IT platforms will enable the industry to not only speed up the turnaround-time on various customer requests but also simplify insurance,” says Varghese.

According to an estimate of Standard and Poor's, the Indian general insurance sector would be worth Rs 40,000 crore premium by the end of 2011.

A recent study by FICCI and Boston Consultancy Group pegs the likely size of the insurance industry at Rs 15-18 lakh crore by 2020.

And IT will definitely be one of the prime facilitators of this growth.

>nagsridhu@thehindu.co.in

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