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LIC's policyholders may have never expected so much convenience. Getting to check policy status and every other detail online in the comforts of ones home is truly a dream come true.
And that's not all. The corporation's plans of online premium payments that has gone on stream will make premium payments easier and hassle free. So the policyholder will also have the facility to pay premium for a Delhi based insurance policy in Mumbai.
And all this has been introduced only after the industry has been thrown open. Blame it on the lackadaisical attitude of the government in educating the masses or the types of covers that were issued earlier, insurance was never considered as important before. The purchase motivation was mainly for tax purposes. But now the industry has gone through a revolutionary change.
Information Technology:
Among all the hoopla, one factor that has brought sweeping changes 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 will need to redefine the way business was conducted so far. For, traditional methods will have to be done away with and assimilation 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 will be the key factors for success in this industry.
Easier Information accessibility:
The Internet has ushered in a new wave of information accessibility. And hence, the net medium has gained incredible importance. Almost every insurer worth his salt has made his presence on the net. Moreover, it has eased the time-consuming procedure of information sourcing. Other than providing information on policies the net will also enable making premium payment and sell insurance products online. The development of e-commerce and m-commerce will soon emerge as advanced distribution channels virtually turning companies into paperless organisations.
Electronic data:
Knowledge management, that was unheard of before, has today converted loads of files 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 mouses 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 his inimitable style mouthed a few benefits of policies and most often the prospective customer ended up buying a policy the agent recommended. Today the customer can compare premium rates, analyse, work out calculations, demand more information than whatever he has been provided with and the insurance agent 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. But not anymore.
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-selling insurance products through banks 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. Realising the enormous potential cyberspace marketing holds, companies now devise advertising budgets accordingly. Times are changing and insurance agents and development officers have become computer savvy.
Packaged software solutions:
Now packaged software solutions for insurance agents and development officers have become a runaway success. Premium calculations, future projections, proposals etc for clients need not be a drudgery anymore. Packaged software products are extensively used for presentations, proposal follow-ups, policy services, client services, commission tracking, underwriting, task management etc.
Computerisation:
Sensing the importance of technology in insurance and not to be left behind, the Life Insurance Corporation (LIC) has finally computerised its 2,048 branches providing connectivity between 33 major cities in the country with wide area network (WAN) in addition to the eight cities, which have already been connected. With this initiative, LIC will have connect around 750 branches.
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 net soon.
The advent of digital signature would be one step ahead - to happen shortly. All this has changed the very profile of the customer he was, earlier. 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 utilise them to the maximum extent possible will survive and succeed
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