MIS Project R.B.

8/7/2019 MIS Project R.B.

1/19

A

Project Report

On

Use of information system solution for efficient operation:- Case study on ICICI LombardSubmitted towards the partial fulfillment of

IIIrd Sem M.B.A. (Insurance)

Degree course, for the subject

Management of information system

Submitted by: Submitted to:

Ram babu Parihar Dr. Manmeeta

M.B.A. (Insurance) Associate professor and

IIIrd Semester asst. dean

Roll no. 231

NATIONAL LAW UNIVERSITY, JODHPUR

2010

1


2/19

CONTENTS

SERIAL NUMBER CHAPTERS PAGE

NUMBER

Title

Research methodology

Information system 3

CHAPTER-1 Challenges facing by insurance industry 4

CHAPTER-2 Case study on ICICI Lombard 7

CHAPTER-3 Profile of ICICI Lombard

Challenges before ICICI Lombard

Information system solutions

CHAPTER-4 Conclusion 18

CHAPTER-5 Bibliography 19

Title: -

Use of information system solution for efficient operation:

:- A case study of ICICI Lombard

2


3/19

BROAD AREA OF RESEARCH:

Role of Information system in General insurance business.

Research methodology

Data collection

Data collection techniques

The data used in this proposal is Secondary in nature and is in the form of various

publications of foreign bodies, books, magazines and newspapers, reports prepared

by research scholars, news documents and other sources of published information.

INTRODUCTION:

INFORMATION SYSTEMS:

Information system in a broad sense is used to refer to the interaction between

people, processes, data and technology. Hence the term refers not only to the

information and communication technology but also to the way in which people

interact with this technology in support of business processes.

Challenges facing by insurance industry:

Challenges are mounting for insurers. Increased pressure for profitability translates

into a hard look at cost reduction and top-line revenue growth. Profitability is

linked to the ability to accurately assess risk and manage customer relationships

over time to achieve financial success.

3


4/19

With the arrival of private sector insurers with the partnership of multinationals

players the indian insurance space consisting of around 45 players both in general

life insurance industry. Today , life insurance penetration in india is around 4.75% ,

and 0.60% of general insurance. Still non-life insurance has very low penetration.

The Current Challenges to Underwriting Excellence:

As insurers continue to strive to reduce costs and capture profitable market share,

the limitations of their current processes, applications and infrastructure prove to

be major obstacles in fulfilling organizational strategic objectives. Most insurerscontinue to process business using Policy Administration platforms that are unable

to accommodate many of the industry stated business needs such as speed to

market, sophisticated underwriting and imbedded compliance using low costs

processes. They are inadequate because they were never designed to address these

current requirements and regrettably many are built using inappropriate

architectures and code that prove to be too inflexible to easily change. Policy

Administration systems have largely fulfilled a risk registration and accounting

data capture function. Many are now purely a conduit to other applications that

serve a functional requirement and many are being phased out as a consequence of

rationalization and their inadequacy in servicing current and future business needs.

When addressing a wide spectrum of business, channels to market are diverse as

are the processes. Typically, about 50% of business is transacted through

intermediated channels and the remainder through direct channels. The nature of

business transacted will span from simple to complex risks, which translates to

underwriting based on pre-defined rules to specialty risks requiring underwriters'

attention. Non intermediated business continues to increase as customer self

service grows in popularity owing to both customer demand as well as insurer4


5/19

encouragement. Addressing the diverse nature of channels is another key

challenge for insurers.

As a result of geographical expansion of insurers, a third challenge faced is the

nature of trading to a wider variety of target markets.

Solution for efficient underwriting:

Mature markets are saturated and most insurers are adopting strategies that

differentiate their products and target market segments to win customer sets from

competitors. This drives a need for more product sophistication and quality market

data. Imbedding knowledge and compliance into the underwriting process using

electronic rules will substantially enhance control, increase automation and lower

operational costs Speed of service improves, as can the quality of customer

interaction which assists retention.

The opportunities for IT vendors and business transformation

consultants are immense, but to design and deliver future proofed

systems that support optimized operational efficiency is a

challenging task. The challenge for vendors is development of

tools that realistically enable capture and deployment of unlimited

complexities of knowledge into e-trading systems. Now insurers

are gradually identifying vendors for web based solutions, and are

gradually moving onto advanced platforms. Insurers are

substantially adopting information system as a backbone.

Distribution challenges:

5


6/19

The Distribution Challenge

India is arguably one of the most challenging and promising emerging insurance

markets. Its rapidly growing economy, plus a young and huge population spellample opportunities for the development of insurance. There is however much to

be done to realize this potential. A few challenges to be tackled would be to

improve insurer solvency, raise a standard among insurance practitioners, asset

management capabilities, distribution challenges, operation risk mitigation etc.

More than 50% of Indias population lives in tier II-III cities and in rural India.

While tied agents continue to play an important role in distribution, alternative

channels like corporate agents, brokers are starting to play a greater role in

distribution. In spite of these intermediary , penetration is very low. There is need

of more efficient distribution channel to cover up society.

Solution for efficient operation :-

More than 50% of Indias population lives in tier II-III cities and in rural India.

While tied agents continue to play an important role in distribution, alternative

channels like corporate agents, brokers etc.

The penetration of commercial banks in India is unmatched, and no

form of agent led sales-force can compete with it. There are around 68,500

branches of scheduled commercial banks. Each branch serves an .Banks therefore

provide great potential to be tapped.The fastest and the most cost effective way to

6


7/19

target this segment would be by selling insurance policies through their local

banks. Low cost to acquire and process customer applications. Bancassurance

provides one of the lowest cost per transaction.

Bancassurers should plan a technological infrastructure that will exploit

customer information found in the bank's database to uncover sales opportunities

and produce transactional simplicity for insurance customers.

The information banks have about their customers' buying habits, economic status

and money management practices constitutes a valuable asset often unrecognized

even by large, sophisticated banking institutions. Using technology to order

information about the economic behavior of customer segments can provide

valuable insights about insurance-selling opportunities. For instance, customers

buying a home through a bank mortgage can be approached for a variety of

insurance products. With a traditional insurer, behavioral information about

policyholders is usually unavailable, but even when known, can only be employed

by agents (who have an economic interest in thwarting a direct relationship

between the company and the client).

E-Brokerage:

Banks can open or acquire an e-Brokerage arm and sell insurance products from

multiple insurers. The changed legislative climate across the world should help

migration of bancassurance in this direction. The advantage of this medium is scale

of operation, strong brands, easy distribution and excellent synergy with theinternet capabilities.

7


8/19

Case study on ICICI lombard

ICICI Bank Limited

ICICI Bank is India's second largest bank with total assets of over Rs. 1 trillion, a

network of about 540 branches/offices and over 1,000 ATMs. ICICI Bank offers a

wide range of banking products and financial services to corporate and retail

customers through a variety of delivery channels.

Through its specialised subsidiaries and affiliates it offers services in investment

banking, life and non-life insurance, venture capital, asset management and

information technology. ICICI Bank's equity shares are listed in India on stock

exchanges at Chennai, Delhi, Kolkata, Vadodara, Mumbai and the National Stock

Exchange of India Limited.

Its American Depositary Receipts (ADRs) are listed on the New York Stock

Exchange (NYSE) - the first Indian company and one of the first banks/financial8


9/19

institutions from Asia to be listed on the NYSE. ICICI Bank is the only Indian

company to be rated higher than the sovereign rating by Moody's.

Lombard Canada Limited

Lombard Canada Limited is responsible for the insurance management services for

all of the Lombard Group's commercial, personal, and specialized insurance

companies. Exceeding $500 million in annual sales, Lombard Canada Limited also

provides insurance management services for external clients including the Tokio

Marine & Fire Insurance Company Ltd.

Lombard General Insurance Company of Canada underwrites commercial lines

business through select brokers across Canada. Lombard General brokers have

access to one of the industry's most powerful underwriting tools: Business Choice

, a specialized point of sale software developed by Lombard Canada. Beyond

providing small and medium sized businesses with the specialized insurance

coverage they require, Lombard General also offers custom marketing services and

specialized coverages designed to meet the needs of businesses across the country.

ICICI Lombard General Insurance Company

ICICI Lombard General Insurance Company Limited is a joint venture between

ICICI Bank Limited, India's second largest bank and Lombard Canada Limited,

one of the oldest property and casualty insurance companies in Canada.

ICICI Lombard has the guidance of Lombard, Canada, on domain knowledge,

product innovation, business processes based on cutting-edge technology and

international best practice in the insurance business. The company offers a wide

9


10/19

range of retail and corporate general insurance products for today's challenging

business environment.

Challenges before ICICI Lombard

At the turn of the century, the explosive growth of the BFSI segment compelled

ICICI Lombard to look into ways of fending off the increasing competition.

Customers were demanding lower rates and with an increase in demand, the

industry had to respond with solutions that would allow them to sustain margins

without losing In addition to the increased competition, a complex network and

vast geographical presence made it difficult for ICICI Lombard to keep its spendunder control. The organization attributed nearly 80 percent of its spend to

complex indirect expenses like IT, marketing, printing and stationery and

infrastructure and it needed a way to streamline purchasing practices across varied

categories, as well asmanage suppliers more efficiently.

Claim management problems : Claims are not paying in proper time . It takes

longer span of time to compensate. Lack of proper communication between insurer

and insured leads to claims delayed. Investigating, paying and recording claims

data is crucial to any insurance company's financial stability. Without Information

system it is very onerous task to perform well or compensate timely.

Payment information: Perhaps the most essential area requiring accurate and

efficient information technology is an insurance company's client payment details.

Billing and invoicing systems generate the necessary revenue to keep the company

in business. Cash flow remains vital to daily operations and without superior

information technology and processing systems, the carrier's financial stability is at

risk.

10


11/19

Policy details : For those insurance companies providing policies across multiple

lines of insurance, information technology requirements become even more

complex. Details of each insurance policy, ranging from life, home, auto, boat,

liability and business products, need to be accurately recorded and merged with

client data.

Information system solution for efficient operation:-

The IT group at ICICI Lombard is structured for quick response to a dynamic

market place. The approach has been to adopt a customer-centric strategy with

greater speed, higher accuracy and with enhanced capacity that is aligned with

organizations goals and objectives.

The following are the milestones in information system:

Best IT implementation award - ICICI Lombard has been awarded the Best IS

implementation award in the 'Maximum Business Impact' category for its GISbased Risk Management System initiated on August 2004.

Online Manager - a web-based interface enables our customers and intermediaries

to independently process insurance transactions through the internet. ICICI

Lombard has sales and service abilities on the corporate website, providing real

time policy issuance for certain products.

Improved speed and accuracy of claims processing using Talisma - A

Customer Relationship Management (CRM) system and Claims Processing System

(CPS) system have been implemented on the Talisma platform. ICICI Lombard has

integrated the contact center for surveyors, dealers, operations, internal claim teams

11
http://www.ehow.com/business/http://www.ehow.com/business/


12/19

into a single interface leading to improved speed and accuracy of claims

processing.

Deployment of Citrix MetaFrame Presentation Server for faster customer

service, tracking and monitoring of policy related issues at any time - In order

to cater to the diversity of locations at ICICI Lombard and a high volume of

transactions, there was an acute need to centralize applications for faster rollouts.

The company partnered with Wipro Infotech to implement a solution using Citrix

MetaFrame Presentation Server. Now, ICICI Lombards insurance employees and

agents are now able to structure all types of the companys insurance products,

independent of time and location. The system is designed to generate a policy in

less than 10 minutes.

ICICI Lombard signed up for Consigntech "GoDB Platform" for developing

mobile and disconnected POS (point of sale) - ICICI Lombard signed up for

Consigntech "GoDB Platform" a software from Consigntech for developing mobile

and disconnected POS (point of sale). This reduces the transaction cycle time for

policy issuance to its customer at the intermediary and customer premises. As the

processing gets distributed, the infrastructure required is reduced.

ICICI Lombard IS PathFinder - To align the organization with the growing

pace of economic development and expansion, ICICI Lombard has incorporated a

cutting edge IS application called PathFinder as its core policy administration

system. It is a state-of-the-art system that provides an efficient method to quote,

issue, manage policies and critical insurance functions from the internet as well as

the intranet. The system is based on the top-of-the line hardware infrastructure to

ensure its ability to handle the business growth.

12


13/19

CUBOT delivers performance management to ICICI Lombard

Robust Designs implemented a CUBOT based solution that comprised of:

fully automated data aggregation saving time (approx. 20

person days each month) and eliminating errors completely

customizable dashboards that are role-based

atomic level drill-down analytics product, customer,

policy, claim level

intuitive user interface - in the form of graphs, charts and

tables

The CUBOT solution is an Executive Decision Support System that is activelyused by operational and senior managers at ICICI Lombard.

ICICI Lombard Insurance Services Implements Talisma v6

CRM

Insurance giant sets new level in customer service with multi-channel Customer

relationship Management solution from Talisma(TM), a leading provider of multi-

channel CRM solutions, its solution has been deployed by ICICI Lombard, a

leading provider of customized insurance solutions. Talisma V6 provide ICICI

13


14/19

Lombard's customers with enhanced customer service through quicker and more

accurate claims processing.

This interaction includes contact information, customer profiles, appointments, and

service requests, regardless of communication method (chat, email, or phone). The

improved speed and accuracy of claims processing, powered by Talisma v6, has

led to increased customer retention rates for ICICI Lombard.

Implementation of Talisma v6 has allowed ICICI Lombard to map its internal

claims processes, eliminating the need for call center agents to process and forward

each document individually to the company's Claims Managers. Once information

has been input to the system and verified, Talisma v6 records the details of each

claim and assigns the claim to the organization's operations team for payment. This

new integration permits agents to manage claim requests quickly and accurately

saving time by incorporating information from a range of back office systems into

a single interface.

From a marketing perspective, Talisma's v6 enables ICICI Lombard to proactively

build customer relationships through targeted outbound campaigns. Contact

databases can now be integrated into the CRM solution, providing staff with

campaign management tools. This ensures that each contact receives the correct

outbound communication, thereby dramatically increasing customer acquisition

levels.

"Improving customer retention and acquisition is vital in today's competitive global

insurance market. We have helped ICICI Lombard reduce the complexity and time

spent on each claim by eliminating the need to process information from a variety

of back-end systems,"

14


15/19

Citrix Solution for Workforce Mobility:

ICICI Lombard partnered with system integratorWIPRO to implement a solution

using Citrix Presentation Server running on HP ProLiant 380 and Dell 1750

Servers. Citrix technology has helped to maintain and consolidate our

competitiveness in the marketplace. Our employees enter our system through a

WAN, broadband internet, and dial-up and access the advanced end-to-end policy

issuance framework, including customer profiling, quotation processing, policy

issuance and payment process. The system is designed to generate a policy in less

than 10 minutes.

Improved System Administration Generates Cost Savings

Citrix solution, ICICI Lombard has seen a significant reduction in process and

administrative costs. These savings come largely from the centralized

administration inherent to using Presentation Server, which enables IT staff to

deploy, manage and update users systems without needing to be at the location of

the end-user. Said Mr. Motwani, Our high travel costs were eating into the bottom

line, but now our total reduction in the travel component is 70 percent, which

means an annual saving of about Rs. 10 lakhs.

Better Customer Service for Competitive Advantage

Another major benefit of the Citrix solution is improved business efficiency, which

translates to faster close-of-sale and higher customer retention. Since employees

are able to access the most up-to-date information and applications on-demand

from one of the companys multiple offices or on the road they can provide

clients with needed information instantly, on the spot. The new infrastructure

15


16/19


17/19

technology infrastructure will be the backbone to attempt anything in this area. At

an appropriate time the company is also looking at M-powering our sales force

with mobile applications using GoDB."

About Ariba

Ariba, Inc. is the leading provider of spend management solutions to help

companies realize rapid and sustainable bottom line results.

ICICI Lombard began to evaluate options to regulate spend and build efficiency

within the organization. The organization chose Ariba to implement its spend

management solution.

Ariba Sourcing Execution Services were initially deployed to address two large

spend areas, print and infrastructure. The objective was to target high savings and

establish a proven sourcing process within ICICI Lombard. Ariba Sourcing -

Basic was then deployed across all departmentsincluding multiple vendors

across different locationsto help them to leverage a larger supplier base, reduce

overheads and increase its bottom line. The Ariba spend management solutions

have provided clarity into spend, extension of the supplier base and assistance with

negotiating purchaseswhich has created an efficient system for overall purchase

management for ICICI Lombard. Now when the company purchases indirect

supplies, such as office equipment, it is spendingon average21 percent less

than before. The Ariba solutions have also provided valuable information on fact-

17


18/19

based negotiations, including capturing critical pricing and supplier data while

bidding took place.

Conclusion:-

By using the information system ICICI has got tremendous position among rivals .

The information system aided in following mechanism:-

Easy availability of policy details

Cost effective management

Quality service

People awareness about the products of a company etc. are the advantages of

implementing information system.

BIBLIOGRAPHY:

www.medindia.net

www.objectwin.com

http://www.ciol.com/images03/icici.pdf

http://www.icicilombard.com/

http://www.ariba.com/pdf/ICICILombard.pdf

http://www.ciol.com/images03/icici.pdf

http://www.domesticpartnersguide.com

18
http://www.medindia.net/http://www.objectwin.com/http://www.ciol.com/images03/icici.pdfhttp://www.icicilombard.com/http://www.ariba.com/pdf/ICICILombard.pdfhttp://www.ciol.com/images03/icici.pdfhttp://www.domesticpartnersguide.com/http://www.medindia.net/http://www.objectwin.com/http://www.ciol.com/images03/icici.pdfhttp://www.icicilombard.com/http://www.ariba.com/pdf/ICICILombard.pdfhttp://www.ciol.com/images03/icici.pdfhttp://www.domesticpartnersguide.com/


19/19

http://www.domesticpartnersguide.com

Page No.31/ Article Business Connectivity Insurance times /june210

19
http://www.domesticpartnersguide.com/http://www.domesticpartnersguide.com/

MIS Project R.B.

Documents

Transcript of MIS Project R.B.