APPLICATIONS OF COMPUTER IN

INSURANCE SECTOR
By,
ASWIN KUMAR CA
ASMA P A
ASHTAMI SURAJLAL
ASHMITTASAJAN MANOJ
ASHWIN B NAIR
OVERVIEW
• The insurance industry is undergoing a significant transformation due to advancements in technology.
This presentation will explore how technology is reshaping policy management, enhancing efficiency,
and improving customer experiences

KEY AREAS OF FOCUS

• Automated processing of insurance policies, Management of customer records Claims processing
and fraud detection, Underwriting and pricing strategies, Customer relationship management,
Marketing and sales etc.
 POLICY MANAGEMENT
• Automated Processing: Computers automate the creation,
updating, and renewal of insurance policies. Insurance companies
use software systems to streamline policy issuance and reduce the
need for manual paperwork.
• Customer Records: Digital systems store and manage customer
information, such as personal details, policy types, payment
schedules, and claim history. This helps insurers access, update, and
retrieve data efficiently.
• Document Management: With the help of computer-based
document management systems, insurers can store, organize, and
retrieve documents quickly, improving customer service and
compliance with regulatory requirements.
 CLAIMS PROCESSING
• Claim Management Systems: Insurers use computer systems to
manage the entire claims process, from filing to settlement.
Automated claims workflows allow for faster processing and a
smoother experience for customers.
• Fraud Detection: Advanced data analytics and machine learning
algorithms are employed to detect fraudulent claims by comparing
patterns and analyzing historical data for inconsistencies or suspicious
activities.
• Image Recognition: In some cases, insurers use computer vision
technology to process claims involving damage assessments, such as
auto accidents or property damage, by analyzing photographs or video
footage.
 UNDERWRITING AND RISK
ASSESSMENT
• Risk Assessment: Computers assist underwriters by using advanced
algorithms and statistical models to evaluate risks and determine
appropriate coverage for policyholders. These models help predict the
likelihood of claims based on various factors.
• Automated Underwriting: In some cases, underwriting can be fully
automated. Computers can process customer data, analyze risk profiles,
and offer policies without human intervention.
• Predictive Analytics: By analyzing historical data, insurers can predict
trends and assess future risk more accurately, which leads to better
pricing models and better risk management strategies
 PRICING AND CUSTOMER
ACTUARIAL
MODELING RELATIONSHIP
• Actuarial Software: Computers are critical in MANAGEMENT(CRM)
• Communication Tools: Insurers use
actuarial tasks, where professionals use computer-based communication tools (e.g.,
software tools to calculate premiums, emails, chatbots, and automated phone
determine reserves, and estimate future systems) to engage with customers, handle
liabilities. Actuarial models help assess risks inquiries, and provide real-time updates on
based on vast datasets, leading to accurate claims and policy statuses.
pricing of policies • Personalized Services: With CRM software,
• Data Analysis: Large datasets are analyzed insurance companies can analyze customer
using advanced statistical models and behavior and preferences, offering tailored
machine learning techniques to understand products and services that fit individual
trends in claims, mortality rates, or other risk needs.
factors that influence pricing.
 MARKETING AND SALES
• Digital Marketing: Computers help insurance companies implement digital
marketing strategies (e.g., social media, email campaigns, SEO) to reach a
broader audience and attract new customers.
• Online Quoting Systems: Insurers offer online tools that allow customers to
get quick, accurate insurance quotes based on their personal information
and preferences.
• Sales Automation: Computers automate the sales process, helping agents
track leads, manage customer interactions, and close deals more effectively
through digital tools and platforms.
REGULATORY COMPLIANCE REINSURANCE
• Risk Modeling and Simulation: Computers are • Reinsurance Analytics: Computers are used to
used to simulate various risk scenarios and analyze the exposure of insurers to large losses
predict potential outcomes. For example, and calculate the appropriate amount of
insurers can use computers to model the reinsurance coverage needed. Reinsurers and
financial impact of natural disasters or economic insurers both rely on computer models to
changes. assess risks and pricing strategies for
• Catastrophe Modeling: Advanced software reinsurance contracts.
allows insurers to model natural disasters (e.g., • Automated Settlements: The settlement of
hurricanes, earthquakes) and assess the claims between insurers and reinsurers is
potential impact on policies. This helps insurers streamlined with the help of computer systems
understand exposure to catastrophic events and that track the financial transactions and
allocate reserves accordingly. performance of policies.
ARTIFICIAL
INTELLIGENCE AND ONLINE
MACHINE LEARNING ACCESS
• Chatbots and Virtual Assistants: Insurers use • Online Portals: Insurers also provide web-
AI-powered chatbots to interact with based platforms for customers to access their
customers, answer queries, and guide them insurance information, download documents,
through policy selection, claims filing, or other and track the status of claims.
insurance processes.
• Claims Prediction: Machine learning algorithms
help predict the likelihood of claims based on
customer profiles and historical data, enabling
better risk mitigation strategies.
JOB OPPORTUNITIES
There are a variety of job opportunities in the insurance field across different sectors, including sales, claims,
underwriting, risk management, actuarial science, and customer service. Here are some of the common job roles
and areas in the insurance industry:

• Insurance Agent/Broker: Sell insurance policies to • Insurance Analyst: Analyze data related to claims, policies,
individuals and businesses, helping them find coverage that customer trends, and market conditions to help insurance
suits their needs. companies improve their products or pricing.

• Underwriter: Assess the risks of insuring potential clients • Insurance Marketing Manager: Develop marketing strategies to
and decide on policy terms and premiums. They analyze data promote insurance products, including digital campaigns,
to determine the level of risk involved in a policy. advertising, and outreach programs.

• Claims Adjuster: Investigate insurance claims, determine the • Compliance Officer: Ensure that the insurance company follows
extent of liability, and help assess damages or losses. They all regulations and legal requirements. They monitor the
decide the amount the company will pay out on claims. organization’s practices to minimize legal risks.

• Risk Manager: Help organizations identify, assess, and • Insurance IT Specialist: Manage the technology infrastructure
mitigate risks to reduce potential losses. This can include for insurance companies, including cybersecurity, software
financial risks, natural disasters, cyber threats, etc. development, and system integration.

• Customer Service Representative: Provide assistance to • Health Insurance Specialist: Specializes in selling or managing
customers with their insurance policies, help answer health insurance policies, helping customers understand their
questions, handle billing issues, and resolve claims. healthcare needs and selecting the right coverage.
INSURANCE COMPANIES IN INDIA
India has a vibrant and competitive insurance sector, featuring a mix of both private and public players. The top
insurance companies in India are well-established, with strong market positions, a wide range of products, and
expansive customer bases. Here are some of the leading insurance companies in India:

• Life Insurance Corporation of India (LIC)

• HDFC Life Insurance
• ICICI Prudential Life Insurance
• SBI Life Insurance
• Max Life Insurance
• Tata AIG General Insurance
• Reliance General Insurance
• Bharti AXA General Insurance
• Star Health and Allied Insurance
• Aditya Birla Sun Life Insurance
CONCLUSION: The Future of Insurance
Technology
Ongoing Impact

• The integration of computer in the insurance industry is transforming policy management and claims
processing.

Potential for Future Advancements

• As technology continues to evolve, we can expect further advancements that will enhance efficiency,
improve customer experiences, and drive innovation in the insurance sector. The future of insurance
technology is bright, and its impact will only grow stronger.
THANK YOU