User:Userceg/Insurance MMP

Insurance Mission Mode Project

Insurance is perceived to be a big opportunity business in India today. The huge population base and largely untapped market areas have provided a strong growth to this business in the last few years. Despite the impressive growth, the penetration of insurance in the country continues to be low. A large majority of the Indian population do not have Life and Health Insurance cover. This only highlights the growth potential of this sector in the coming years. Through the General Insurance Business (Nationalisation) Act, 1972 , 107 insurers were amalgamated and grouped into four companies viz. the National Insurance Company Ltd. , the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd.

The opening up of the Insurance sector for private participation has led to dynamic changes. In the last few years, a fairly large number of insurers, both life and non life, have established their presence in India leading to increased competition for the Public Sector Insurance Companies . Private players rely on technology to attract new customers through Innovative products, smart marketing and aggressive distribution. Customer service is the hallmark of this sector and hence it became imperative for the Public Sector Insurance Companies Public Sector Insurance Companies to computerize their operations and leverage the latest technology to provide a world class service experience to the customers through personalized products and services. With this view, the Insurance MMP was conceptualized.

Mission

The Mission of the Insurance MMP is

“Development of an Integrated Information Technology solution for better service delivery mechanism of Public Sector Insurance Companies”.

Stakeholders

The stakeholders of this project are the following:

• The customer i.e., the Insurance Policy Holders,
• The intermediaries i.e. agents, brokers, surveyors etc and
• The Insurance Company - The Public Sector Insurance Companies, namely National Insurance Company , The New India Assurance Company, Oriental Insurance Company and United India Insurance Company are wholly owned by Government of India

Objective

The objectives of the Insurance MMP are

• Improve Customer Awareness, through education and Information; Premium Calculation and online Receipt of Premium, Issue/Renewal of Policies; Processing of Claims and Settlement of Claims; Registration and Redressal of Grievances and Complaints
• Creation of a holistic Data-base of users of Policy holders; Agents/ Brokers; Surveyors/Advocates/Third Party Administrators /Other Agencies
• Creation of MIS through interconnecting all operating offices
• Business Process Re-engineering
• Enlarging business opportunities by refining Underwriting, Investment, Re-Insurance Programmes; Research and Development initiatives.
• Developing interface with Government and Regulator
• Facilitating efficient information sharing for effective decision making

Power of Services

As most of the companies had decentralized data bases, online transaction of business was not possible. This MMP aims to create centralized databases with full fledged provision for online transaction of business. The following services are proposed to be covered under the project:

• Online Issue / Renewal of Policies
• Premium Calculations and online Receipt of Premium
• Online Processing of Claims and Settlement of Claims
• Storing policy documents in soft form
• Improve Customer Awareness, through education and Information
• Online Registration / Redressal of Grievances (Direct from Customers)
• Online Registration / Redressal of Complaints / references from DPG / GOI / VIPs

Oriental Insurance Company Cuts Report Production Time by 30 days with Integrated System

Established in 1947, the Oriental Insurance Company provides general insurance services that cater for the urban and rural population across India through more than 1,000 offices and 23 regional centers. The company provides coverage for large corporate organizations and retail customers. In 2005, it started rollout of INLIAS (Integrated Non Life Insurance Application Solution), a centralized insurance application, as part of an IT initiative to become India’s top insurance company. The branch offices use INLIAS to issue policies for 213 products

The new solution enabled the company to issue around 35,000 policies and 64,000 transactions per day and to develop customized reports.

The system handled up to 6,600 concurrent users during peak hours and reduced document processing time for policies, claims and renewals. The portal allows insurance seekers to apply for insurance policies online.

New Process

The old processes at various insurance companies were based on manual intervention of the intermediaries, such as agents. The new process at various insurance companies participating in the MMP is based on the individual solutions implemented by them. The following is a generalized overview of the new processes in place:

• Claims Hubs have been created in major cities for Centralization of claims settlement for expeditious settlement of claims. Surveyors’ appointments too have been centralized.
• Motor Third Party (TP) claims management process has been redesigned for reducing payouts and clearing backlog of TP claims. Motor TP Claims are being digitized.
• Dedicated offices have been created to target Corporate Businesses and to provide differentiated service & organizational focus to corporate clients and government accounts.
• Dedicated offices have been set up to target Broker and Bancassurance Business.
• Agency channel has been re-energized through better development, support and aligned incentives.
• Various initiatives for improvement of Health Portfolio have been undertaken

• Rationalization of Third party Administrators (TPAs)
• Renegotiations of Service level Agreement (SLAs) with TPAs
• Rationalization of pricing of health products
• Modified processing for individual Mediclaim
• Implementation of ‘Single Window System’

• Separation of support and business roles has been undertaken; Regional Office team has been aligned with vertical structure at Head Office.

Implementation Strategy & Timelines

Public Sector Insurance Company	Solution	Implementation Timelines
Oriental	Integrated Non-Life Insurance Application Solution (INLIAS)	March, 2009
New India	Centralized Web based Insurance Solutions (CWISS)	March, 2011
United India	Comprehensive Online Real-time Environment (CORE)	March, 2011
National	Enterprise Architecture Solutions for Insurance (EASI)	March, 2011

Governance Structure

• The insurance Companies are board run companies and their individual IT plans have the approval of their respective Boards.
• The Companies are implementing the Projects independently and have fixed different time limits and milestones.
• IT Sub Committee frequently monitors the implementation of the Project.

Status

Activity	Oriental	New India	United India	National
Improve customer awareness	Available with implementation of INLIAS	Detail of Products available on website ; Call Center has been launched	To commence with CORE Insurance Solutions	To commence with EASI Solution
Premium calculation and Online Receipt of Premium	Available with implementation of INLIAS	Both Genisys and CWISS provides for automatic calculation of premium based on approved rates .	Total premium of Rs 30.42 crores collected through CORE. Claims payout of RS.14.28 crores from CORE. Rollout in remaining offices in 25 Regions before year end 2010.	188 numbers of Business centers have already been activated and 67 of old extension counters are already running .
On line issue /renewal of policies	Available with implementation of INLIAS	1002 offices live with motor module on CWISS All offices are live with Aviation and Business credit Shield Engineering module has been rolled out in 197 offices. Roll out of Rural module has also commenced with 333 offices rolled out.	1,26,100 policies have been issued in the CORE implemented offices. Policy issuance directly by dealer activated in Kochi and Chandigarh	Motor, Marine Policies started on pilot basis in Chennai, Bangalore. Identification of offices for 5% rollout completed.
Online Processing of Claims and settlement of claims	Available with implementation of INLIAS	Centralized claim settlement hubs for Motor at 28 RO Centres and in Goa and Vijayawada	Centralized claim settlement hubs at 9 locations	To commence with EASI Solution
Online Registration/ redressal of grievances	Available with implementation of INLIAS	Available on website	Available on website	To commence with EASI Solution

References

• http://gicofindia.com/gic_history.asp?code=history
  
• http://www.networkmagazineindia.com/200605/newsanalysis03.shtml
  
• http://orientalinsurance.nic.in/newspressho-inlias-completiontoi240409.htm
  
• http://www.newindia.co.in/products.asp
  
• National Insurance Company Limited
  
• Oriental Insurance Company Limited