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.

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.