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2011

EPS Assignment 1

Submitted By: Hitesh Dudani MBA (tech) Telecom Roll No 407

Contents
Insurance Industry in India............................................................................................................................ 2 ERP in Insurance firms in India ...................................................................................................................... 2 Reducing the procedures .......................................................................................................................... 3 Rectifying Information Flaw ...................................................................................................................... 3 Performance of the Agents are Checked .................................................................................................. 3 Insurance Industry Expectations from ERP Systems ..................................................................................... 3 Country Specific Expectations ................................................................................................................... 4 Case in Focus: AEGON Religare Life Insurance ............................................................................................. 5 Introduction to AEGON Religare ............................................................................................................... 5 IT solutions required at AEGON Religare .................................................................................................. 5 ERP solutions by Oracle: ........................................................................................................................... 5 Oracle Business Intelligence System for Insurance .................................................................................. 6 Cost Savings .......................................................................................................................................... 6 Revenue Generation ............................................................................................................................. 6 E-business suite 11 ................................................................................................................................ 6 Appendix ....................................................................................................................................................... 8 Conclusion ..................................................................................................................................................... 9 References .................................................................................................................................................. 10

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Enterprise Resource Insurance Industry


Insurance Industry in India

Planning

in

The story of insurance is probably as old as the story of mankind. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 19051907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. IRDA is Insurance Regulatory Development Authority, has been set up to protect the interests of the policy holders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.

ERP in Insurance firms in India


With the advent of globalization, one of the main industries which are booming is the insurance industry. Many corporations all across the world are now venturing into the insurance industry. ERP dramas an significant role in this industry for streamlining the small and the tall operations, Especially in three areas which are very vital this Enterprise resource planning has executed a important operate in this business sector. For the betterment and consideration of the business ERP has facilitated coordination between the insurer and officers via outlining the complications of both the fields. ERP has provided the insurer and the officers a common platform. By this, now it has become possible to keep eyes on the agents and the ERP has eased the transaction procedure also. Insurance fraction is well known for inefficiencies and procedural delay. ERP has contributed this fraction to curb this problem. ERP has contributed the defence fraction on varied issues. Some of them are-

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Reducing the procedures


It was very difficult for the insurance businesses prior to ERP to go frontwards with techniques in time. It compiles the computing impairs, answering contentions, difference between insured worth and loss in time adjacent litigations. With the assist of Enterprise resource planning software the knowledge of dissimilar departments are included in one regular knowledge base. This has solved the load of the tedious job. In insurance business the dissimilar departments like answering contentions and litigations do not trust each other due to which efficiency is transformed in their departments.

Rectifying Information Flaw


In insurance sector executives are responsible for receiving the facts of each and every tiny process. If the processing knowledge is delayed the executives cant go forward and do the needful. Insurance corporations are invariably at the courts mercy and in a helm. Many assertions of the insurance are at the courts intervention. They have to reward the price of litigation even whether the assertions are in their favor. ERP is able to solve these complete troubles very simply and it also saves the cash, and price of knowledge of the company. Insurance sectors are thereby facilitated via the ERP to withdraw all the setbacks of the company.

Performance of the Agents are Checked


The noteworthy component of the insurance sector is the agency. Selling, marketing and compensating service are the noteworthy aspect of an insurance agent. After the intervention of ERP each and every transaction is updated. This rung has alleviated the insurer also. So later the intervention of the ERP now, there is a transparency in the insurance sector. Everyone is bringing the area to know each and every thing come seal the insurer and the agent.

Insurance Industry Expectations from ERP Systems


Insurance carriers face more regulatory, wares, and risk-based tests in todays turbulent marketplace, but the best contest insurers face is the skills to promptly and effectually bring forth and disseminate their products. Capturing seller intellectual portion and entry to the market portion they manipulate is the essential competent superiority for vindication carriers today. Increasing seller prospects for carrier tempo, unrestrained, and service requires carriers to re-examine all characteristics of dissemination agencies approach and operational readiness, principally in the environs of Enterprise Incentive Management. With ERP for Insurance, you can acclimatize rapidly to altering desires while sustaining the command and visibility essential to double-check money-making growth. Our answers incorporate the whole protection worth string of connections from assemblage of premiums through fee of claims. ERP for Insurance

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carries facts and numbers transparency, facts and numbers integrity, and mighty analytics for tactical and strategic conclusion producing and reporting.

Country Specific Expectations


In India, the insurance sector is growing steadily at a rate of about 10%. This growth rate has forces insurance firms in India to rethink their strategies in their fundamental operations in a bid to achieve more profitability in the growing industry sector. Insurance companies in India are changing their sales and distribution strategies to evolve in the insurance space. Internet, call centers and other such approaches are being incorporated by organizations to match the buying behavior of the consumers. These new buying habits have forced insurance firms to look for new product offerings to retain existing customers and for attracting new customers. Since a long time, Indian insurance firms have been relying on legacy technologies to meet the needs of compensation payments and reporting. The result has been poor compensation management. To overcome this deficiency in their operational practices, leading Indian insurance companies are demanding stae-of the-art technology approach to agent information and compensation management. Software vendors in India are venturing in to these newly developed requirements and are offering customized and industry specific ERP modules to meet the requirements of their users. A simplistic model for insurance operations management as expected by Indian insurance firms has been mentioned below:

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Case in Focus: AEGON Religare Life Insurance


Introduction to AEGON Religare
AEGON is an international organization dealing with pension and insurance plans and it has entered in to a joint venture with Indias leading financial services group RELIGARE to form an insurance firm in the name of AEGON Religare Life Insurance Company Limited. Benett, Coleman and company also hold a major stake in this particular joint venture. The firm has been established with the mission of attracting new and potential customers with the expanding global operation by striking a balance in the local approach. This joint venture started its multi-channel operations in India in July, 2008 with over 30 branches across the country. Higher quality of service is provided to the customers of AEGON Religare Life Insurance as established by the mission and vision of the organization. This is the first firm in India to offer policy servicing on the phone via Interactive Voice Response System (IVR) and it issues a T Pin for customer authentication. It also offers medical report in the policy kit. Basically joint venture of three companies AEGON 26% stake RELIGARE 44% stake B&C 30% stake

IT solutions required at AEGON Religare


The technology and operations infrastructure of AEGOn Religare needed some transformation and therefor it needed an information system to meet the financial service requirements as well as claims management of the organization. After publishing the Request For Proposal (RFP) for these required modules the company zeroed in on the Oracle E-Business suite 11, on Oracle database9, using Oracle general ledger, fixed assets and cash management as well as the claims management module. The organization is also favoring the plans of integrating the investment management system and the box management system to meet the additional service and operations requirements of the organization. AEGON had been regularly using Oracle business intelligence modules for supplementing their business and operational practoces and this prompted the use of this same vendor for offering services to this joint venture in India.

ERP solutions by Oracle:


Oracle Insurance Business Intelligence enables insurance organizations to become truly insight-driven and customer-centric. The solution is comprised of an enterprise, insurance-specific data warehouse (Oracle Insurance Insight) and a powerful analytic application (Oracle Business Intelligence Enterprise Edition) with pre-built insurance calculations, dashboards, and hundreds of metrics and key performance indicators (KPIs). A key technology driver among insurers today is predictive analytics, and Oracle Insurance Business Intelligence uses guided analytics to lead users along a path to discovery and action based on real-time business conditions.

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Oracle Business Intelligence System for Insurance


AEGON Religare wanted a systems to integrate their business and not just across departments but also deeper in to each line of their businesses. Oracle offered the following benefits for AEGON Religare. Cost Savings Claims Management: the average figures suggest that 70% of each premium rupee earnt goes towards the claims cost and thus this particular model offered by AEGON Religare helped implement effective control claim reserves and measures to contain the cost. It also helps to manage o Claims age, loss code and region o Average expense amounts, ratio of expenses paid to total incurred o Reserves adequacy ratios Fraud detection: this particular module enhances the warehousing capabilities of the system and helps integrate the information from multiple sources in to a single data repository. This eventually helps in improving the efficiency and the effectiveness of detecting frauds thereby reducing the costs of the entire system Operational management: This helps the center managers to manage the real time traffic related to policy claims, enquiry calls and service levels.

Revenue Generation Underwriting trends: this module is used to understand the underlying trends lying in the business portfolio of the organization and therefore helps in improving the chances of the organization to exploit opportunities in the new market. Pricing Analysis: Using the pricing analysis model offered by Oracle helps not only in the analysis of myriad data but also helps in exporting the financial data to the spreadsheets for the actual pricing scrutiny of various products and services. Sales optimization: This helps the sales personnel to identify consumer behaviors and thus customize insurance policies and plans to meet their buying behaviors. This enables the firm to sell and cross sell their products in multiple lines of businesses. E-business suite 11 Key Modules Billing Payments Collections

This particular suite helps in forecasting the cash flows in the organizations and helps reduce the losses in the revenue management inefficiencies. Work flow capabilities help in achieving for the firm better resolution thereby reducing lead times in responding to customer requests.

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Key features

Multi-line support on one system Eliminates the need to manage multiple billing platforms across the insurance enterprise Business rules separated from underlying code Empowers business users to make changes without IT intervention E-billing and Web-based, self-service options Provides support for agents, producers and other distribution channels, as well as customers Multi-lingual and multi-currency support Enables international carriers to comply with local regulations, improve speed-to-market, and reduce IT costs Consolidated billing Provides single, 360-degree view of all customer billing interactions, so customers with multiple policies receive a single bill Comprehensive account current and group bill processing Provides better support for the distribution channel and easy reconciliation for group bill, resulting in faster cash realization and lower write-offs Scalable for enterprise deployment Grows along with your business Brower-based with exposed Web services Extensible data model with unlimited user-defined fields Insurance-specific call center functionality

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Appendix

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Conclusion
Oracle provides a sustainable solution to manage the business processes at AEGOn Religare Life Insurance through its financial management and claims management modules. The booming insurance sector in India is well supplemented by the ERP solutions offered by some of the top software vendors.

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References
www.edocfind.com www.sribd.com www.erpresorce.com www.callidussoftware.com. www.technologyevaluations.com

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