Literature Review on Insurance Management System Essay

ABSTRACT insurance organisation automates the overseement of indemnification activities, which involves define Policies, Schemes, policy Specifications, indemnity Terms and Conditions, Policies registrations by the customers, Facilitates the Premiums Flexi-Pay modes, form _or_ dodge of government Bonus in Flexible periods. The Agents atomic number 18 involved in the process of the Customer Policy registration and the Com leave offions atomic number 18 based on the targets achieved by the Agents. redress governing body withal maintains the database of the Branch Managers who deals with the Agents which in turn deals with the Customers. Before developing this activity each activities done manually, then all the activities take more endpoint and excessively take more manpower. Commission, interests, cods calculate manually, based on this manual problem some throwaways calculate the wrong All related selective in bodyation passed one branch to a nonher branch thr ough courier. Sometimes miss the important documents. So these problems overcome when we go away develop the remains. This system of rules is actually helpful to automation of entire Insurance system and also reduces the time and manpower.1. CHAPTER ONE 1.1 INTRODUCTIONInsurance is the most(prenominal) commonly mechanism of managing bump. The term find is defined as the possibility that positive expectations of a close oriented system will not be fulfilled. Risk is generally classified into two broad categories -Speculative Risks which may sum up in spoiled losses or sometimes speculative profits as well. -Pure risk of infections which ar fortuitous in nature and will potentially bring in only losses. Insurance even ups only pure risk with an element of precariousness astir(predicate) their occurring, sound restitution caution system aims at optimisation of cover for economical cost and also ensuring avail big businessman of tribute when it is most subscribe toe d. An policy transaction has always been viewed purely in monetary damage i.e. the fellowship paying a consideration called amplitude and in takings receiving a promise to be compensated monetarily, for the losses suffered due to work of insured perils. However, the concept of restitution focal point system is much wider in scope than the mere financial implications of be and benefits of an indemnity transaction. Background of the flying fieldInsurance Market consists of the buyers of redress policy and the sellers together with the intermediaries (agents) who bring the two together. In addition there atomic number 18 also the regulators, re gravelative bodies or organizations, consultants and practiced advisers which are part and parcel of the market. The BuyersAnyone who has valid insur able interest i.e., lawfully recognized relationship with property or pecuniary interest, lav policy broker their interest. The relationship may get hold through makeership, p art-ownership or responsibility for goods, or liability to pay damages or certain(prenominal) benefits. In Nigeria the buyers of insurance can be segmented as follows Individuals and familiesGovernments (federal, state, local) and their agenciesParastatalsMultinationalsConglomeratesManufacturing industrial concernsSmall and intermediate scale industriesBanking assiduityHealth institutionsTourist and hospitality industries, hotelsTransport perseveranceOther corporal bodiesEducational institutionsOil and energy industryFor market purposes the buyers can further be segmented to suit the strategy of the insurer, or the insurance agent. The SellersThe sellers or suppliers of insurance are the insurance companies and the reinsurance companies. At array there are about 118 registered insurance companies and 5 registered reinsurance companies. Most of the insurance companies are integrate pursuant to Companies and Allied Matters Act 1990. About 106 of them are private control liab ility companies while the rest are semipublic companies. About 60 companies underwrite life assurance business with 5 operating as specialist life offices. The reinsurers provide technical earnest and capacity for the insurance companies and do not supply insurance straight to the consumers. The Intermediaries (Agents)The intermediaries are mainly insurance brokers and insurance agents. There are 350 registered insurance brokers and about 15,000 insurance agents. The different attributes of agents have been described earlier in chapter eleven. Nigerian insurance market has been described as brokers market beca engross this instant brokers sway over 90 per cent of the premium income, leaving slight than 10 per cent for insurance agents, and even take merchandising give by insurers. However, insurance agents dominate the individual life insurance market. The banking industry has fuck off a formidable channel for distributing insurance services not inescapably as intermedi aries, but by facilitating a form of right away marketing by insurers.Participation by banks has also thus do book merchandizing of those insurance products possible. To enrich some of the financial products banks offer certain insurance protection as additional benefits. For example an investor is promised threeor quadruplet times the capital amount invested in case of death, salary of benefits in the event of accident, payment of childrens school fees, and insurance cover for goods bought on credit. To meet much(prenominal) obligations, they apply part of the interest due to the investors to bargain for insurance on their behalf from insurance companies. This is however different from linguistic universal banking which implied direct involvement in insurance broking and underwriting.STATEMENT OF THE PROBLEMSince risk as formed an integral part of our world today, the need arise for insurance in other to combat such risk in our society. 4 major(ip) problems arises when try ing to create a system to manage such risk, they are risk identification, evaluation, control and financing. The multi disciplinary nature of risk management requires input from all the arrears of the organization. Therefore, the task of identifying and evaluating risks is a problem. Risk control including avoidance and reduction clearly yields within the ambit of corporate sentry duty policy. Protection of property and soulnel through effective risk control measures, assumes great significance, particularly in the light of the opportunity costs due to occurrence of a risk (i.e. accident).Risk financing has unquestionable into an important technique of effective risk management, where by costs and benefits of different alternatives are analyzed before arriving at the final decision on what type of insurance to be used. The existing system is the manual system. The manual system is prone to error. It is time consuming. It is real difficult for a person to produce the report. Th ere are chances for changing the scheme report and do malpractice. This system involves a lot of manual entries with the applications to perform the desired task. exercising of papers in the payment process leads to less efficiency, less the true and less productivity. Increasing expenditure for papers shuffling and storage.Increasing labours and because errors.Less control of Amounts.Time delay between the payment and its receipt.Persons who are present in different part of the world cannot transact streamlinedly.1.2 significance OF THE SYSTEMThis system is an online micro insurance Analysis and information management system that provides light(a) access of information regarding the sight and resources of insurance. This site is not a static site but with wonderful dynamic facilities interchangeable search tools for insurance awareness articles, guidelines, illustrations through images for visitors. This site also provides some(prenominal) dynamic features. The developed sys tem should allow admin users to register insured persons with their name, examine of birth, residence address, medical history and also policy details. After registering all the insured persons, sacksite should provide management facilities like delete un sine qua noned persons data. And also should provide awareness to the visitors about micro insurance through articles. Objectives of the systemThe system would be able to perform two main neutrals which areFunctional and qualitative objectives. The functional objectives of the system are1.Enable users to select what good-natured of risks is to be insured2.Cost of such insurance3.Registration of customers4.Show the benefits of using such type of cover5.Explain what insurance policy in general is available.The qualitative objective of the system is mainly to define the corporate insurance philosophy, firsthand noesis of the risk involved2. CHAPTER TWO2.12.2PROPOSED SOLUTIONPROPOSED SYSTEMThe proposed system is designed to elimin ate the drawbacks of the existing system. It is designed by keeping to eliminate the drawbacks of the present system in order to provide a permanent resolution to the problems. The primary aim of the new system is to speedup transactions. The report is alert for the schemes and implemented by the concerned officials. Since the advent of Online Insurance services in the Middle Ages Policy Agents andpolicy holder have used paper-based official document to move money between Insurance transactions. It comes as no affect to one that when everything is being converted to computerize.Already the business has to global with the flood tide of Internet. Now, no more the individual aims at the local market is also just a click of button away. Dozens of companies are in the work to convince auction and bidding that a pot of Policys awaits those who conduct their business on the Internet. In this fast race of business and moneymaking, no country, no comp whatever and no individual want to fall back. Everyone wants to lead the group. consequently, everyone is trying to make the best use of Internet.The insurance company provides Group Polices to employees of various small and speciality sized companies that registered with it. A group policy is one, which an employer provides to its employees. An agent is responsible for getting the client companies establishing a relation with the insurance company. According to hisher need, the policyholder can choose from various products available. The insurance company needs to keep track of details of its target companies, agents, policyholders, their premium payments and the various products that are available with it. Hence it is under tremendous crush maintaining their day-to-day activities, which is currently being done manually. Entire records have to be updated timely even a slight mistake could complicate things. It is very difficult to handle bulk data since human memory is weaker than electronic counter part.It is time consuming to summarize these details to produce the reports. Hence there is need for an automated system, which can efficiently manage the companys records, provides instant access and one that improves the productivity. As a dissolving agent of this automated system, the activities of the company are performed with in the stipulated time and the reliable and efficient service is ensured to its users. The part of the proposed system contain the following 1)Agent Registration form New Agent gives their information like, Name, password, Ac no, bank, working details, age, sex, address, e-mail id. 2)Policy carrier Registration form New Policy Holder gives their information like, Name, password, Ac no, bank, Organization, Occupation, age, sex, address, e-mail id. 3)Admin form Admin have provision to view all Agent, Policy, and Policy Holder information.First Admin enter their name and Id then only they can access. And also admin have the provision to view, Modify, Delete and inse rt the Policy, Policy Holder, and Agent. 4)Agent stock This module is used for agent to view all details about their policy holder/clients and also view their own personal details. 5)Policy Holder Form This module is used to Policy Holders. They can view their own personal details when login into the Policy Holder module.Fig 2.2.3 dataflow in the system2.3 ADVANTAGES OF USING THE SYSTEMMortgage Redemption- The system act as an effective tool to cover mortgages and loans taken by the policy holders so that in case of any unforeseen event, the burden of repayment does not fall on the bereaved family. Risk cover -life is full of uncertainties in this scenario the use of the system ensures that one enjoys a good quality of life against any unforeseen event. Planning for life stage needs-life insurance provides financial yield in the event of untimely death but also acts as a long term investment. You can meet your goals, be it your childrens education, their marriage, building your dr eam home or planning a relaxed retired life, correspond to your life stage and risk appetite. Traditional insurance policies i.e. traditional giving plans, offer in-built guarantees and defined maturity benefits through variety of product options such as money back, guaranteed cash values.Protection against rising health expenses-with the system available, customers can choose from a wide range of plans that would offer the benefits of protection against critical diseases and hospitalization expenses. This benefits has assumed critical importance given the change magnitude incidence of lifestyle diseases and escalating medical costs. For safe and profitable long-term investment-it builds a long-term nest egg instrument, also ensures that the customers have a good savings habit. Insurance is a highly regulated sector, the regulatory body,through various rules and regulations ensures that the safety of the policyholders money is the primary responsibility of all stakeholders. Peac e of head teacher When consumers buy an insurance policy, they can achieve peace of mind.There is a comfort in knowing there is a certain measure of protection from unforeseen tragedies and losses. Asset Protection Certaintypes of insurance policies are designed to protect assets such as homes, cars, boats and other valuable glaring items. The policies will repair or set back these things if they are lost or destroyed. Physical Protection -Some insurance policies are structured to protect the body. In the event that a person is injured, disabled or otherwise physically harmed, these products will compensate for those damages. Income Protection-There is insurance policies available that will protect the ability to earn a living. If, for some reason, a worker is no long-life able to continue with gainful employment, these policies can be structured to replace a majority of lost income. Lifestyle Protection-A certain type of insurance is designed to ensure that the lifestyle to whi ch a family has become accustomed will continue for a certain period if a tragedy occurs and the major wage earner in the household is no longer able to produce an income.2.4 DISADVANTAGES OF USING THE SYSTEMThe system has the following drawbacks.Every particle organization has its own data structureDue to lack of modify data structure, it is very difficult to merge the data to analyze the statistics nasty to search for a dataPossibility of duplicates, etc2.5 CASE STUDY Nigerian INSURANCE MARKETInsurance Market consists of the buyers of insurance and the sellers together with the intermediaries (agents) who bring the two together. In addition there are also the regulators, substitute bodies or organizations, consultants and technical advisers which are part and parcel of the market. In Nigeria the buyers of insurance can be segmented as follows Individuals and familiesGovernments (federal, state, local) and their agenciesMultinationalsConglomeratesManufacturing industrial concer nsSmall and medium scale industriesBanking industryHealth institutionsTourist and hospitality industries, hotelsTransport industryOther corporate bodiesEducational institutionsOil and energy industryThe sellers or suppliers of insurance are the insurance companies and the reinsurance companies. At present there are about 118 registered insurance companies and 5 registered reinsurance companies. Most of the insurance companies are incorporated pursuant to Companies and Allied Matters Act 1990. About 106 of them are private limited liability companies while the rest are public companies. About sixty companies underwrite life assurance business with five operating as specialist life offices. The reinsurers provide technical security and capacity for the insurance companies and do not supply insurance directly to the consumers. The banking industry has become a formidable channel for distributing insurance services not necessarily as intermediaries, but by facilitating a form of direct marketing by insurers.Participation by banks has also thus made mass merchandizing of those insurance products possible. To enrich some of the financial products banks offer certain insurance protection as additional benefits. For example an investor is promised three or four times the capital amount invested in case of death, payment of benefits in the event of accident, payment of childrens school fees, and insurance cover for goods bought on credit. To meet such obligations, they apply part of the interest due to the investors to purchase insurance on their behalf from insurance companies. This is however different from universal banking which implied direct involvement in insurance broking and underwriting. And most of the activities of insurance between the individuals and such companies are done manually but with the creation of a web based system this could save time in transaction.3. CHAPTER THREE 3.1 final stageEffective insurance management lies in balancing the costs and benefits of insurance, through optimizing the coverage at economical cost and further through advised and careful retention of risks within the world, This isprecisely where the Online Insurance supports and improves many of the spirit functionality of the insurance organization i.e. insurance project helps in quick easy monitoring of the reports that have been automatically generated as and when the admin and policy agent performs transactions in the system. Using such a system helps the organization in minimizing the time consumed in fulfilling the day-to-day functionalitys and cutting down the expenses incurred on the same. It must also be remembered that insurance is a method of transferring the financial impact of risk and the risk itself. Hence the basic responsibility of the system is to act as a guild in risk management.3.2 recommendationWith the internet already in vogue, the government should allow reduce tariffs on web usage in other for easy communication with people who would need such systems. With increased technologies around the world there is need for accessibility to such web based technologies and system. Since the system involves risk management there is need for individuals to have reasons to have their businesses and life insured as this will enable them use such insurance management system.REFERENCES1.WIKIHOW.COM2.WIKIPEDIA.COM3.Seal, R. A. Insurance for Libraries Part I. Conservation Administration News no. 19 (1984) 8-9. 4.Seal, R. A. Insurance for Libraries Part II. Conservation Administration News no. 20 (1985) 10-11, 26. 5.EHOW.COM