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IT in the Insurance Industry
Today the companies are actively pursuing new IT initiatives, such as, data ware housing, e-commerce and componentisation. The objective is to get clarity around the products channels and service features.

This in turn, will help in designing the distribution blueprint so that the right products reach the right customers through the right channel in the shortest possible time. With the players competing to provide a host of financial services there is bound to be a lot of mergers and acquisitions. IT providers will play a key role in the areas of system integration reengineering and systems integration.

IT providers in such scenarios can build suitable interfaces for seamless communications between the two systems. it vendors should be able to identify and eliminate these so that the overall system efficiency is increased. Companies are also looking to migrate from the legacy systems to the client server environment.

Y2k in the Insurance Industry

Insurers say the biggest exposure they face is the Y2k computer problem. Unanticipated liabilities in E&O (errors and omission) and claims are a major concern. The laws in place to deal with the breakdown in Y2k systems are inadequate.

To take a stock of the situation in the area of Y2k compliance:

• Y2k remediation is almost complete and the remaining work is in the area of testing and simulation. Tools like warp and regression testing are being used in the process.

• Property and casualty companies are more prepared than the life and health insurance companies.

• Scale of operations does not translate into y2k readiness and the complexity of companies operations have a role to play.

• Preparations of the vendors and other concerned parties is also a crucial issue.
Data Warehousing and Insurance Industry

• Globalisation and increased consolidation are prevailing upon the insurers to move from the automation age to the information age at an unprecedented pace. Leading edge companies are looking to data ware housing and business intelligence to unblock the vital information in their corporate databases. Today’s evolving insurance landscape requires a fresh arsenal of tools to compete.
 
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