Benefits of ERP in Insurance Sector

Published: 12th February 2010
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With the arrival of the globalization, the industry which is booming is the insurance industry. Many companies from all over the world are venturing into this insurance business. In developed as well as underdeveloped countries there are lots of scope in this sector. The contribution of ERP is great in the sector of insurance for simplifying the big and the small operations.



Especially in three areas which are very vital this Enterprise resource planning has played an important role in this business sector. For the betterment and interest of the business ERP has facilitated coordination between the insurer and agents by solving the problems of both the fields. ERP has provided the insurer and the agent a common platform. By this, now it has become possible to keep eyes on the agents and the ERP has eased the transaction process also. Insurance sector is famous for inefficiencies and procedural delay. ERP has helped this sector to curb this problem. ERP has helped the insurance sector on various issues. Some of them are-



Reducing the procedures-It was very difficult for the insurance companies prior to ERP to go ahead with procedures in time. It compiles the assessing damages, settling claims, difference between insured value and loss in time besides litigations. With the help of Enterprise resource planning software the data of different departments are integrated in one common data base. This has solved the problem of the tedious job. In insurance company the different departments like settling claims and litigations do not depend on each other due to which efficiency is improved in their departments.



Rectifying Information Flaw



In insurance sector executives are responsible for receiving the details of each and every minute process. If the processing information is delayed the executives can't go ahead and do the needful.



Insurance companies are always at the court's mercy and in a helm. Many claims of the insurance are at the courts intervention. They have to pay the cost of litigation even if the claims are in their favor.



ERP is able to solve these entire problems very easily and it also saves the money, and cost of information of the company. Insurance sectors are thereby helped by the ERP to remove all the set backs of the company.



Performance of the Agents are Checked



The important part of the insurance sector is the agency. Selling, marketing and giving service are the important aspect of an insurance agent. After the intervention of ERP each and every transaction is updated. This step has helped the insurer also. So after the intervention of the ERP now, there is a transparency in the insurance sector. Every one is getting the opportunity to know each and every thing about the insurer and the agent.



Read information on benefits of Web Based ERP System and Definition of ERP. Also read Benefits of ERP before you decide to implement an enterprise system in your organization.



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