interim report

SUMMER INTERNSHIP PROGRAM A PROJECT REPORT ON
ROLE OF INFORMATION TECHNOLOGY IN IDBI FEDERAL LIFE INSURANCE CO. LTD.

BY:
SUNNY BEDI
13BSP
IBS MUMBAI

DECLARATION

I Sunny Bedi, hereby declare that the project work entitled “Role Of IT in IDBI Federal Life Insurance Co. Ltd.”, submitted to IBS BUSINESS SCHOOL MUMBAI , is a record of an original work done by me under the guidance of my project guide Mrs. Varsha Varde, Professor( Organization Behaviour and HRM) , This project work is submitted in the complete fulfilment of the requirements of PGPM Program of IBS-Mumbai. The results embodied in this project have not been copied from any other similar project report submitted to any university or Institute. I also certify that this work has not been submitted partially or fully for the award of any diploma or degree or associate ship or similar other title to any other university or institution.

Place : Mumbai
Date :21/04/2014

CERTIFICATE

This is to certify that the project entitled “Role of IT in IDBI Federal Life Insurance Co. Ltd.” being submitted to “IBS-MUMBAI” by Sunny Bedi for the award of the degree of “ DEGREE” is a bona-fide record of independent project work carried out by him under our guidance and supervision. This has not been partially or fully submitted for the award of any diploma or associate ship or similar other title to any other university or institution.

Mrs. Varsha Varde Mrs. Shanthi Yagyanath
Faculty Guide Company Guide
IBS-MUMBAI IDBI Federal Life Insurance co.

TABLE OF CONTENT
Declaration
Certificate
Abstract
Introduction
Literature Review
Organizational Study
Plans Information
Project Task
Company Profile
Product Profile
Research Methodology

ABSTRACT

The present paper is an endeavour to study the role of IT in enhancing customer reach in IDBI Federal life insurance co. ltd through marketing and selling of insurance products. This project is all about the research to find out IT factors which are responsible for the performance of the bank by optimizing the customer reach at IDBI Federal Life Insurance Co. Ltd.

INTRODUCTION
1.1 BACKGROUND
The developments in Information Technology (IT) are working wonders in all fields of activity. It has become possible to send and receive information almost instantaneously. If circulars do not reach the agents on time or doubts are not cleared quickly, or the agent does not have details of new plans announced in the press, the agent may have faced awkward situations with the prospects. These problems can be totally avoided with the use of IT. Insurers traditionally, have been quick to adapt latest advances in technology. This is happening in the areas of IT as well. The extent of IT application will vary from insurer to insurer.

1.2 OBJECTIVES OF THE WORK
To analyze the role of IT in IDBI federal Insurance.
To reach the sales target i.e. 15 in 3 months.
To gain knowledge about how to speak with the customers.
To know how to maintain relationship with the customers and how to get references from them.

1.3 SCOPE OF WORK
The insurance industry in India has gone through a revolutionary change after this sector was thrown open to the private sector in 1999 which brought professional expertise and management skills to procure insurance business. Again, since liberalization and globalization many foreign insurance companies have started operations in India after entering into joint ventures with Indian companies. Insurers are beginning to feel the heat of the competition already.
1.4 METHODOLOGY
The data used is to be collected through both primary and secondary sources.

Primary Data:
Data is collected by direct discussions with employees and staff in the office.

Secondary Data: i Existing Clients Record. ii Brochures. iii www.idbi.com.

1.5 LIMITATIONS OF THE STUDY
A lot of analysis is dependent on secondary data.
The study of data is limited to a specific branch.

1.6 LITERATURE REVIEW
The meaning of insurance is important to understand for anybody that is considering buying an insurance policy or simply understanding the basics of finance. Insurance is a hedging instrument used as a precautionary measure against future contingent losses. This instrument is used for managing the possible risks of the future.
Among all the hoopla, one factor that has brought sweeping changes in the industry in the manner it will work henceforth is information technology. It is perhaps the most significant development in the insurance sector today. Companies are redefining the way business was conducted so far. Traditional methods will have to be done away with and absorption of newer technologies will pave the way for improved efficiency and reduced costs. More transparency in operations and flexibility to change according to innovations in technology are the key factors for success in this industry.

ORGANIZATIONAL STUDY

VISION
To be the leading provider of wealth management, protection and retirement solutions that meets the needs of our customers and adds value to their lives.

MISSION
To continually strive to enhance customer experience through innovative product offerings, dedicated relationship management and superior service delivery while striving to interact with our customers in the most convenient and cost effective manner.
To be transparent in the way we deal with our customers and to act with integrity.
To invest in and build quality human capital in order to achieve our mission.

VALUES
Transparency: Crystal Clear communication to our partners and stakeholders
Value to Customers: A product and service offering in which customers perceive value
Rock Solid and Delivery on Promise: This translates into being financially strong, operationally robust and having clarity in claims
Customer-friendly: Advice and support in working with customers and partners
Profit to Stakeholders: Balance the interests of customers, partners, employees, shareholders and the community at large RESPONSIBILITY
IDBI strives to be a good citizen. Ethical, social and environmental considerations play an integral part in our business decisions. IDBI is committed to playing an active role as a community sponsor. It does this through a wide range of local sponsorships and through its global Chances for Children initiative, which provides access to primary education to underprivileged children in developing countries who would otherwise not have the chance to attend school.

PROJECT TASK
Data Requirement Analysis
The data required is about noticing the growing patterns of involvement of information technology in enhancing customer reach at IDBI Federal Life Insurance Co. Ltd.

Data Collection
The data is collected through primary and secondary data. The data is collected through primary data by doing field Survey in Maharashtra region. And secondary data through IDBI records like text books, websites etc. The scope of research is restricted to anywhere in India region and the research approach descriptive method.

Analysis and Interpretation
A survey of various customers at IDBI is conducted and the respondents are asked to answer the medium through which they gained information about the policy. The percentages of each response is the found out to see the total impact of Information Technology in making the customers aware of the policy.
Also, secondary data on the website and other reliable online sources is considered to find out the same.
The sample size of the population consists of Maharashtra and Rajasthan, thus not implying the results of the findings nationwide.

Research Questions
For the purpose of this study, the following relevant research questions were set:
i. Are customers aware of the use of IT facilities in their dealings [i.e. request for insurance coverage, filling of proposal forms and claim form, complaint lodgement, etc.] with IDBI? ii. Does the use of IT positively affect the performance efficiency of insurance programs at IDBI? iii. Will the incorporation of quality customer service delivery in the IDBI insurance market enhance performance level?

Findings
Table 1. Simple frequency percentage table showing responses to research question 1
ALTERNATIVES
RESPONSES
PERCENTAGE (%)
AGGREGATE (%)
Strongly agree
31
27.68

Agree
49
43.75
71.43
Undecided
27
24.10
24.10
Disagree
05
4.47

Strongly disagree
00
00.00
4.47
Total
112
100
100

As presented in the above table, 71% agreed to the question, 24% were undecided while 5% indicated their disagreement. This indicates that insurance companies provide their customers with information via IT network. Table 2. Simple frequency percentage table showing responses to research question 2
ALTERNATIVES
RESPONSES
PERCENTAGE (%)
AGGREGATE (%)
Strongly agree
31
27.68

Agree
59
52.68
80.36
Undecided
14
12.50
12.50
Disagree
08
7.14

Strongly disagree
00
00.00
7.14
Total
112
100
100

On aggregate, 80% of the respondents agreed that IT has continually improved the performance level of their organizations. While 13% were undecided, 7% expressed their disagreement.

Table 3. Simple frequency percentage table showing responses to research question 3
ALTERNATIVES
RESPONSES
PERCENTAGE (%)
AGGREGATE (%)
Strongly agree
52
46.43

Agree
34
30.36
76.79
Undecided
23
20.53
20.53
Disagree
03
2.68

Strongly disagree
00
00.00
2.68
Total
112
100
100

Responses to table 3 above proved that 77% were in support that providing customers with quality service delivery, in terms of prompt claims payment and flexible policy plans, will increase the performance of IDBI Federal Life Insurance Co. Ltd. Also, 20% and 3% indicated their indifference and disagreement. As expected, this shows that effective quality service delivery in insurance organizations results in increased performance.

CONCLUSION

This study attempts to find out how relevant and effective information technology is perceived in quality service delivery to customer and also, to examine its effect on insurance company’s performance at IDBI.
There was a time when the insurance industry was a pioneer in the use of information technology. Carriers were early adopters of mainframe computer technology principally because their work requires collecting large amounts of data and processing it according to the rules associated with the obligations conferred by an insurance policy. The industry since has lived with a "technology laggard" rap in the intervening years. But the latest focus of insurance company spending suggests that not only is the insurance industry shaking off its laggard reputation through the adoption of emerging technologies, such as cloud-based solutions, but that the data-intensive character of the industry may encourage future leadership in data management and analysis.
Conclusively, this study reveals that IDBI is on the proper path to adopt and effectively use information technology to improve customers’ service delivery and this will in turn affect firm performance positively. As suggested by these findings, insurance companies in Nigeria can better their customers service delivery process by investing more in information technology, providing IT training facilities to staff from time-to-time and educating their customers on the need for on-line transactions to ensure smooth, faster and quality service. All these would lead to increased profits.

REFERENCES

www.idbifederal.com http://www.insurancetech.com www.wikipedia.com http://www.slideshare.net/iaemedu/a-study-on-the-growth-of-indian-insurance-sector-15647898 http://www.idbifederal.com/AboutUs/Pages/Vision-and-Values.aspx http://www.ehow.com/facts_6790988_information-technology-insurance-sector.html

References: www.idbifederal.com http://www.insurancetech.com www.wikipedia.com http://www.slideshare.net/iaemedu/a-study-on-the-growth-of-indian-insurance-sector-15647898 http://www.idbifederal.com/AboutUs/Pages/Vision-and-Values.aspx http://www.ehow.com/facts_6790988_information-technology-insurance-sector.html