Question

How have computers affected all of the following:

3. Insurance claims

Answer 1

The computers are affecting the insurance business in the following ways:

1. Business strategy: The computers have enabled organizations with greater capabilities. This can be utilized in the firm of making business strategies in a real-time environment. An insurance firm can make business plans and long term strategy to grow the business. This also involves simulation analysis which predicts the market scenario and hence check for various cost profit volume strategies.

2. Risk management: The computers have enabled technology processing in order to have multiple risk scenarios and choose an optimum strategy to make sure that the firm is prepared for any uncertain situation, This can be done with the help of an actuary who simulates various scenarios which can be risky for the firm.

3. Performance Evaluation: The performance evaluation of the previous year's operations can be done efficiently using the help of computers. The various parameters like attrition, claims processes, claims handled and new customers acquired can be analyzed by analysts which can give a performance report by comparing to a benchmark or previous years' performance.

4. Processing: The processing of the insurance applications, approval of insurances, claims and dispute resolution can be done faster using the computer-based technology. The manual work can be minimized and efficiency of the human resource will be increased manifold using the computers in the insurance business.