What is the problem defination facing a car insurance company if it was run in a manual way ( without the use of computers ) [[ about 6 point please ]] and what are the benefits if it was turned into a computerised system.
thank you
Tags: point, Insurance, car insurance company, car, computerised system
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Calculating a rate is not simple; it would easier to let Mr. Computer help.
There is a lot of data to keep track of: have premiums been paid, has agent’s commission been paid, have claims been paid, people will sell a car and buy a new one which changes their rate, etc. This might work when you have two customers, but what happens when you have 100,000? This can’t be done manually.
My first agency was a manual agency.
There are two main issues: 1. it costs more in manpower (it’s much more labor intensive) and 2. it’s much more likely to lead to an e&o issue.
I used to have to type up an invoice, in five parts. One was the bill to the insured. Then I filed the other FOUR. For each bill, for each client. One went in the client’s file. One went to the agency accounts receivable file. One went into expirations, so we wouldn’t forget to renew a policy. And the last one, well, it’s been so long I don’t remember, but it went somewhere ELSE. So it’s tons more paperwork, tons more filing. Tons more opportunities for mistakes.
Obviously, once you computerize, there’s less paperwork – so one person can handle a bigger book of business. AND there are less chances for errors.
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