Project

On
Database Management Solutions for Insurance Industry

Session 2011-13

MBA Insurance 3rd Semester

Associate Professor

Roll Number: 362

National Law University

Dr. Manmeeta Saxena

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Yogesh Joshi

Submitted To :

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Submitted By:

Acknowledgment
This project work would never have been an achievable task, had we not been under the
great shelter of guidance of respected Maam Dr. Manmeeta Saxena. Her simplified
teaching technique based on examples has helped me to gain more understanding of the
subject. The very essence of the project work is the linguistic precision which has an
impact of conveying more details in least possible words. An ample use of various
reference readings has been very frequently made while compiling data for this project.
Such rich reading has been made available at hand by the treasure-like well maintained
library of the National Law University, Jodhpur. I am very much grateful to the library
staff of the university for their unfailing co-operation. I am very much under obligation to
mention here, the contributions of my batch mates who have, knowingly or unknowingly,
provided me the competitive edge which is the driving force of the whole labor and extra
labor put into the project. Finally, I feel very much gratified to the administration of the
National Law University, Jodhpur for providing comfortable environment and rich
infrastructure which has always been a facilitating stuff

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-Yogesh Joshi

Objective

An Insurance Industry whether any sole Insurance Company or any Insurance Brokers or
any Corporate Agents may have several record types, including:
-Customer with fields name and Salary
-Premium paid and Due amount at what date
-Insurance agent name and salary + Commission
-Claim Record including in-process and settled

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All of the above data is accumulates to a very huge amount and keeping this in form of
hard copies or on documents may cost very high not only in way of stationary cost as
well as time consuming even a different person to look after this collection and this has to
be kept for several years as per the guidelines issued by Authority (IRDA) without any
fail. For minimizing such difficulties using the Database Management Solution is the best
way
This research is extensively done to know how the various database management
solutions can be utilized in insurance organization for meeting these difficulties and can
benefit the organization to cut the cost because again there is check on expense done by
insurance companies by authority. \

Table of Contents

Acknowledgement

Objective

Chapter I

Introduction

Chapter II

Basic Data Models

Chapter III

Need of DBMS in Insurance Industry

Chapter IV

Major DBMS Solution & Providers in Market

Chapter V

DBMS Solution used in Beacon Insurance Brokers

Chapter VI

Functioning of SAIBA Online in Beacon Insurance Brokers

Bibliography

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Conclusion

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Introduction to DBMS

Database Management is an important aspect of data processing. It involves, several data

models evolving into different DBMS software packages. These packages demand
certain knowledge indiscipline and procedures to effectively use them in data processing
applications.
We need to understand the relevance and scope of Database in the Data processing area.
This we do by first understanding the properties and characteristics of data and the nature
of data organization.
Data structure can be defined as specification of data. Different data structures like array,
stack, queue, tree and graph are used to implement data organization in main memory.
Several strategies are used to support the organization of data in secondary memory.
A database is a collection of related information stored in a manner that it is available to
many users for different purposes. The content of a database is obtained by combining
data from all the different sources in an organization. So that data are available to all
users and redundant data can be eliminated or at least minimized. The DBMS helps
create an environment in which end user have better access to more and better managed
data than they did before the DBMS become the data management standard.
A database can handle business inventory, accounting information in its files to prepare
summaries, estimates, and other reports. There can be a database, which stores new paper
articles, magazines, books, and comics. There is already a well-defined market for
specific information for highly selected group of users on almost all subjects. The
database management system is the major software component of a database system.
Some commercially available DBMS are INGRES, ORACLE, and Sybase.
A database management system, therefore, is a combination of hardware and software
that can be used to set up and monitor a database, and can manage the updating and
retrieval of database that has been stored in it. Most database management systems have
the following facilities/capabilities:

addition and deletion of entire files.

Creating of a file, addition to data, deletion of data, modification of data; creation,

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Retrieving data collectively or selectively.

The data stored can be sorted or indexed at the user's discretion and direction.

Various reports can be produced from the system. These may be either standardized
report or that may be specifically generated according to specific user definition.
Mathematical functions can be performed and the data stored in the database can be
manipulated with these functions to perform the desired calculations.

To maintain data integrity and database use.

To create an environment for Data warehousing and Data mining

Three Views of Data

DBMS is a collection of interrelated files and a set of programs that allow several users to
access and modify these files. A major purpose of a database system is to provide users
with an abstract view of the data. However, in order for the system to be usable, data
must be retrieved efficiently. The concern for efficiently leads to the design of complex
data structure for the representation of data in the database. By defining levels of abstract
as which the database may be viewed, there are logical view or external, conceptual view
and internal view or physical view.
External view:
This is the highest level of abstraction as seen by a user. This level of abstraction
describes only the part of entire database.
Conceptual view:
This is the next higher level of abstraction which is the sum total of Database
Management System user's views. In this we consider; what data are actually stored
in the database. Conceptual level contains information about entire database in terms
of a small number of relatively simple structures.
Internal level:
The lowest level of abstraction at which one describes how the data are physically
stored.

EXAMPLE
In an Insurance organization, we may have several such record types, including among

-Premium paid and Due amount at what date

-Customer with fields name and Salary

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others:

-Insurance agent name and salary + Commission.

At the internal level, a customer, Premium account, or employee (insurance agent) can be
described as a sequence of consecutive bytes. At the conceptual level each such record is
described by a type definition, illustrated above and also die interrelation among these
record types is defined and describing the rights or privileges assign to individual
customer or end-users. Finally at the external level, we define several views of the
database. For example, for preparing the Insurance checks of Customer details, only
information about them is required; one does not need to access information about
customer accounts. Similarly, tellers can access only account information. They cannot

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access information concerning about the premium paid or amount received.

Data Models

Data modeling is the analysis of data objects that are used in a business or other context
and the identification of the relationships among these data objects. Data modeling is a
first step in doing object-oriented programming. As a result of data modeling, you can
then define the classes that provide the templates for program objects. A simple approach
to creating a data model that allows you to visualize the model is to draw a square (or any
other symbol) to represent each individual data item that you know about (for example, a
product or a product price) and then to express relationships between each of these data
items with words such as "is part of" or "is used by" or "uses" and so forth. From such a
total description, you can create a set of classes and subclasses that define all the general
relationships. These then become the templates for objects that, when executed as a
program, handle the variables of new transactions and other activities in a way that
effectively represents the real world.

Hierarchical Model
In a hierarchical model, data is organized into a tree-like structure, implying a
single upward link in each record to describe the nesting, and a sort field to keep
the records in a particular order in each same-level list. Hierarchical structures
were widely used in the early mainframe database management systems, such as
the Information Management System (IMS) by IBM, and now describe the
structure

of

XML

documents. This structure

allows

one

1:N

relationship between two

types

of

data.

This

structure is very efficient

to

describe

many

contents, ordering of paragraphs/verses, any nested and sorted information.

world; recipes, table of

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relationships in the real

However, the hierarchical structure is in efficient for certain database operations

when a full path (as opposed to upward link and sort field) is not also included for
each record.
Example:
Parentchild relationship: Child may only have one parent but a parent can have
multiple children. Parents and children are tied together by links called "pointers".
A parent will have a list of pointers to each of their children.

Network Model
In this model a hierarchical relationship between two record types (representing
real-world entities) is established by the set construct. A set consists of circular
linked lists where one record type, the set owner or parent, appears once in each
circle, and a second record type, the subordinate or child, may appear multiple
times in each circle. In this
way a hierarchy may be
established between any
two record types, e.g., type
A is the owner of B. At the
same time another set may
be defined where B is the
owner of A. Thus all the
sets comprise a general
directed graph (ownership
defines a direction), or
network construct. Access to records is either sequential (usually in each record

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type) or by navigation in the circular linked lists.

Relational model
The relational model is a simple model that provides flexibility. It organizes data
based on two-dimensional arrays known as relations, or tables as related to
databases. These relations
consist of a heading and a
set of zero or more tuples
in arbitrary order. The
heading is an unordered
set

of

zero

or

more

attributes, or columns of
the table. The tuples are a
set of unique attributes
mapped to values, or the rows of data in the table. Data can be associated across
multiple tables with a key. A key is a single, or set of multiple, attribute(s) that is
common to both tables. The most common language associated with the relational
model is the Structured Query Language (SQL), though it differs in some places

Entity Relationship Model

Entity Relationship model (ER model for short) is an abstract way to describe a
database. It usually starts with a
relational database, which stores
data in tables. Some of the data in
these tables point to data in other
tables - for instance, your entry in
the database could point to
several entries for each of the
phone numbers that are yours.
The ER model would say that

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you are an entity, and each phone

number is an entity, and the relationship between you and the phone numbers is
'has a phone number'. Diagrams created to design these entities and relationships

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are called entityrelationship diagrams or ER diagrams.

NEED OF DBMS IN INSURANCE INDUSTRY

In an insurance company various functions are performed like
Underwriting of various risks i.e. Fire, Engineering, Marine,
Burglary & Life etc. handling of claims regarding these
policies, Providing services at proper point of time with
promptly and efficient regard, providing information to clients
Etc. All these functions, now days, performed only through IT
to get the efficient and effective result along with cutting of cost
and by removing errors which were more prompt to errors
because of manual work.
We can evaluate the importance and need of DBMS solutions
for Insurance Industry by relating each function. This can be
elaborated as follows:

Underwriting:

A financial professional that evaluates the risks of insuring a

particular person or asset and uses that information to set
premium pricing for insurance policies. Insurance underwriters
are employed by insurance companies to help price life
insurance, health insurance, property/casualty insurance and
homeowners insurance, among others.

Underwriters use computer programs and actuarial data to

determine the likelihood and magnitude of a payout over the
life of the policy. Higher-risk individuals and assets will have to
pay more in premiums to receive the same level of protection as

Success Story of ICICI

Prudential
As ICICI Prudential
experienced rapid growth,
synchronizing customers,
business and financial
portfolio information across
multiple business channels
become a major challenge.
The company addressed the
challenge by creating single
source of data by through the
deployment of the Sybase
ASE transaction database
along with Sybase IQ
reporting database and by
keeping the data
transactional and data
reporting functions separate,
each system performs
optimally. This capability,
along with new report
generation capabilities,
allows the company to
improve its business function.

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a (perceived) lower-risk person or asset.

Services:

Service is the ultimate indicator on which the quality of the product provided by
insurance depends. An insurers claim practices are the primary services that the typical
individual or business needs. In addition, prompt, courteous responses to inquiries
concerning changes in the policy, the availability of other types of insurance, changes of
address, and other routine matters are necessary. Another service of major significance
that some insurers offer, primarily to commercial clients, is engineering and loss control.
Engineering and loss control is concerned with methods of prevention and reduction of
loss whenever the efforts required are economically feasible these practices also follows
the various information flow from insurer to client and vice versa also and use of various
software and techniques.

Claims:

An insurance claim is the actual application for benefits provided by an insurance

company. Policy holders must first file an insurance claim before any money can be
disbursed to the hospital or repair shop or other contracted service. The insurance
company may or may not approve the claim, based on their own assessment of the
circumstances
In present scenario many insurer uses the technology more for Claims as they provide
insured the service of intimating the claim directly on their website. UNIVERSAL
SOMPO General Insurance Ltd. provides this facility more efficiently and many more
insurers are also.

Research & Development:

Investigative activities that a business chooses to conduct with the intention of making a

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improvement of existing products or procedures. Research and development is one of the

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discovery that can either lead to the development of new products or procedures, or to

means by which business can experience future growth by developing new products or
processes to improve and expand their operations.

R&D is department which investigates that how various technologies can be used which

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will ultimately lead to efficiency of organization

Major DBMS Solutions & Solution Providers Prevailing in Market

Products Offered by CMC Tata Ltd.

GENISYS Configurator is a 3-tier web-based suite of components that addresses

the needs of a comprehensive insurance system covering underwriting, claims,
accounts, reports and queries, etc. All the components can be used together as an
integrated product or can be used individually to suit specific organizational
needs. GENISYS Configurator allows the users to easily and rapidly define new
insurance products, make changes to existing products and establish rules that
govern the products behavior. The greatest strength of the solution lies in its
flexibility and scalability.

GENISYS Configurator Broker Solution is addressed for brokers, travel agents,

intermediaries, etc. For Tata Business Support Services, CMC implemented
GENISYS Configurator Broker solution. Some general insurance companies
(United India Insurance, National Insurance, New India Assurance, Oriental
Insurance, ICICI Lombard and Royal Sundaram) in India had outsourced their
BPO operations to Tata Business Support Services (TBSS) for underwriting the
policies for new cars sold by Tata Motors dealers as well as subsequent renewals.
Tata Motors wanted to ensure that dealers underwrite the insurance policies by
using the GENISYS Configurator. The insurance companies BPO operation being
carried out by TBSS for all policies sold and renewed by Tata Motor Dealers.
GENISYS Configurator in TBSS provides insurance functionalities at Tata
Motors dealers end. CMC's scope of work is Software Implementation, Post
Implementation Software Maintenance and Technical Support Services.

GENISYS Re is a highly flexible application providing high degree of

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configuration catering to the entire reinsurance operations

Products Offered by CAPTERRA

Terrace ABS
Innovative agency management software for insurance agencies, wholesalers,
MGAs and carriers. ABS provides end to end capabilities for CRM, policy
administration, billing, servicing, claims tracking and premium accounting.
The software supports standard and custom 1) lines of business/coverage data,
2) reports, 3) screens and 4) integration. ABS is built on the very latest
Microsoft technology. It securely runs on your own in-house servers or on
your co-located cloud servers.

Agent Intelligence
Agent Intelligence is a cloud based insurance CRM and complete policy
administration solution. Agent Intelligence is available for independent
brokers and Agencies. Agent Intelligence offers full reporting including
customized reporting, commission tracking, fully integrated Calendar, policy
tracking, document storage and client tracking.

AgencyIntel
AgencyIntel is for agency owners. Our unique product is designed to manage
all aspects of your business. Our system offers the ability to track policies,
manage commissions, agents and documents with easy to use reports and
custom analysis is of paramount importance to every well-structured business.
One of the most important features with AgencyIntel is personal
customizations. Give us your ideas and let us make them a reality.

Products Offered by SYBASE

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Sybase IQ is an analytics server designed specifically for advanced analytics ,

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data warehousing, and business intelligence environments. Able to work with

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SYBASE IQ

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massive volumes of structured and unstructured data it is ideally suited to Big

Data. Distinguished from conventional databases by its column-oriented, gridbased architecture, patented data compression, and advanced query optimizer,
Sybase IQ is deployed in a wide variety of settings delivering unmatched
performance, flexibility, and economy in even the most challenging reporting
and analytics environments.

Sybase IQ has four times more customers than all other column databases
combined and wins more new customers in a year than other column
databases have in total

SYBASE ASE
Extreme transaction processing systems must support tens of thousands of
concurrent users with ultra-fast, nonstop performance on cost-effective,
standards-based platforms. ASE does all thatand more. Powering 24 of the
top 25 global banks and 46 of the top 50 top global banks and securities firms,
the ASE mission-critical enterprise database management system is known for
its rock solid reliability, superior performance and low total cost of ownership.

ASE key features include data encryption to protect from internal and external
breaches; partitioning technology for better performance and easier
maintenance; and, virtualization and clustering capabilities for continuous
availability and efficient use of resources. In-memory database technology
provides significant improvements in response time and throughput for high
data volume and high concurrent user organizations. And the addition of data
compression allows enterprises to reduce storage costs and increase

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performance on large and growing data sets.

DBMS solution used in Beacon Insurance Brokers Pvt. Ltd.

In Beacon Insurance Brokers Pvt. Ltd., where I went for summer internship,
SAIBA online and desktop versions are used for database management. This enables the
company to reduce their administrative cost and time both.

SAIBA Online Version:

Web based replica of SAIBA Desktop version.

Developed in asp.Net Framework 3.5,

Database used is Microsoft SQL Server 2005

Reporting through Crystal Report 12.0, which enables users to get versatile
reports.

Reports can be exported to PDF, MS Word, Excel, or RTF

Quotation management system is an added feature in this version.

You may also provide access to your customers to view their portfolio and
claim status.

Our Insurance Broking Management Software SAIBA is being used by more than 80
Insurance Brokers in India for their back office management needs as well as sales force
management needs. Apart from Insurance Brokers there are many Corporate Agents who

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are using SAIBA.

This existing software for insurance brokers SAIBA is broadly divided into 5 integrated
modules, which are:
1. Customer Acquisition and Relationship Management System (CARM):

Import customer database from excel file.

Tele-calling to customers

Marketing executive activity tracking, manage travel expense and manage

customer history

Performance & costing analysis for branch managers, marketing executive

and tele-callers based on targets, salary, expense and business done

Leads Management

Specific Campaign managements

Prospective Business Management

2. Quotations Management System:

Available only in Online Version of SAIBA

Preparation of Broker Slip

Sending Slips to Insurer for Quotations

Receiving Quote from Insurer

Comparison up to 5 broking slips based on quotation and insurers

credentials.

Sending Comparison of Quotes to Customer

Cover note book Management

Business Profile Management

Commission Reconciliation

Renewal Reporting

Claims Management

IRDA Reporting

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3. General Insurance (Non-Life Insurance):

4. Life Insurance

Business Profile Management

Premium Payments Reporting

Commission Reconciliation

Money Back Reporting

IRDA Reporting

5. Office Management:

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Inward/Outward Document Management

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File Management

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Functioning of SAIBA Online

Home Page

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Above snapshot is of home page of SAIBA online where after login operator can access
the functioning and can enter the data and also can retrieve the different data for different
purposes. Even on home page operator can set reminders and meetings if scheduled for
future.

Claims Management

Above snapshot is of Claims Management where a report for Non-Life claims is being
generated. As we can see that any operator where he is doesnt matter can access the data

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from anywhere in world and at any point of time.

Non-Life Policy Entry Form

Above snapshot is of Non-Life Policy Entry Form is filled by each and every detail of

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the insured once the policy is issued to insured.

Claims Management (Intimation)

Non-Health Claims

Above snapshot is of claims Management for Non health Claims where claim is entered
once it is intimated to Insurer and Broker. This can be entered from anywhere regardless

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of the location on operator.

Claims Management (Intimation)

Health Claims

Above snapshot is of claims Management for Health Claims where claim is entered once
it is intimated to Insurer and Broker. This can be entered from anywhere regardless of the

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location on operator.

Conclusion
The whole research can only be concluded by this that in present scenario importance of
IT and IT enable solution for database management are only drives which can make the
company on the way of success by way of minimizing the cost, wastage of time and error
while keeping the data and information. Various database solutions are there in market
with high profile providers which enables the Insurance Industry i.e. Insurer, brokers and
agents etc.to gain the competitive advantage over other competitor as well as facilitates

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with ease to various services for clients.

Bibliography

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www.google.com
www.wikipedia.com
www.saibaonline.com
www.irda.gov.in
www.beacon.co.in
www.scribd.com

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