- Subhash Koirala
Since today’s era is the era of information technology, it is necessary to make the business of this sector efficient with the use of various components of security technology according to the time. In the past, due to the practice of not investing in information technology and risk mitigation, there was a challenge to analyze the information and data accurately due to the ambiguity and duplication of information, and in the present situation, various online and offline software are being used in the insurance sector.
Today, it is seen that the security system and technology are being used to show oneself as good by managing the proper budget. It can be considered that this technology is a procedural matter to maintain the security and confidentiality of the various information of the customers and the responsibility of the company towards their risk. In this context, the Insurance Board also seems to have tried to work in conjunction with the approved companies to move forward by exchanging information centrally and bringing uniformity in the information and using and analyzing the correct data.
At present, various companies are protecting information through different types of online software for doing business, but they are ready to show that they are information technology-friendly by using other types of online and offline software simultaneously. This has made it easier and more efficient for companies to work, as well as to bring various components of the working system into practice to use their favorable results.
It is not possible to assume that the use of software is completely technology-friendly. However, it seems that it can be technology-friendly in a sense only if it can make the most of this technology and conduct enough training to increase the ability of its employees to analyze the information they want and need, and make arrangements for the necessary information to be accessible to their own tables. Apart from this, the ability of the employees and the attitude seen in the workplace are also challenging the system every time.
Protecting the documents (dockets) is the first responsibility of the business after taking the insurance charge. But do the insurance businessmen or companies in Nepal have any concern about the security of the documents? In various studies and discussions with the stakeholders, only the matter has been raised, but the officials of the concerned department have not seen any concern. It is certain that there will be difficulty in protecting the documents as long as there is a tendency to put the work in the hands of others but to look for parts. In the example, if the dockets under any company are destroyed by fire or other natural means, there is no way to recover those dockets.
Without the docket, the company does not pay anything. Even if two or four rupees are paid. A few years ago, a fire broke out in the building of a life insurance company’s Narayanghat branch. Many shops were destroyed along with raw goods. It was reported that the loss of the company was less than that of others. Was it considered that the documents were protected if the dockets were destroyed in that case? Did the company decide to adopt any technology after that? These are just questions. No company has considered it appropriate to protect the documents except to keep the documents as dockets after the business is done. If you go to the docket room of the company, it seems that it has been arranged in the cabinet. After 10 or 15 years or period, it looks like a completely dusty, insect-infested and uncluttered office. The situation is the same for everyone. Since additional manpower is needed to improve, additional budget is needed. It is difficult to take responsibility to implement, which is a task that ordinary employees do.
Since the management of the docket after the business is required for 5 years after the payment or till the completion of the comprehensive audit, it is necessary to digitize the documents as the main goal is necessary. Although there is an initial cost, after some time of starting digitization, it becomes normal and like a regular work. So that if necessary and even in case of loss, a copy of the entire docket can be printed and retrieved. Apart from this, since the policy is also secured by digitization, it can be easily worked in difficult times over time, but only a certain employee should be authorized to control it. For this, additional software is available, so it can also be used. At present, some companies are trying to secure documents through scanning, but if we accept an average of 10 documents per policy number and per policy requirement, how long will it take to complete the work of millions of policies?
Simplification of claims is sure to increase the business. If the practice of making claims payment only in the presence of the authorized officer by submitting an application through its branch office can be made flexible and if a provision can be made to provide a claim payment of a certain amount from the branch, then it can be done through this technology to eliminate the compulsion to go to the center to collect claims from far away. However, for this, the control procedures should be formulated and implemented and the capacity of the employees working in the branch should be increased. Otherwise, the method of providing claims in the present situation cannot be of much benefit to the company. After payment, if the practice of digitizing and protecting the documents available to the claim bag can be done, then a big achievement can be made in the insurance sector.
The space occupied by the system of digitization can be used to fulfill another or other purpose. This will make docket management simpler.
Compared to the situation and efforts made by the banking sector to increase the security circle by stealing and looting the information of the banks, it should be considered that the insurance sector has so far been devoid of the possibility of information being hacked. Therefore, it seems that it is necessary to invest in firewalls and other secure technology to maintain this situation and prevent information theft. Is there a possibility of information theft or disturbance due to the hacking of insurance information? Who knows the future? More investment is needed not only to invest in security but also to enhance the capacity of the technicians to do the work.
The Insurance Authority has so far approved the insurance business to sell insurance only on the basis of physical documents and since this is the practice, it is necessary to make policy arrangements to move forward in terms of selling policies online by using new methods. Since there is a provision to sell this type of policy online in India and other countries, the future of insurance will be brighter if the necessary documents are understood and the policy can be sold after digitization.
(He is a former executive director of Nepal Management Association and a former insurer.) )
