Information Technology
(IT) is changing the paradigm of the
insurance industry. The on-line direct
sales utilizing IT management solution
and term application system including
DBMS, Call Center, Network, and Security
is replacing off-line insurance consultants
and the shops rapidly. In particular,
the on-line insurance products utilizing
IT, aided by the deduction of the management
costs forming a 15-20% lower price range,
are obtaining customers with increasing
speed.
The IT Return on Investment (ROI) of
the companies selling on-line products
for car insurance, such as the First
Fire & Marine Insurance, Kyobo Life
Insurance, Educar Insurance, and Daeum
Direct has proven its capacity affecting
the industry at large, including Samsung
Life Insurance, and Hyundai Insurance.
The First Fire & Marine Insurance
has its sales records of 8 billion won
per month through ‘i-First’ direct sales
on-line. This is an achievement of IT
system investment of two billion won
and 100 consultants at the call center.
In comparison to 22 billion won per
month sales records by 10,000 of insurance
planners from the off-line operation
of the First Fire & Marine Insurance,
the effectiveness on the costs of operation
exceeds 10 times. Therefore, the First
Fire & Marine Insurance is planning
to expand on-line direct sales in the
future. Kyobo Life has also attracted
attention from the insurance industries
with the sales records of 184.6 billion
won only by on-line auto insurance.
The company has enticed the new customers
by ‘auto insurance marketing cheaper
by 15% and more.’ Along with Deahan
Insurance, Educar, and Daeum Direct,
auto insurance industry has jumped into
on-line direct sales, exceeding 250
billion won of market scale. Daeum Direct,
collaboration of LG Insurance with Daeum
Communication, has embarked last month,
outsourcing the entire section to the
external experts. Daeum Direct has expected
to concentrate on expansion of customers
through IT Total Outsourcing Service
to INSWAVE Systems Inc., an expert enterprise
of the on-line insurance package. The
expansion of the on-line insurance industry
offers new opportunity to the existing
IT Solution industries. The domestic
solutions, which reflect the economic,
cultural, and social environment of
Korea and the regulations and customs
related to insurance industry, are becoming
popular. The existing firms of on-line
insurance package solution are showing
its capacity through vast experience
in the wired/wireless annexed service
and in the operation of Customer Relationship
Management (CRM) system. The existing
on-line insurance package solution including
INSWAVE Systems Inc., offers full set
systems, needed for insurance enterprise
in Korea, including contract, undertake
consultation, endorsement, maintenance,
assessment of damage, insurance payment,
depositing and drawing. Also, the insurance
systems, systematically including the
operation process, data management,
contact call center, and web marketing,
preoccupies the IT demands of five on-line
insurance direct sales enterprises.
These phenomena are proved to be the
most effective success stories of the
native on-line insurance package solution
equipped with vast experience in wired/wireless
telecommunication annexed service and
ability in operating CRM system.
Mr. Se-yong Eo, the executive officer
of INSWAVE Systems Inc. (the on-line
insurance package enterprise) analyzed
that “the on-line direct sales insurance
has settled as the general trend, …
the damage insurance consultants in
particular recognize the on-line direct
sales as the solution for an active
defense against the Bancassurance market
of the banks, expanding the demands
for the IT solutions such as CRM, Business
Intelligence (BI) Solution, call center,
system management solution, network
management solution, and security software.
