DISTANCE EDUCATION

Distance Education Application in Insurance Industry

Distance Education Application in Insurance Industry

Introduction

E-commerce is used as one of the most important aspects of innovation in business processes which performed by organizations and many companies in the world. Insurance industry as one of the major economic function plays a vital role in improving and promoting economic indicators. Therefore by adopting methods and factors and ranking them, an important role will be created in the development of insurance industry

Application of technology innovations in the field of business has had tremendous impact. Using innovative technology is a kind of change on business processes and system components which have positive effects. One of the mentioned innovative is the application of electronic devices especially the internet trading in business system. These innovations and modifications which are called the electronic commerce consist of several advantages for organizations and industries.

Hence, many companies are interested to use of it. On the other hand, application of electronic commerce is not now an optional form and companies forced to apply it in their business. Application of electronic commerce is affected by factors which includes some positive and negative impact. Organizations and industries are vulnerable if they do not use these new tools of strategy. Insurance industry is one type of industries. It is one convinced way of amend financing losses resulting from accidents. Application of e-commerce in insurance industry, following preparation of the necessary structures and require software and hardware changes. For example, software changes include manager and staff to change attitudes toward technology and electronic commerce, managerial and operational skills and entrepreneurial, risk appetite, changes in business processes, changes in organizational structure etc. Hardware changes include buying computers, networking, financing etc.

Discussion

Insurance

Insurance is an agreement where, for a stipulated payment called the premium, one party (the insurer) agrees to pay to the other (the policyholder or his designated beneficiary) a defined amount (the claim payment or benefit) upon the occurrence of a specific loss. This defined claim payment amount can be a fixed amount or can reimburse all or a part of the loss that occurred. The insurer considers the losses expected for the insurance pool and the potential for variation in order to charge premiums that, in total, will be sufficient to cover all of the projected claim payments for the insurance pool. The premium charged to each of the pool participants is that participant's share of the total premium for the pool. Each premium may be adjusted to reflect special characteristics of the particular policy. Normally, only a small percentage of policyholders suffer losses. Their losses are paid out of the premiums collected from the pool of policyholders. Thus, the entire pool compensates the unfortunate few. Each policyholder exchanges an unknown loss for the payment of a known premium.

Under the academic arrangement, the affair accordant to accomplish the affirmation payments is the allowance aggregation or the insurer. The basin actor is the policyholder. The payments that the policyholder makes to the insurer are ...