Investing in Technical Underwriting Financial System Essay

Investing in Technical Underwriting Financial System Essay

Length: 1007 words (2.9 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

Introduction
TUFS:
The Technical underwriting financial system (TUFS) was the first largest Information Technology (IT) project ever implemented by Northern Insurance. Like any other IT project, TUFS also requires value assessment. This assessment helps the business people to identify the risks and benefits related to the project. TUFS was mainly designed to increase the efficiency of underwriting processes and to provide strategic e-business capabilities. But the e-business feature was not used by the company from the past two years (Smith & McKeen, 2005).
The anticipated benefits represent expectations, which in this case do not appear to have been clearly defined by IT or their business counterparts. At this point it may be of more interest to ask how the project fits into the company strategy. One important reason for this, is that benefits mentioned by the project will be tactical. In our case, improved efficiency and e-business may be good business tactics, but without clear strategy, it is difficult to predict how these features would give advantage to the company.
Risks at Northern Insurance
Martin Drysdale, CIO of National Insurance and his team completed the project in on time and on budget . At that time everyone thought TUFS would bring efficiency to underwriting process and new opportunities for top-line growth. But, from the time it was installed on to the systems, the maximum IT budget and resources were used to fix the underwriting errors that kept appearing. Almost $4 million was spent on TUFS after implementation. This is because some of the functionalities were altered due to the tight deadlines and lack of communication between the technicians and underwriters (Smith & McKeen, 2005).
While develop...


... middle of paper ...


...must be taken into consideration while designing it. If not the project may not give complete results as expected. In case of TUFS, some of these features were lagging. Those can be now modified by taking some measures as mentioned above, though it may not give complete results but it can now produce similar results as expected.





References
Colin Beveridge: Guidelines for IT management- Aligning IT with Business Strategy, Guideline number 273.
James D. McKeen and Heather Smith (2012): IT Strategy-Issues and Practices, second Edition.
Lionel Macedo (2009): The Role of Underwriters in Insurance, primer series on insurance, issue 8, September, 2009.
Mahdi Bahrami, Mazaher Ghorbani, S. Mohammad Arabzad (2012): Information Technology as an Improvement Tool for Customer Relationship Management, Procedia- Social and Behavioral Sciences 41(2012) 59-64.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Investing in Technical Underwriting Financial System Essay

- Introduction TUFS: The Technical underwriting financial system (TUFS) was the first largest Information Technology (IT) project ever implemented by Northern Insurance. Like any other IT project, TUFS also requires value assessment. This assessment helps the business people to identify the risks and benefits related to the project. TUFS was mainly designed to increase the efficiency of underwriting processes and to provide strategic e-business capabilities. But the e-business feature was not used by the company from the past two years (Smith & McKeen, 2005)....   [tags: organization, IT division, e-business]

Strong Essays
1007 words (2.9 pages)

myfloridacfo.com: An e-commerce support system Essay

- The website myfloridacfo.com is a portal for the Division of Insurance Agent and Agency Services in the State of Florida. In the websites portal is an information system that supports insurance professionals in applying, in maintaining and in updating their FL licenses. For instance, the portal will provide the requirements to obtain an insurance license for the state. Secondly, the state uses the system to store specific agent and agency service information that is important in the industry. In addition, the websites link to “MyProfile”, which enables all state licensed insurance professionals access to their detailed membership information....   [tags: insurance services]

Strong Essays
990 words (2.8 pages)

Russian Financial System Falling Behind Essay

- Introduction: A safe financial system is central to the development and successful market economy, and an essential condition for growth and stability of the economy as a whole. This system is the basis for mobilizing and distributing savings and facilitates its daily operations. Therefore, it is extremely important to create a sound financial system. After creation of a well established financial system, money and capital markets can develop especially primary and secondary markets of national government securities....   [tags: Russian Financial System]

Strong Essays
2871 words (8.2 pages)

Financial Regulation And The Financial System Essay

- Financial regulation is a form of regulation or supervision of the financial services industry, aiming to maintain the integrity of the financial system. Deregulation was experienced mainly in the worlds of banking and building societies, also affected the structure of banking sectors. To some degree, self-regulation caused a lot of adverse effects on consumers, it aroused a hot topic for people on consumer protection. Split capital investment trusts are investment trusts that companies raise funds to invest in other companies....   [tags: Bank, Financial services, Economics, Insurance]

Strong Essays
737 words (2.1 pages)

Analyzing The Two Organisations Financial Performance Essay

- 1. Introduction While insurance is considered a commoditised product, organisations are still faced with the challenge of delivering strategic initiatives achieving strong financial performance. Hence, Insurance Australia Group (IAG) and Suncorp Group Limited are recognised as the two major players in the general insurance industry in Australia. Holding market share of 20.9% and 19.9%, respectively according to Ibis World (2015). The objective of this paper is to analyse the two organisations financial performance....   [tags: Insurance, Underwriting, Investment]

Strong Essays
724 words (2.1 pages)

Thailand Financial Institutions Essays

- 1. Introduction Thailand is an emerging Southeast Asian financial market, comprising an increasingly perfecting network of markets and institutions, which provide a relatively wide range of financial products and services towards domestic and international investors. Thailand financial system, since established in 1940 [1], has experienced the cautious and pragmatic management period in 1960-1970s, the financial liberalization period in late 1980s and early 1990s [2] and the restructuring period after1997 Asia Financial Crisis [3]....   [tags: banking system, financial system]

Strong Essays
1407 words (4 pages)

Questions On Financial Information System Essay

- TASK 3 Question 3.1 (E2.1) Note how the essential financial systems and records to be established, and how they are to be maintained to ensure ongoing accessibility of financial information. Answer- A financial information system (FIS) accumulates and analyzes financial data used for optimal financial planning and forecasting decisions and outcomes. An FIS is used in conjunction with a decision support system, and it helps a firm attain its financial objectives because they use a minimal amount of resources relative to a predetermined margin of safety....   [tags: Balance sheet, Financial statements]

Strong Essays
746 words (2.1 pages)

Essay on The Malaysia Financial System

- INTRODUCTION The Malaysia financial system is structure into two major categories it is financial institution and financial market. But I will cover about financial institution only. The role of financial institutions is to resolve the problems caused by market imperfections. Without financial institutions the information and transaction costs of financial markets transactions would be excessive. Under financial institutions there are two type first banking system and non-bank financial intermediaries....   [tags: financial market, risks, institutions]

Strong Essays
2136 words (6.1 pages)

The Role of Shinsei Bank in Financial System Essay

- “Explain the role of Shinsei bank in the financial system. Access its exposures and performance during the financial crisis of 2007-2011. Did it do well or badly?” Bank description Shinsei bank has had a chequered history as its predecessor was called Long Term Credit Bank of Japan (LTCB), which declared bankruptcy during the financial crisis in Asia in 1998. Until 2000, New York-based Ripplewood’ Holdings made an acquisition, took over the bank and renamed it to ‘Shinsei’ which represented ‘renaissance’ ....   [tags: exposures, performance, financial, bank]

Strong Essays
954 words (2.7 pages)

Organizations As Systems Essay

- The focus of this case assignment is to determine the usefulness of identifying organizations as socio-technical systems. Organizations labeled as socio-technical systems establish the framework for evaluating the social and technical elements of an organization and determines their level of integration. As with any business organization, the social and technological elements must be balanced and tailored to work together to sustain effective operations. The AES Corporation serves as an excellent example of a socio-technical system that drifted out of balance....   [tags: Socio Technical System ]

Free Essays
1256 words (3.6 pages)