Information technology department operates very well at the Progressive Insurance Company. The information technology operations at Progressive Insurance Company include a set of services and processes that are provisioned to both the internal and external clients. The information technology department of any company supports all other operations especially in the digital age. Furthermore, most modern businesses operate over network infrastructure platforms. The information technology of Progressive Insurance has been lauded for improving the functioning of the company’s operations in both internal and external capacities.
At Progressive Insurance, information technology operations include routers, DNS servers, load balancing, firewalls, and hubs. The most notable manager at Progressive Insurance, Lewis took it over from the founder in the 1960’s grew and it from a small company to a national brand with the aid of technology. This essay is an analysis of the role of information technology (IT) in insurance companies, with focus on Progressive Insurance Company’s department as a case study.
The IT departments of insurance companies have enhanced internal and external communication between the employees and the customers all over the nation. However, IT has mostly had an impact on insurance companies’ clients. The technology has made it easy for clients since the web-based agency allows the clients to complete various application processes easily (Fitzsimmons 23). For Progressive Insurance, the IT department has grown, and it has awarded for its innovativeness since it was the first company to sell its Insurance online.
The company, with the help of the IT department enhanced telecommunications. Thereafter, the company managed and configured both its external and internal communications. The Company launched the 24 hours phone lines therefore enhancing its efficiency and accessibility. In addition, the company was also providing crossover services from competitors to its customers. Improvement of telecommunications made it easy for customers to obtain their policies much faster than in other services. The Progressive company agents could send information to the internal department and this was quick because wherever the client was he or she could get the insurance services easily (Pine 51).
Management of ports by closing and opening the firewall also enhanced communication with external servers. The company’s management is nationwide and so far, it has been marketed and spread to other nations in the word. Therefore, communication with the outside servers is important to the operations of the company. The IT department ensures that the security of the Progressive Insurance network is guaranteed across the borders. The safety of information is very crucial since the most company business is done online by authorized personnel.
This has led the IT department to enhance security in case of intrusion by external forces. Other concerns for the company’s IT department include ensuring that the phone system is managed to ensure that the network is healthy. There is a group of personnel that is tasked with alerting the management whenever any network resource is tampered with. These resources include storage servers, communication lines, and services such as file servers or emailing. In the course of the company’s recent history, Progressive Insurance Company has been highly efficient when it comes to network security (Luftman 50).
The Information Department at the Progressive enhances the management of the devices and the server. The personnel in the department facilitate the maintenance, setting up of configurations, upgrades, repair, and patching tasks. Peter Lewis, who has been the company’s manager since the 1960s set a precedent of hiring efficient IT department staff through young and bright people. In addition, he gave his staff the power and authority to make decisions about the management of devices, to question authority, and always be honest with their customers.
In the Insurance world, the following qualities presented a new but welcome approach to business (Progressive Insurance par. 1). The Manager of Progressive Insurance then encouraged and welcomed new ideas and this helped in the upgrading and the setting up of configurations for devices and servers. Due to the innovativeness of the IT personnel at Progressive insurance, the company enhanced the online Insurance platform. This breakthrough platform kept Progressive Insurance on the map as one of the best auto insurance companies in the country.
The department facilitates the management of individual and network storage. The staff ensures that all the applications can easily access the storage requirements that are essential for backup, memory, and archiving. The backup is meant to ensure that any information that is keyed in cannot be tampered with nor can it be lost. Loss of the insurance details can damage the company’s image leading to loss of business. The department also enhanced the computer thresholds that were used by the insurance company.
This management included fixing of broken equipment, installations of applications that were used in the running of the company, and upgrading of devices that include laptops, and desktops that the management has approved. They also ensure licensing and management of the desktops, mobile devices, and laptop software applications. The IT department staff members are high skilled and qualified when it comes software applications. Therefore, anything to do with the software application licensing and management is catered for through the IT department. The personnel in the department also teach or rather offer information on how to manage the devices and how to prevent outside sources from accessing information that is classified and strictly for the company’s use.
The most important function of the IT department is “the management of the file servers and the email functions” (Dakin 1249). Management of the file server and email enhances customer services since the file server is the key to the company’s operations. Customers/clients are given information via mail and this makes its configuration quite necessary. In response to competition, Progressive Insurance used the website as a channel that would be efficient for communication in the market. The progressive transition was very logical and quite easy. From level 1, the chain skipped up to Level 2 and if the case was tough enough, it moved to Level 3
The Information technology department in the Progressive Insurance Company facilitates computer operations at the helpdesk.They help in the management of the Data Center that promotes the physical locations of the equipment’s in the company. The space of the floor, cooling systems, electricity, and battery backup are inclusive of the IT department’s scope of reach (Luftman 49).
In the case of too much heat in the company, the department facilitates the efficiency of the cooling system, which provides a favorable environment for both the clients and the staff at large. They also manage the floor space to provide sufficient space for the clients and to prevent overcrowding and congestion in the organization. Battery backups are also facilitated by the team therefore in the case of any blackout in the organization, customer service continues. Back up is a plus for the company generally since the customers will be impressed because of the efficiency.
The IT department ensures backup of data since the Insurance operations run daily, weekly, monthly, and yearly. Therefore, there should be the possibility of recovering data if needed (Melville, Kraemer, and Gurbaxani 289). Errors or accidents occur in any organization and past information should be easily accessed to clarify any loopholes that may have occurred. Therefore, thanks to the IT department, data can easily be retrieved in case of any disaster. The department also ensures that in the event of any disaster, application servers and networks should have the capability of performing regularly. The department facilitates the creation of user profiles and authorization of all systems in Progressive Insurance.
The department also engages in the procedure of deleting the profiles of the old users. Clearance prevents unauthorized persons from accessing the firm’s details and using it for their gain. Authorization also prevents competitors from tampering with the particulars of the company. The Information technology department designed software that would handle reinsurance and claims. Separators are produced in the reinsurance module while the system in the front office record, monitor and progress the applications that the customers forward. The Claims System facilitates payments recovery, statistics, accounting, and reserves (Pine 51)
The growth of the Progressive Insurance has been greatly influenced by the Information technology department. Progressive Insurance has pioneering efforts in the use of Information technology in the auto insurance industry. The company has been number one in the use of internet to improve communication with independent agents, prospects, and customers in general. Due to the work of the IT department in 1990, Progressive was the first insurance provider to provide twenty-four hours claim services. In 1994, the company launched Immediate Response Vehicles (IRVs), which allowed many agents to settle claims at the site of the accident. Eventually, Progressive has grown significantly due to its internet options.
Works Cited
Dakin, Gary. “Shaping the Future: Business Design through Information Technology.” Journal of the Operational Research Society 44.12 (2013): 1249-1250 .Print.
Fitzsimmons, James. Service Management: Operations, Strategy, and Information Technology, New York: McGraw-Hill, 2006. Print.
Luftman, Jerry. “Measure your Business-IT Alignment.” Business Execution for CIOs 4.2 (2003): 49-50. Print.
Melville, Nigel, Kenneth Kraemer, and Vijay Gurbaxani. “Review: Information Technology and Organizational Performance: An Integrative Model of IT Business Value.” MIS Quarterly 28.2 (2004): 283-322. Print.
Pine, Joseph. “Mass Customizing Products and Services.” Planning Review 21.4 (2003): 6-55. Print.
Progressive Insurance. 2016. Web.