Ankuk Fire & Marine Insurance's Use of Electronic Data Interchange on Cargo Insurance Processing

안국화재해상보험의 적하보험 EDI 활용

The insurance industry is highly competitive since it is difficult to differentiate one company's service from another. This paper examines how Ankuk Fire & Marine Insurance has differentiated its service and improved its competitive edge against others by using electronic data interchange (EDI). In order to improve its service level, Ankuk Fire Insurance has significantly reduced paper work by transmitting information electronically to its customers. This was possible with standardized product codes and databases which were installed both on the Ankuk and customer premises. Ankuk Fire Insurance transmits its customer's insurance information to the customer's database instead of hand-carrying or mailing it. The main benefits of this has been: (1) fewer errors as data does not need to be re-entered, (2) faster customer service with electronic data delivery, and (3) better quality customer service due to highly structured relationships with customers. EDI will soon be available to all insurance companies due to the goverment's aggressive promotion of a KTNet plan. Ankuk Insurance, therefore, needs to adopt the standardized protocol recommended by KTNet and develop new products which will give them a competitive edge and minimize the possibilities of losing their clients to other insurance firms.