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The Computer and Home Office Management Development in Life Insurance

Robert V. Nally
The Journal of Risk and Insurance
Vol. 36, No. 4 (Sep., 1969), pp. 393-400
DOI: 10.2307/251297
Stable URL: http://www.jstor.org/stable/251297
Page Count: 8
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The Computer and Home Office Management Development in Life Insurance
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Abstract

The use of computers by business firms covers three broad areas. These include data processing, the application of management science techniques, and, as an integral part of management, information systems. Most life insurance companies use computers extensively for data processing, and make rather limited use of them in conjunction with the application of management science techniques and management information systems. However, the potential for use in these latter two areas is considered to be very substantial, and it is expected that life insurance companies will inevitably move in this direction. The data processing applications have already caused structural and environmental changes within home offices, as well as changes in administrative practices. An inquiry into the effects of the computer on the technical, human, and conceptual skill requirements of supervisors, middle managers, and top management reflects that all three of these groups have experienced some necessity for adjustment. The anticipated expanded utilization will have an even further impact on home office management. Thus management development programs will have to be adapted accordingly.

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