Advances in communications technology have allowed traditionally distinct financial businesses to keep instantaneous track of developments in other businesses and compete for some of the same customers. Some insurance companies now offer deposit accounts and mortgages. In the United States, life insurance companies now sell more pension plans and other asset management services than they do conventional life insurance. Developments in computer technology that have given insurance providers the ability to quickly access and process information have allowed them to custom-design policies to fit the needs of individual customers. Though the Internet offers tremendous access to information about prices, it has done little to simplify the process of comparing the offerings of different insurance policies and services. Therefore, consumers have increasingly come to view insurance as a commodity, differing only in price from provider to provider. This attitude may lead people to buy insurance that does not give them the kind of coverage they need. Other types of technology and scientific developments may also have great effect on insurance. By providing a broad scope of new information about people’s medical predispositions, genetic testing has the potential to redefine how providers of life and health insurance determine risk. In addition, improvements in geological and meteorological technology have the potential to change the way property insurers calculate risks of damage. For example, as scientists improve their abilities to predict severe weather patterns, such as hurricanes, and geological disturbances, such as earthquakes, insurers may change how they provide protection against losses from such events. In order to describe how IT application will affect insurance companies, this thesis includes a description of IT application and its affect in increasing customer satisfaction and decrease costs in Asia Insurance Company in Iran. The analysis shows that the IT application has a positive effect on insurance customer satisfaction and they are highly satisfied with automated system. On the other hand IT application bears some expenses which will lead to increase in costs in the company.