Transcript Document

Motor insurance and claim
handling
Technology and intelligence for
claims cost optimization
AIIF - 2014 Azerbaijan International Insurance Forum
GENERAL INFORMATION
Compulsory Insurance Bureau (CIB) deals with the protection of interests of
suffering insured persons and third parties, provision of stability and
development of compulsory insurance system with regard to the following
types of compulsory insurance.
•
Compulsory real property insurance
•
Compulsory third party liability insurance of motor vehicles (CMTPL)
•
Compulsory third party liability insurance associated with the use of the real
property
•
Compulsory personal accident insurance of passengers.
•
Compulsory insurance against loss of professional work capacity as a result of
labor accidents and occupational diseases
Currently, CIB has 15 member insurers and 11 of them are eligible to run CMTPL.
CIB’s role with respect to CMTPL
According to the applicable legislation of Azerbaijan, with respect to CMTPL,
CIB is a:
• MOTOR BUREAU
• COMPENSATION BODY
• GUARANTEE FUND
• PROVIDER OF EXISTENCE OF ELECTRONIC INFORMATION SYSTEM
STATISTICS
YEAR
NUMBER OF CMTPL INSURANCE
CONTRACTS
AMOUNT OF CMTPL INSURANCE
CONTRACTS
2013
911,909
69,367,582 AZN
2012
916,744
72,024,711
NUMBER OF CMTPL INSURANCE CONTRACTS:
2013
0,53%
2012
AMOUNT OF CMTPL INSURANCE CONTRACTS:
2013
3,69%
2012
In total in January- May of 2014 more than 347 thousand insurance policies under CMTPL were concluded
and total of 25,3 million manats premiums were collected.
If we compare first 5 month of 2013 and 2014 we can see 6,33 % decrease in CMTPL policies and 7,4%
decrease in collected premiums.
STATISTICS
2013- COMPENSATION PAYMENTS PAID BY CIB
Damage to health
Death of the
person
TOTAL
Count
17
7
24
Amount
20,191.5 AZN
34,200 AZN
54,391.5 AZN
In 2012- compensation payments in the amount of 5,000 manats were made by CIB
During January-May 2014 total of 49,510 manats were paid as compensation by CIB.
As you can see the years pass the amount of compensation payments are increasing.
STATISTICS
Damage to
vehicles
2013
Year
2012
Year
Damage to
property
Number
Amount (AZN)
17,363
23,403,167
553
4064
6, 489,472.47
92
Damage to
health
Death of the
person
TOTAL
Number
Amount
(AZN)
Number
Amount
(AZN)
Number
Amount (AZN)
822,079
398
443,934
133
661,000
18,447
25,330,180
175,158.14
24
120,000
47
39,000
4227
6, 823, 630.61
Number Amount (AZN)
During first 5 month total 11 million manats were paid for CMTPL.
In comparison with 5 month of 2013 and 2014 it was observed increase of 20% in the amount of payments
Damage caused to
vehicle
Damage caused to
property
Number
Amount
(AZN)
Damage caused
to the health
Number
Amount
(AZN)
Death
Total
Year
Number
Amount
(AZN)
Number
Amount
(AZN)
Number
Amount (AZN)
2013
6,244
8,565,033
188
339,301
108
98,350
36
180,000
6,576
9,182,684
2014
7,845
9,676,053
273
357,304
297
369,500
135
641,288
8,550
11,044,145
Percent
25.64
12.97
45.21
5.31
2.75
3.75
3.75
3.56
30.02
20.27
Lossratio
One of the most complicated tasks of insurance business is claim handling. The main
objective of an insurance company is to monitor and control every stage of claim handling
since this will also help to reduce the cost. During 2013 CIB participant insurance
companies in total have spent 37% of the collected premium was used to pay for claims.
However during the first 5 month of 2014 total paid claim amount is 44% of collected
premiums. If we consider the fact that 30% of collected premium goes towards the
operation costs then we can see that during 2013 the loss ratio was around 67%, and
during 5 moth of 2014 this number is 74%. The decrease in collected premiums have its
effect on lowering the average paid claims.
25,330,180 AZN
CLAIM HANDLING SOFTWARE
Advantages of new system
•
The automation of the whole process starting with the oral insurance claims till the insurance payment,
also including the fulfillment of the process of subrogation
•
Informative interface for users
•
The possibility of editing of the inserted information, up to the moment of payment
•
During the certain stages of insurance settlement informing the relevant persons by means of SMS, email or official letters
•
The automatic determination of the missing documents with regard to the insurance claim and electronic
informing of the applicant.
•
Direct converting of reports of insurance payments in Excel, PDF formats and automatic sending of
monthly, quarterly and yearly reports to the officials
•
25,330,180 AZN
The possibility of getting of comprehensive information about insurance accidents (the division of
accidents according to the regions, age of the drivers of vehicle that caused the damage, sex, etc).
•
Online Application submission
TRANSIT POLICIES
Number of vehicles registered abroad entering the Azerbaijan Republic during 2013 for the purpose of
transit – 245,898
74% of these vehicles are registered in Green Card system member countries.
Number of vehicles registered abroad entering the Azerbaijan Republic during 2014 January – May for
the purpose of transit – 87,696
76% of these vehicles are registered in Green Card system member countries.
In 2013 224 insurance accidents took place with participation of cars that are registered abroad and
entered the territory of Azerbaijan with the aim of transit. Total compensation payment in the amount of
300, 215 manats were made with regard to insurance accidents with participation of vehicles that are
registered abroad and entered the territory of Azerbaijan for transit purposes.
25,330,180 AZN
During 5 month of 2014, 61 insurance accidents took place with participation of vehicles that are registered
abroad and entered the territory of Azerbaijan with the aim of transit. Total compensation payment in the
amount of 85,083 manats were made with regard to insurance accidents with participation of vehicles that
are registered abroad and entered the territory of Azerbaijan with the aim of transit.
MEMBERSHIP WITH THE GREEN CARD SYSTEM: CURRENT STATUS
Number of vehicles registered abroad entering the Azerbaijan Republic during 2013 for the purpose of
transit – 245,898
74% of these vehicles are registered in Green Card system member countries.
Number of vehicles registered abroad entering the Azerbaijan Republic during 2014 January – May for
the purpose of transit – 87,696
76% of these vehicles are registered in Green Card system member countries.
In 2013 224 insurance accidents took place with participation of cars that are registered abroad and
entered the territory of Azerbaijan with the aim of transit. Total compensation payment in the amount of
300, 215 manats were made with regard to insurance accidents with participation of vehicles that are
registered abroad and entered the territory of Azerbaijan for transit purposes.
25,330,180 AZN
During 5 month of 2014, 61 insurance accidents took place with participation of vehicles that are registered
abroad and entered the territory of Azerbaijan with the aim of transit. Total compensation payment in the
amount of 85,083 manats were made with regard to insurance accidents with participation of vehicles that
are registered abroad and entered the territory of Azerbaijan with the aim of transit.
Thank You