MANAGEMENT OF THE PROCESS OF SETTLEMENT OF LOSSES. MANAGING THE INSURER'S MARKETING ACTIVITIES. Iryna Nyenno, Doctor of Economics, Odessa I.I. Mechnikov. - презентация

1 MANAGEMENT OF THE PROCESS OF SETTLEMENT OF LOSSES. MANAGING THE INSURER'S MARKETING ACTIVITIES. Iryna Nyenno, Doctor of Economics, Odessa I.I. Mechnikov National University

2 Branch managers decide to pay or refuse to pay insurance compensation in the amount set by a separate order. Information about the event that caused the damage is received personally from the Insured, his representative or the assisting company by phone, fax or . The compliance officer fills in the form of the Notification of the occurrence of the insured event. After registering a message in the log of the incoming documentation, a loss management specialist sends a message to the Reinsurance Office to mark the loss of the reinsurers' equity and to provide information to the reinsurers on the occurrence of an event that may be recognized as an insurance. Managing the process of loss of proceedings

3 When issuing a written statement about the occurrence of an event that has signs of an insured event and payment of insurance indemnity, the responsible employee of the Insurer is obliged: to provide the Insured or the victim with an application form of the prescribed standard; verify the correctness and completeness of the information contained in the application; receive from the Insured documents of the competent authorities confirming the fact of the occurrence of the insured event. After obtaining the original documents, the loss management specialist sends inquiries to the competent authorities with information about the insured event. Managing the process of loss of proceedings

4 Depending on the nature of the event, the competent authorities may be: - in the case of road traffic accident (road traffic accident) - police bodies; - in the case of illegal actions of third parties - bodies of internal affairs, court, prosecutor's office; - in the case of a fire - fire protection authorities, state fire and technical expertise; - in the case of natural disasters - regional centers of hydropower and meteorology, Committees on Emergencies and Environmental Safety of the Population, etc. - in the case of damage to the life and health of third parties - a certificate from a medical institution on temporary disability, the conclusion of the medicines on the appointment of invalidity, in case of death - a certificate of death. Managing the process of loss of proceedings

5 After the application is registered, representatives of the Insurer carry out an inspection of the damaged object, departure to review the place of the event is carried out by a specialist on the settlement of losses. Specialist in the settlement of damages by types of insurance: - participates in carrying out an expert assessment of the insured and / or damaged vehicle, with the obligatory call of the Insured and responsible for the loss of the person (if the probable insured event occurred due to a known third person) or the representative of the insurance company, in which his liability is insured. An insurer may hire an independent property valuer. Payment for the services of this expert is regulated by the contract. Managing the process of loss of proceedings

6 After providing the Insurer with all the necessary documents and receiving the answers to inquiries within no more than 10 working days, the specialist forms an insurance certificate regarding payment or refusal of the insurance indemnity payment and makes calculations of the amount of insurance indemnity based on the accounts of the SRT (costing) or the report of the independent expert Does the letter prepare a letter of refusal to pay the insurance indemnity with the justification of the reasons for the refusal. After payment of the insurance indemnity, the specialist in the settlement of losses receives payment documents, confirming the fact of the insurance indemnity, duly executed, and attaches them to the materials of the insurance case. In the event of recourse to a physical or legal person who is guilty of harm, the injury specialist sends the request to the court. Employees of all divisions of the Insurer must take measures to minimize losses in the insurance business. Managing the process of loss of proceedings

7 - Reviewing the report on the assessment of the vehicle, if this leads to a minimization of the damage; - Reduction of insurance indemnity due to the purchase of parts for a damaged vehicle in stores at a price lower than that of a service station; - sending a damaged vehicle for repair on the service station, which provides discounts to customers sent by the Insurer; - detection of errors in the acts of automobile consumer research, invoices, provided by the SRT, the correction of which reduces the amount of insurance indemnity; - at the conclusion of the insurance contract, a mandatory inspection of the vehicle with full photographing of the car (side, front and rear), registration number, body number, etc.; The criteria for minimizing losses

8 - maintenance of the information base on insured vehicles under the contracts of CASCO and on compulsory insurance of civil liability of owners of land vehicles; - if necessary, when replacing the parts, parts and units of the vehicle, to demand from the Insured their provision, to make sure that this part has been replaced and indeed needs replacement; - carrying out, if necessary, re-examination of the vehicle after the repair is made upon the payment of the insurance indemnity; - Identify signs of insurance fraud and take measures to investigate them. If, after 15 days after the filing of the documents, no payment has been made, the Insurer must take into account that the Insured has the right to apply to the court or to the company for the protection of consumer rights, to the media, which may harm his reputation. The criteria for minimizing losses

9 Insurance marketing should be considered as a system, the most important elements of which are: 1) marketing researches of the insurance market (demand, supply, competition, state regulation), the formation of an insurance portfolio of the company (insurance products, their competitiveness, riskiness, innovation), potential consumers insurance services (geographical and socio-economic distribution, insurance needs, solvency, motivation, possibility of influence through advertising, cost of attraction, etc.); 2) studying and forecasting insurance interests (identifying existing and potential needs for insurance protection, which are currently not satisfied by the market or enterprise data, statistics of losses, factors that determine their size, etc.); The most important elements of insurance marketing system

10 3) development of a new or modernization of an existing insurance product (insurance objects, insurance risks (cases), insurance coverage, insurance conditions, additional services to the policyholder, quality and completeness of customer service at the stage of the insurance contract, etc.); 4) justification of the price of the insurance product (insurance tariff) and the price policy of the insurer (schedule of payment of insurance premium, discounts, etc.); The most important elements of insurance marketing system

11 5) development of the system of promotion (commercialization) of the insurance product (informing about the quality of the insurance product of potential insurers, image (insurer) and target (potential insurers) advertising support for the sale of the insurance product, means of stimulating sales, public relations (PR), etc.); 6) development of distribution system (sales channels of the insurance product, target market of sale, place and time of sale, etc.). The most important elements of insurance marketing system

12 The implementation of insurance products (underwriting) is a process of risk assessment of legal entities and individuals who contact an insurance company and are potential buyers of its insurance products (services) and making a decision on insurance (taking insurance risk). The most important components of the underwriting process are: 1) development of underwriting policy (determination of risk factors and categories of insured objects, maximum amount of insurance amount depending on the insurance sector and directions of activity, etc.); 2) acquisition of insurance services, that is, the attraction of new or prolonged insurance contracts, which expired (expires), the formation of a client base, the development of the insurer's insurance field; The most important components of the underwriting process

13 3) analysis and risk assessment of the potential insurer (separately or taking into account the riskiness of the insurance portfolio); 4) making a decision on insurance (to accept an object for insurance, based on the basic conditions of insurance, to accept with additional conditions and reservations, to refuse insurance); 5) Individualization of insurance conditions (clarification of insurance conditions taking into account the specifics of the individual insured - if necessary); 6) conclusion of the insurance contract; 7) classification of risks (division into underwriting groups) and formation of an insurance portfolio (a set of risks taken for insurance). Underwriting is the most responsible process of an insurance company's activity, since it is in the course of its carrying out the foundation of profitable (or loss-making) activities. The most important components of the underwriting process

14 The main tasks of marketing activity are the formation of marketing channels for insurance products: - preparation of agreements with insurance intermediaries; - development of regulatory documents for insurance intermediaries; - search and training of insurance intermediaries; - conclusion of agency agreements with insurance intermediaries; - development of an effective communication system between the insurer and the insurance intermediary; - development of criteria for assessing the work of insurance intermediaries and their system of material incentives; - training of insurance intermediaries and improving their qualifications; The formation of marketing channels for insurance products

15 - developing a sense of loyalty to the insurer from insurance intermediaries; - development of standard insurance products and / or sales instructions prepared for sale through insurance intermediaries; - maintenance of the "folder" of the insurance intermediary. To solve such problems, long-term agency agreements with insurance intermediaries are used that regulate their participation in solving individual issues of the creation and standardization of insurance products, fixing the level of authority transferred to insurance intermediaries, setting the percentage of remuneration for the sale of insurance products or other systems of stimulation of sales. The formation of marketing channels for insurance products

16 For a more flexible management of an agent network you need to create: - system of representations; - the relevant unit for managing, controlling and planning the activities of agents; - Permanent systems of counseling, training and qualification improvement of insurance intermediaries; - regular meetings of the senior management of the insurance company with representatives of insurance intermediaries (directors of representative offices, heads of partner companies, brokers); - the approved system of reporting on the work done; - development of criteria for the distribution of the activities of the insurer and the insurance intermediary. For a more flexible management of an agent network need to create

17 Such activity pursues the goal - to strengthen the position of the insurance company in the assortment of the insurance intermediary, increase the share of the intermediary in the amount of the insurance premium, increase the motivation of insurance intermediaries, eliminate errors in the sale and registration of insurance products sales, discipline enhancement, identify negative trends in the work of the intermediary, their prevention and removal, etc. In most insurance companies, the insurance sales system consists of three main types of sales channels: sales through insurance intermediaries; sales through broker; direct sales without the help of an intermediary. Specialized divisions of insurance intermediaries have been created: from the environment of employees of auto enterprises - directly at enterprises; at embassies (NA, UZK); foreign insurance companies (border insurance); DAI (CD, UZK). Management of the marketing activity of the insurer

18 With the adoption of Directive 2002/65 / EC, new rules were introduced on the distance marketing of financial services for individuals, including insurance [56]. Financial services by nature are intangible, so they are particularly suitable for remote marketing. Creating the legal framework for remote implementation of financial services should help to increase consumer confidence in new methods for the implementation of financial services, such as electronic commerce. The use of remote methods should not lead to unlawful restriction of the information provided to the client. To ensure transparency, the directive defines the requirements that must be met in order to ensure that the customer is guaranteed to receive the relevant information both before and after the conclusion of the contract. Management of the marketing activity of the insurer

19 Before entering into an agreement, the client must receive the preliminary information necessary for him to correctly assess the proposed financial service and have sufficient information to make a decision. The service provider must indicate during which period his offer will remain valid unchanged. The information in the directive covers general data applicable to all types of financial services. Other requirements for information that should be provided for specific financial services, such as coverage of an insurance policy, are defined not only in Directive 2002/65 / EC. Such information should be provided in accordance with the relevant Community law, if any, or in accordance with national law, subject to the provisions of Community law. Management of the marketing activity of the insurer

20 Moreover, in accordance with the provisions of Article 6 (right to refuse) of Directive 2002/65 / EC, the client has the right within 14 calendar days to cancel the contract without paying any fines and without mentioning any reasons. However, this period will be extended to C0 calendar days for life insurance contracts covered by Directive 90/619 / EC, which are concluded using distance- based methods, and personal pension operations. The period during which the client has the right to refuse is calculated starting from the later of two dates: - from the date of conclusion of the contract by means of distance learning, except for the above-mentioned life insurance contract; in this case, the countdown begins with the date when the client receives information that the distance contract has been concluded; - from the date when the customer receives the terms and conditions of the contract. Management of the marketing activity of the insurer

21 In order to ensure the optimum protection of consumer rights, it is important that the client is properly informed about the provisions of this directive and any codes of conduct existing in this field, and that he has the right to withdraw from the contract. In cases where the right to waive the contract is not valid due to the fact that the customer has expressly expressed wishes for the performance of the contract, the supplier must inform the client about it. The client must be protected from services that he has not requested. In such cases, the consumer should be exempted from any obligation, the absence of a response on his part cannot be considered an agreement. Management of the marketing activity of the insurer

22 1.Which documents should be provided for the settlement of loss procedure? 2.List the criteria for minimizing losses of the insurer. 3.Explain the most important element of the insurers marketing. 4.How are the marketing channels for insurance products formed? 5.What is underwriting process? Check questions to section