association of serbian insurers - The International Insurance

Report
ISTANBUL
MARCH 2013
CONTENT
I. ASSOCIATION OF SERBIAN INSURERS..................................................................................................................................3
A. About us............................................................................................................................................................................4-5
B. Members..............................................................................................................................................................................6
II. SERBIAN INSURANCE MARKET............................................................................................................................................7
A. Number of insurance companies in the Serbian insurance market....................................................................................8
B. Gross insurance premium....................................................................................................................................................9
C. Insurance premiums of the most frequent types of insurance.........................................................................................10
D. Share in total insurance premium of the most frequent types of insurance....................................................................11
E. Concentration of insurance premiums in the market........................................................................................................12
F. Insurance premiums by types of insurance in 2011...........................................................................................................13
G. Premium share of the top five insurance companies........................................................................................................14
III. MOTOR THIRD PARTY LIABILITY.......................................................................................................................................15
A. Number of MTPL policies and total premium by companies in 2012...............................................................................16
B. Share of MTPL premium by companies in 2012................................................................................................................17
IV. INSURANCE FRAUDS – MAJOR INSURANCE PROBLEM...................................................................................................18
A. Overall................................................................................................................................................................................19
B. Serbian market...................................................................................................................................................................20
C. Where is the „arable land“ for frauds in Serbia.................................................................................................................21
D. Some typical problems.......................................................................................................................................................22
E. Combating frauds...............................................................................................................................................................23
V. INFORMATION CENTRE OF THE ASSOCIATION OF SERBIAN INSURERS............................................................................24
A. General facts......................................................................................................................................................................25
B. Protocol with Ministry of the Interior................................................................................................................................26
C. Information centre and anti-fraud system.........................................................................................................................27
D. Key word – Cooperation.....................................................................................................................................................28
VI. BODILY INJURIES...............................................................................................................................................................29
A. Key aspects/problems in the Serbian market....................................................................................................................30
I.
ASSOCIATION OF SERBIAN
INSURERS (ASI)
A. ABOUT US
 The Association of Serbian Insurers is the legal successor of
the Association of Insurance Companies of Yugoslavia,
founded in 1968.
 The Association of Serbian Insurers is a non-profit
organization which performs duties of common interest of
the members of the Association, public functions granted by
law, work for the improvement and development of
insurance, activities in the field of professional training of
personnel, initiates passing and amending laws and other
regulations in the field of insurance and discusses and
resolves other issues of common interest, which are entrusted
to the Association by its founders and members.
4
MEMBERS (24) - 21 INSURERS (6 COMPOSITE + 9 NON-LIFE + 6 LIFE)
+ 3 REINSURERS
ASSOCIATION OF SERBIAN INSURERS
EXPERT
COMMISSIONS
(13):
Motor vehicles,
PUBLIC FUNCTIONS GRANTED BY LAW
DUTIES OF
COMMON
INTEREST
Property
insurance,
Green Card,
Information
center,
Legal affairs,
Financial issues,
Actuaries,
Health insurance,
GREEN
CARD
BUREAU
GUARA
NTEE
FUND
INFORM
ATION
CENTER
CODE OF
CONDUCT
Representing
insurance
companies
(country and
abroad)
EDUCATION
– TRAINING
OF
PERSONNEL
REGULATORY
WORK –
INITATE
PASSING AND
AMMENDING
LAWS
Life insurance,
MTPL insurance
claims,
Prevention of
frauds,
Development of
HR,
Bonus/malus.
5
B. MEMBERS
* On December 31, 2012 there were total of 28 insurance and
reinsurance companies operating in Serbia, 24 of them are
members of the Association of Serbian Insurers.
6
II. SERBIAN
INSURANCE MARKET
Number of insurance companies in the Serbian insurance market
Year
Composite
Non-life
Life
Total
2005
8
8
1
17
2006
7
6
1
14
2007
6
8
4
18
2008
6
9
6
21
2009
6
9
7
22
2010
6
9
7
22
2011
6
10
7
23
2012
6
11
7
24
* Apart from insurance companies, on December 31, 2012
there were also 4 companies in Serbia engaged in reinsurance
8
business.
Gross insurance premium (in 000 €)
700,000
( u 000 € )
600,000
500,000
400,000
300,000
200,000
100,000
0
2005
2006
2007
Total
2008
Non-life
2009
2010
2011
Life
9
Insurance premiums of the most frequent types of
insurance (in 000 € )
250,000
MTPL
200,000
Other property insurance
150,000
Motor casco vehicle
insurance
100,000
Property insurance against
fire&other perils
50,000
Accident insurance
0
2005 2006 2007 2008 2009 2010 2011
Year
10
Share in total insurance premium of the most frequent
insurance types
11
Concentration of insurance premiums in the market
12
Insurance premiums by types of insurance in 2011
Code
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Type of insurance
Total premium
(000 €)
Share in total premium
Accident insurance
Voluntary health insurance
Motor insurance
Rail vehicle insurance
Aircraft insurance
Ship (vessel) insurance
Goods in transit insurance
Property insurance against fire and other perils
Other property insurance
MTPL
Aircraft Liability Insurance
Vessels Liability Insurance
General liability insurance
Credit insurance
Warranty insurance
Financial loss insurance
Legal expenses insurance
Travel assistance insurance
Other non-life insurance
Life insurance
Annuity insurance
Supplementary insurance along with life insurance
Voluntary pension insurance
Other types of life insurance
37.024
9.287
68.590
1.565
1.186
981
7.477
42.084
78.660
178.802
2.477
128
10.066
931
738
1.363
89
10.763
15
83.105
4.739
7.286
0
364
6,76%
1,70%
12,52%
0,29%
0,22%
0,18%
1,37%
7,68%
14,36%
32,64%
0,45%
0,02%
1,84%
0,17%
0,13%
0,25%
0,02%
1,97%
0,00%
15,17%
0,87%
1,33%
0,00%
0,07%
Total non-life insurance (from 1 to 19 )
452.226
82.56%
Total life insurance ( 20 to24 )
TOTAL
95.495
547.721
17.44%
13
Premium share of the top five insurance companies
TOTAL
NON-LIFE
2011
2010
LIFE
2011
2010
2011
2010
1.
DUNAV
28,24
25,93
1.
DUNAV
32,00
29,59
1.
DELTA GEN.
25,55
25,24
2.
DELTA GEN.
18,73
18,51
2.
DDOR NS
20,15
21,08
2.
WIENER ST.
24,20
25,20
3.
DDOR NS
17,88
18,50
3.
DELTA GEN.
17,45
17,18
3.
GRAWE
19,34
21,28
4.
WIENER ST.
8,30
8,67
4. UNIQA non-life
6,19
5,87
4.
DUNAV
8,20
7,47
5,21
4,90
5.
5,31
5,39
5.
UNIQA life
7,64
7,50
78,36
76,51
81,11
79,11
84,92
86,69
5. UNIQA non-life
WIENER ST.
14
III. MOTOR THIRD PARTY LIABILITY
Number of MTPL policies and total premium
by companies in 2012
No.
Company
1
AMS
2
Number of MTPL
policies
Total
premium
(000 €)
141.581
10.140
AS
10.814
907
3
Basler
12.504
990
4
DDOR Novi Sad
173.314
13.680
5
Delta Generali
470.678
36.630
6
Dunav
637.470
51.020
7
Milenijum
124.354
10.075
8
Sava
95.215
7.561
9
Takovo
224.085
17.223
10
Triglav
114.008
8.998
11
Uniqa non-life
104.903
8.010
12
Wiener Städtische
32.261
2.836
2.141.187
168.071
TOTAL
16
Share of MTPL premium by companies in 2012
Takovo
10%
Triglav
5%
Uniqa
5%
Wiener AMS AS
2% 6% 1%
Sava
4%
Milenijum
6%
Basler
1% DDOR NS
8%
Delta Generali
22%
Dunav
30%
17
IV. INSURANCE FRAUDS MAJOR INSURANCE PROBLEM
A. OVERALL
 Frauds dating back since the first insurance company was
established (Friendly Society, South Caroline, USA, 1732).
 The more insurance develops anti-frauds mechanisms, the
more frauds get sophisticated – everlasting game.
 Serious impacts/losses (annually):
 Great Britain estimated to cca. 2 billion £
 Germany estimated to 4 billion €
 USA > $ 30 billion
 Insurance Europe estimates total loss 2% of premium, insurers
say even more.
INSURANCE FRAUDS ARE NOT ONLY THE INSURERS’
PROBLEM, BUT THE EVER INCREASING CRIMINAL AT THE
EXPENSE OF ENTIRE SOCIETY!
HONEST CONSUMERS ARE PAYING THE PRICE THROUGH
19
HIGHER TARIFFS
B. SERBIAN MARKET
 Frauds taking place predominantly with:
 Casco insurance (hull insurance, motor vehicle insurance)
 MTPL compulsory insurance
 Property insurance
 Frauds appearing both as:
 Domestic
 Cross-border
(Usually organized groups: 8 suspects currently under proceedings before the
Court in Subotica, Serbia, estimated more than €250 thousand worth of
claims against eight Serbian insurers arising from the fraudulent accidents on
the territory of Hungary where said Serbian citizens appear as offenders –
party causing damage)
Estimated loss of 2-4 milion € annually,
quite significant for market that size!
20
C. WHERE IS THE “ARABLE LAND” FOR FRAUDS IN
SERBIA?
 When issuing an insurance policy
Granting bonus whereas it should not be, double/false policies and different
tariffs, backdating/forging of validity, etc. - involving employees and/or agents.
 False or fraudulent accidents
Non-existing or deliberately caused accidents, inflated material damage, false
bodily injuries, posting claims for non-existing vehicles, reporting false thefts.
Mostly on the ground of European Accident Report (Constat Amiable),
occasionally involving police, insurer’s employees and various experts, lawyers.
 Claim settlement
Involving insurer’s employees, often in collaboration with repair services,
relating mostly to material damage.
By claimants by way of: enlarging of invoices, spare parts frauds, submitting
expert’s estimation on vehicle much higher than the market one, double
indemnification, non-existing or falsely enlarged
bodily injuries, etc. - involving various experts
and surveyors, lawyers, medical staff, etc.
21
D. SOME TYPICAL PROBLEMS
 Frauds are often very difficult to prove
 Involvement of experts and even civil servants
 Judicial practice approach – „off the peg“ and uniform
 Lack of adequate or updated regulatory framework
 Absence of cooperation with state institutions, poor
coordination (insurers – police – courts).
 Insufficient cooperation (exchange of info) between the very
insures
 Data protection restrictions
 Lack or adequate tools (softwares), etc.
22
E. COMBATING FRAUDS
 On the individual level, most of the Serbian insurers have
developed anti-fraud departments.
 Commission for prevention of frauds in insurance has been
established within the Association of Serbian Insurers, which
deals with this matter on a high expertise level, consisting of
top insurance experts in anti-fraud field, also exchanging and
analysing data on particular cases.
 Both the Association and the insurers are cooperating closely
with Ministry of the Interior and Courts, providing data and
expertise, initiating investigations.
23
V. INFORMATION CENTRE
OF THE ASSOCIATION OF
SERBIAN INSURERS
(IC ASI)
KEY TO ESTABLISHING OF ANTI-FRAUD MECHANISM
A. GENERAL FACTS
Information centre of the Association of Serbian Insurers (IC ASI) is established in
conformity with the Law on Compulsory Traffic Insurance, with following key features:
 Unification of all MTPL insurance data, for all licensed vehicles in Serbia;
 It is a unique data base containing full set of information on issued insurance
policies and registered claims with full control of the issued insurance policies;
 Car accidents data base;
 Facilitation of implementation of Bonus/Malus system;
 Web portal – customer service with an objective to offer prompter insight into the
accident’s details for easier settling of the claim, as it offers information about
vehicles registered in Serbia which were involved in car accidents on the territory
of RS, as well as information relating to claimant and guilty party;
 It is planned to carry on with constant development of the IC ASI e.g. developing of
the module for fraud revealing in MTPL insurance and to integrate it into the
similar EU systems.
25
B. PROTOCOL WITH MINISTRY OF THE INTERIOR
 In accordance with the Law provisions, Ministry of the Interior of Republic of
Serbia (MUP RS), keeps track in its electronic database of all registered vehicles in
the Republic of Serbia and the data from the Police records from the scenes of
accidents.
 In order to improve the service functions of IC ASI, the Project of integration with
Information system of the Republic of Serbia, Ministry of the Interior, has been
launched, starting with signing of a Protocol on data exchange.
 As part of the exchange, Republic of Serbia, Ministry of the Interior, granted access
to IC ASI to data from (national) vehicle register (e.g. registration and chassis
numbers, categories and types of vehicles, engine number, paint, etc.), allowing at
the same time also the download of data from Police records from car accidents.
 These data will be used for statistical purposes and in order to develop a System
(software) against fraud.
26
C. INFORMATION CENTRE AND ANTI-FRAUD SYSTEM
 The system is to analyze pre-defined key fraud indicators, such as: accidents that involve
people that are already recorded in some previous accident in the roles of „offender“,
„victim“, „witness“ etc., cases of drastic difference in value of the vehicles involved, frequent
appearance of one and same scene of accident, one and same police officers, and many
more.
 It shall be set as to conduct web research of the social networks and to analize data collected
so to recover information on the connection between persons involved in traffic accidents,
hence provide insight to possible fraudulent activities of the organized groups.
Additional benefits:
 The development of this project with Republic of Serbia, Ministry of the Interior, also
provides technical conditions to start with the sale of the car insurance policies via Internet,
which will allow customers to choose their own insurance company from which they want to
buy insurance policies. That will result in restrictions on the PMVI commission, which is one
of the burning issues in the Serbian MTPL market.
 Reduce the impact of PMVI, since for the vehicles up to 3 years of age it would be possible to
complete the process of renewal of insurance and registration within the insurance
companies.
27
D. KEY WORD - COOPERATION
 Between insurers at the level of local markets
 Between insurers and state institutions at local markets
 Between insurers at the international level, both individually or through
pre-established communication chanels/formal arrangements
 Between insurers or groups of insurers with international institutions and
organizations (Interpol, national police of various states, Insurance Europe,
CoB etc.)
PROTOCOL ON COOPERATION TO COMBAT INSURANCE FRAUD
April 2011
Slovenia, Croatia, Bosnia and Hercegovina (Federation and Republic of
Srpska), Montengro, Serbia and Hungary
Possible model of regional data exchange network/data base, „embryo“ of
future regional anti-fraud software
28
VI. BODILY INJURIES
A. KEY ASPECTS/PROBLEMS
IN THE SERBIAN MARKET
 Rather uneven judicial practice (differing to up to 300% depending on
region)
 The „Act on compensation of damage to persons“ of the Government of
Serbia has been proclaimed void by the Constitutional Court, leaving some
sort of „legal vacuum“
 Attempts of the insurance companies to reach some consensus failed due
to the significant difference in living standards and earnings in various
regions of Serbia hence no interest to make compensations uniform
* Burning issue - WHIPLASH
 Major problem in non-material damage settlement up to 2009, both
medical and judicial practice recognized subjective over objective criteria
 Since 2009. significant change in judicial practice, no more diminished life
ability on the ground of whiplash, less compensation (pain and fear in
minimum amounts)
30
Thank you for your
attention!

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