FogSoft: Insurance administration

Automation of work of department of insurance in bank is directed to support of business processes on work with insurance companies taking into account requirements of constantly changing business. Accounting of insured events regarding loss of pledge and control of payments of compensation by insurance companies, control of timeliness of the conclusion by borrowers of insurance contracts and carrying out payments of insurance premiums according to the payment schedule.

In the existing automated banking systems very superficial attention is paid to processes of insurance. However the circle of solvable tasks of departments of work with insurance companies is wide and requires serious approaches to accounting, monitoring and the reporting. Accurately smoothly running processes of insurance administration is a reduction of risk of loss or damage of a subject of pledge.

Control of timeliness of the conclusion by borrowers of insurance contracts and carrying out payments of insurance premiums according to the payment schedule first of all is important for Bank. Preventive work with clients – advance informing on convenient communication channels (mail, call-down, SMS, etc.), allows to build up the relationship at qualitatively new level and yields the best result from all possible.

The solution "Insurance Administration" developed by Fogsoft company is intended for support of business processes on work with insurance companies taking into account requirements of constantly changing business.

Accounting of insured events regarding loss of pledge and control of payments of compensation by insurance companies – also the major process requiring attention.

One of the central business processes is the motivation of partners: the organizations signing insurance contracts. The Agency Fee (AF) paid by insurance companies shares between Bank and partners on the basis of flexibly configured set of business rules. The amount of AV which is due to bank and partners can depend on year of insurance, an action, sales volumes, an effective rate and other conditions. These conditions are reflected in agency agreements and are considered in a system in the form of decision trees. Such approach stimulates sales of insurance products and allows bank to gain a notable additional income from insurance.

Use of the Insurance Administration system allows:

• Reduce the level of unpaid amount of insurance policies from 10 to 30%, reduce the risks connected with pledge loss;
• Reduce operating costs on insurance business processes on average twice;
• Reduce quantity of errors in data and business processes by 2-3 times;
• Get an additional profit on an agency fee;
• Increase the level of satisfaction of partners due to economy of their working time and the flexible system of motivation;
• Increase the level of comfort of employees of the bank.

The dashboard of the head in the Insurance Administration system allows to make management decisions on the basis of monitoring of key performance indicators (KPI) and the analysis of trends. The dashboard of the head is created using the separate solution for analytical data processing developed by Fogsoft company. Drill-down the analysis gives the chance to receive the detailed report on separate indicators. The solution collects statistical data taking into account history and displays them in the form of indicators and charts: key indicators, current agreements of insurance, the number of insured events, prolongations and Collection, revenues of Bank from an agency fee in a month and other reports.