GREEN CARD BUREAUX ANDCORRESPONDENTS within the Green Card System Tjaša Korbar Tjaša Korbar...

GREEN CARD BUREAUXGREEN CARD BUREAUX

ANDAND

CORRESPONDENTSCORRESPONDENTSwithin the Green Card System within the Green Card System

Tjaša KorbarTjaša Korbar

Slovenian Slovenian Insurance Association Insurance Association

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GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October 2014 2

Happy 20th Happy 20th

Anniversary !Anniversary !


NATIONAL BUREAU NATIONAL BUREAU andand CORRESPONDENTS CORRESPONDENTS

BrainstormingBrainstormingOn different levelsOn different levels − − CoB and CoB and

national marketsnational markets


NATIONAL BUREAU NATIONAL BUREAU andand CORRESPONDENTSCORRESPONDENTS

RelationshipRelationship??

Description with key words: Description with key words: Knowledge − Cooperation − Guidance − FinanceKnowledge − Cooperation − Guidance − Finance – – ControlControlWays, methods and levels of co-operation depend onWays, methods and levels of co-operation depend on: - Size of a market/country, number of members, agents, correspondents, - Experience, tradition within the GC System, Council of Bureaux, - National specialities (legal, organisational − GCB, GF, IC, CB, Association).


NATIONAL BUREAU NATIONAL BUREAU National Bureau − central organisation being on: National Bureau − central organisation being on: INTERNATIONAL level:INTERNATIONAL level:• a link between national MTPL markets and Council of Bureaux and vice versa,• a guarantor for obligations of its members in other GC countries,

NATIONAL level:NATIONAL level: • centre in respect of international claims/cross border accidents in the GC country,• guarantor (to claimants) for obligations of foreign national bureaux and its members,

Both levels: Both levels: a hub of knowledge on MTPL legislation, insurance

and compensation law and claim settlement of cross border accidents, and so

rresponsible foresponsible for: : - - effective implementation, performance of national/international legislation,effective implementation, performance of national/international legislation,

- competence and effectiveness in claims handling procedures, - competence and effectiveness in claims handling procedures,

- creation- creation and promotion of best business practice and related supervision,and promotion of best business practice and related supervision,

- - active participation active participation in in creation of the creation of the related related nationalnational/EU /EU legislationlegislation, , international agreementsinternational agreements..


The role of National Bureau (NB) towards The role of National Bureau (NB) towards claimantsclaimants

The role of National Bureau (NB) towards claimants (as The role of National Bureau (NB) towards claimants (as the the final final guarantor guarantor representing members, agents, correspondents in respect of representing members, agents, correspondents in respect of international claims): international claims):

•raising public awareness and education/training of potential claimants how to react in respect of accidents involving foreign motorists and who to contact (web site info, telephone and e-mail contacts, press conferences)

• assistance, information to claimants where, how to file international claims,

• dealing with complaints of claimants against unprofessional conduct of correspondents, agents.


The role of NB towards The role of NB towards national authoritiesnational authorities

The role of National Bureau (NB) towards national authorities (as The role of National Bureau (NB) towards national authorities (as the the central central organisationorganisation representing members, agents, correspondents in respect of representing members, agents, correspondents in respect of international claims):international claims):

- information on changes in GC system, control of MTPL insurance of motor vehicles from abroad, co-operation and data exchange as regards police reports and other − Ministry of Interior,

- co-operation and data exchange as regards registered motor vehicles − Ministry for Transport,

- co-operation on effective implementation and performance of actual legislation concerning international claims and preparation of new insurance legislation − Ministry of Finance, Ministry of Interior, Ministry for Transport, Supervisory Agency.


CORRESPONDENTS

What is the role and importance of correspondents?What is the role and importance of correspondents?(insurers − loss adjusters − others)

Settled approx. 62 % of all Settled approx. 62 % of all 365,251 365,251 GC claimsGC claims (2013 CoB GC claims statistics)(2013 CoB GC claims statistics)

Quality of services provided by correspondentsQuality of services provided by correspondents − −

NB’s responsibility that the claims are handled correctlyNB’s responsibility that the claims are handled correctly..

Financial capacity of correspondentsFinancial capacity of correspondents − NB’s responsibility that the victims are compensated NB’s responsibility that the victims are compensated in time in time (sufficient financial strength to make advance payment to victims(sufficient financial strength to make advance payment to victims))..


Guidance, Cooperation and ControlWays and methods of guidance and co-operation − National Bureau (NB) towards members, agentsWays and methods of guidance and co-operation − National Bureau (NB) towards members, agents, , correspondentscorrespondents ((proactiveproactive, , dynamicdynamic approach of NBapproach of NB):):•Monitoring and supervision of members, agents, correspondent and its functioning: -- observing and keeping of professional principles,

- (non)systematic control of files handled by members, agents, correspondents (especially court cases),

- assistance, consultancy, enhanced communication especially in case of problems, complaints,

•Information on changes, developments in GC system and other: - circulars, newsletters, web site info,

•Contacts and meetings with members, agents, correspondents: - discussion on common problems, novelties within the GC system,

- and if necessary creation of common solutions through guidelines, recommendations,

•Dealing with complaints of claimants on unprofessional conduct and possible measures •Training, education of insurance workers dealing with international claims:

- organization of seminars, workshops, working visits etc.

•“Open door” of NB any time to discuss particular problems with member(s), agent(s), correspondent(s),


NATIONAL BUREAU NATIONAL BUREAU andand CORRESPONDENTSCORRESPONDENTS

Relationship between NB on one side and correspondentsRelationship between NB on one side and correspondents on on

the other sidethe other side is based onis based on ddifferent platforms:

legal

control

cooperation and

providing/exchange of information regarding the GC system educational,

which which have their dynamic have their dynamic internationalinternational and and nationalnational dimension.dimension.


Where are we today?International level International level − − Council of BureauxCouncil of Bureaux::•Internal Regulations, and Correspondents’ Charter (2009), Handling and Payment Model Agreement, Recommendations for Conditions for Outsourcing Claims Handling by Correspondents

•On line Guarantee Call System

•Annual meetings of CoB with International Claims Handling Agencies

•Circulars, web site info, etc.

•CoB Academy (CoBAc) − Basic, Advanced


Where are we today?National level − National GC Bureaux:National level − National GC Bureaux:•National Legislation, and different Internal Rules of National Bureau (Constitution, statutes, regulations, contracts, code of practice etc.)

•Supervision, auditing, control of correspondents, files (systematic, regular or irregular − especially where a complaint/law suit is filed by the claimant)

•Working Bodies within the NB (participation of members − insurers) / Meetings between NB and correspondents

•Circulars, web site info, etc.

•National, international seminars, conferences, workshops organised by NBs and also by insurers/agencies


Where do we want to go?

Do today Do today ((allall)) National Bureaux prudently National Bureaux prudently::

-perform their responsibilities provided by the law, and perform their responsibilities provided by the law, and

-manage different risks in respect of claims handling of manage different risks in respect of claims handling of international GC claims especially when the claims are international GC claims especially when the claims are handled by correspondents?handled by correspondents?


Actual situation? Satisfactory?National Bureau (NB) National Bureau (NB) –– members, agentsmembers, agents andand correspondentscorrespondents??

• Is a NB considered as a central organisation with its role of guidance in respect of GC system/claims in a country? Is it recognised as such by members, correspondents, agents and also by authorities and claimants?

• Do members, correspondents, agents want to co-operate with the NB and to what extent/level? Are they obliged to co-operate? Is it up to them to decide about it or regulated?

What /Where are the limits on the side of NB and what on the other side?

• How could a NB motivate member(s), correspondent(s) and agents to actively co-operate, transfer and exchange information? Is there a legal framework necessary?


Actual situation? Satisfactory?

National Bureau (NB) National Bureau (NB) –– members, agentsmembers, agents andand correspondentscorrespondents??

•What kind of legal framework/basis for guidance, co-operation, control, financing do we need?

•How is the guidance, co-operation, control, financing different when the NB co-operates with its member(s) and agent(s), correspondent(s), which are claims handling agencies?

•Measures, sanctions of NB against defaulting members, correspondents, agents?

Are they different against member(s) and agent(s), correspondent(s) being claims handling agency?


Where do we want to go?What areas could/should be changedWhat areas could/should be changed/ / improvedimproved // introduced in relations: NBs and correspondents?introduced in relations: NBs and correspondents?• Changes to legal platform?

•Control?

•Cooperation?

•Information?

•Education?

•?

Is it necessary Is it necessary to increase the scope of common, binding rules, to increase the scope of common, binding rules, conditions, restrictionsconditions, restrictions within the Council of Bureaux to enhance and within the Council of Bureaux to enhance and safeguard the financial stability of the Bureausafeguard the financial stability of the Bureauxx/GC system and the quality /GC system and the quality of the servicesof the services in GC claims handling? in GC claims handling? (liberalised market, free (liberalised market, free competition!)competition!)


We all must We all must build in a build in a little stone little stone

in the mosaicin the mosaic ofof cross cross border border

claim handling! claim handling!

GREEN CARD BUREAUX ANDCORRESPONDENTS within the Green Card System Tjaša Korbar Tjaša Korbar...

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