Market agreements Flashcards
Why do you think insurers have arranged agreements amongst themselves?
In the past, market agreements were introduced with aims to :
promote good relations between insurers.
speed up the repair and claims settlement procedure
Market agreements, have largely been discontinued and replaced by individual agreements between insurers. Such as:
BI-lateral agreements and ABI personal effects contribution agreements
Where Insurers enter into bi-lateral agreements with others who operate in the same market, what’s the benefit of doing this?
Insurers can engage with similar, like-minded insurers which may share the same philosophy or underwrite a similar book of risk.
What’s an example of a Bi-Lateral Agreements?
The motor insurance subrogation portal
Who is The Motor Insurance Subrogation Portal?
is for insurers who operate on the agreement, which some insurers subscribe.
What’s the function of the Motor Insurance Subrogation Portal?
Insurers who operate the agreement, on a bi-lateral basis, enter details into the portal of claims against another insurer as they are reported. If liability is agreed then (on uploading details of its outlay) the ‘non-fault’ insurer will receive settlement electronically from the ‘at fault’ insurer quickly and without further evidencing.
What’s the benefit of the Motor Insurance Subrogation Portal?
Saves time spent in seeking agreement on liability, validation and agreement of outlay, and even the cost of writing letters, as everything is processed through the online portal.
Writing letters is costly for insurers who use of the Motor Insurance Subrogation Portal?
FALSE ,,, (Writing letters is NOT costly for insurers who use of the Motor Insurance Subrogation Portal)
Liability, Validation and agreement of outlay takes time when using the Motor Insurance Subrogation Portal?
FALSE,,,(Liability, Validation and agreement of outlay does NOT takes time when using the Motor Insurance Subrogation Portal? )
the Motor Insurance Subrogation Portal takes a lot of time to settle and in seeking agreement?
FALSE ,,, (the Motor Insurance Subrogation Portal does NOT take a lot of time to settle and in seeking agreement?
Example 6.4
Two insurers sign a bi-lateral agreement with each other and connect their IT
infrastructure to an online subrogation portal.
On a daily basis, each insurer’s system automatically uploads basic details of new claims reported where the other insurer is involved. These details include the vehicles, driver and circumstances of the accident.
Within 24 hours, each insurer will respond electronically. They will either confirm that the details match and that liability is agreed, or else, remove the case for manual review.
For cases remaining in the portal, once the non-fault insurer’s outlay is established, this is uploaded to the portal, again electronically by the system, whereupon a settlement is requested. It is paid by the at-fault insurer automatically and without delay.
The process involves little in the way of manual intervention, and so reduces the chance of delay, error or backlog, meaning the insurers can improve efficiency.
The process of the Motor Insurance Subrogation Portal takes a lot of manual intervention and chances of delay and error or backlog are very high, and insurers can’t improve efficiency?
FALSE ,,,
(The process involves little in the way of manual intervention, and so reduces the chance of delay, error or backlog, meaning the insurers can improve efficiency)
The at fault insurer pays automatically automatically without delay, once settlement is requested.
True
What details are included in the motor insurance subrogation portal?
The circumstances of the accident, driver and vehicles.
The motor insurance subrogation portal requires a confirmation?
Within 24 hours, each insurer will respond electronically. They will either confirm that the details match and that liability is agreed, or else, remove the case for manual review.
