Bullet Answers on: Underwriting Excellence in General insurance & Motor Pool

This blog contains bullet points on a very interesting topic and viewers are free to express their opinion.

UNDERWRITING EXCELLENCE NEEDS TO ADVANCE CONTINUOUSLY TO ENHANCE CUSTOMER BENEFITS:

1. Good Underwriting displays mature Corporate capabilities, help capacity building and generate customer value.
2. Underwriting entails strict discipline and requires structured decision making, uniformity and consistency in approach.
3. It needs to translate individual experience and skills into corporate insights and learning.
4. Underwriting should be for profit and should focus on return on capital.
5. Rigid adherence to sound underwriting practices ensure staying competitive and ensures long corporate life.
6. It reduces costs to the insurer and after sales service and it also helps to reduce claim cost.
7. It is platform for customer understanding and dialogue, thereby helping the organisation to reduce the potential for grievance and disputes.
8. The challenge for the organisation is to build and sustain a sound underwriting culture and to establish and live by a clear set of principles in face of contrary market practices.
9. Temptation to fall for short term growth oriented strategy or cash flow underwriting at the cost of undermining underwriting foundations can lead decline in both profit and reputation.
10. Alignment of risk covers as perceived by customers to the actual insurance product and to convert underwriting into core competency can bring underwriting excellence that will ensure enhanced customer benefits and their longer association with insurers.

MOTOR POOL:-

1. IRDA directed setting up of India Motor Third Party Insurance Pool(MTPIP) by all General Insurers in India to collectively serve commercial vehicle insurance business.
2. This arrangement has become effective from 1st April 2007 and GIC is the manager of MTPIP.
3. All registered general insurance companies are the member of this Pool.
4. Motor Pool is the corpus to which all insurers have to collectively, mandatorily & automatically contribute proportionate to the company's market share.
5. Out of the total premium ceded by member companies to GIC Motor TP Pool 10% (from 2008-09) is retained by Pool and balance 90% is retro-ceded to pool members in proportion to the gross direct premium.
6. Cession of Premium to Pool and retro-cession from GIC is accounted as re-insurance transaction. Incurred claims and Unexpired Risk Reserves on retro-cessions are accounted for on the basis of advices received from Pool.
7. All operating offices of the Pool member companies underwrite CV insurance and they use to receive 10% reinsurance commission till last year on premium booked.
8. The Pool underwrite liability policies and liability portion of package policies of all commercial vehicles segment.
9. Underwriting, claims settlement and provisioning of the pool is done as per the directives of G.I. Council.
10. Pool arrangement has encouraged both private and public sector insurers to write this portfolio which was in their denial list earlier.

know more on Motor Pool -visit the IMTPIP site at the following link  
:http://motorpool.co.in/index.html 

E-mail  Your comments on ........ vinay.orientalinsurance@gmail.com  or vinayverma@orientalinsurance.co.in

What is General Insurance - check answer at http://www.irdaindia.org/iac/whatisgeneralinsurance.htm