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17 February

Rise assistance: opportunities, advantages and prospects of remote settlement of insured cases

Price competition in the insurance market of Ukraine is gradually disappearing into the past, and the level of service that insurers are gaining is gaining more and more importance.

First of all we are talking about the quality of settlement of insurance cases. After all, just how quickly the company is able to solve the insurer's problems and compensate for the losses received by them will be the best recommendation for it.

In principle, in terms of speed of settlement (in this case, it is about CASCO), insurance companies have achieved good results. Payments for many insurance cases are made within 5-7 days. But this is by no means the limit. And insurers have long been studying the possibility of implementing a mechanism for remote settlement, which has proven itself in countries of Western Europe, where almost every second insurance incident is resolved according to statistics without the explicit intervention of the insurance company.

How does this happen? It's very simple. The essence of the remote settlement lies in the fact that the client who got into an accident is relieved of the need to go to inspect damage, collect some information and documents. His car directly from the scene of the accident is sent to the warranty or the nearest partner service station, and the victim receives a substitute car for the time of repair.

Thus, the policyholder wins twice. Instead of waiting impatiently for a decision on payment, he receives a refurbished car in a few days. In this case, no trips to the insurance company, examinations and other red tape. In addition, the client through a personal web-office or mobile application can track how the repair of his car is progressing.

And yet, Ukrainian companies are not in a hurry to launch a remote settlement system massively. This requires considerable investment. Plus, this mechanism is suitable only for those insurance cases where there is no major loss or total destruction of the car, and the fault of the parties is obvious. Then the company can make a decision on payment without trial and detailed investigation. Also, do not forget about the risks of fraud. Even in developed countries, up to 10-15% of payments fall into the hands of dishonest insurers. And, unfortunately, remote settlement gives an opportunity for all sorts of frauds. The simplest version is a dramatization of an accident in order to "heal" the damage caused to the car by the insurance company once upon a time.

However, experts believe that in 2-3 years the situation can dramatically change: in order to receive payment, the customer will only need to make one call to the hotline of the insurance company. In addition, the opportunities for building entirely new ideological mechanisms of settlement are enormous. And the insurer's task is not only to debug the work of its back office in such a way that the client receives a payment in the shortest possible time, but also minimizes the amount of losses. Moreover, insurance companies can do this not only on their own (which for many is an issue in view of the limited resources for developing and implementing such solutions), but also to outsource some of the functions.


A good example is the satellite security system Benish GUARD and telematics BE inSURE from Benish GPS company. The first product solves for the insurer the problem of growing unprofitableness, since Benish Guard provides a comprehensive and, most importantly, effective protection of the car. For more than 13 years, during which this system exists in Ukraine, no hijackings have been recorded. In addition, for about three years now Benish GUARD has been installed by the largest insurance companies within the CASCO products to give customers additional protection.

"Using our products, the insurance company more rationally distributes its own resources, both human and financial, and optimizes the settlement process," - Benish GPS Vice President, Moshe Benish.

The advantages of the system are obvious. The controller, connected to the vehicle's on-board network, door and trunk opening sensors, makes it practically impossible for a vehicle to be accessed by third parties. But even if the attackers somehow got into the car, the system immediately reports this to the control center of Benish GPS, and its employees immediately react to the alarm. They communicate with the car owner, find out from him whether he is near his car or not, and if there are suspicions that intruders have penetrated into the car, block the engine and call police. "Thus, the car remains with the rightful owner, and the company is not forced to pay a large loss," explains Benish GPS vice president Moshe Benish.

Telematics BEinSURE also plays an important role in the development of remote settlement. This is not just a device that collects statistics about the car on which it is installed. Its functionality is much broader.

Firstly, this product stimulates the driver to drive the car more carefully, as BE inSURE collects statistics on the vehicle's behavior on the road (rebuilding, overtaking, abrupt maneuvers), and informs the driver what will be his discount on CASCO when it is prolonged for a new period. So, not only the customer who gets a fair tariff wins, but also the insurance company that flexibly manages the loss.

Secondly, BEinSURE allows you to monitor the technical condition of the car, reporting errors and problems, as well as communicate with the insured through a special application on the smartphone. This means that in the event of an accident, the client can promptly inform the insurer about the accident, which will substantially speed up the process of receiving the payment. "As a result, the insurance company makes more efficient use of resources (both human and financial) and optimizes the settlement process," summarizes Moshe Benish.