Page 324 - Motor Insurance Ebook IC 72

The Insurance Times

The results of past loss experience has to be interpreted
in the light of changing conditions surrounding motor
insurance business. Some adjustments will have to be
made and the figure, to some extent, projected into
the future taking into account annual increase in the
number of vehicles, increase in population, changes in
road construction, changes in common or statutory law,
trends of third party awards, etc.

In other words, past loss experience will have to be
converted into prospective loss experience by suitable
adjustments.

The value of motor insurance statistics depends upon
the correctness of the figures and the speed with which
they can be produced. The collection, collating and
interpreting of statistical data has been considerably
simplified with the information Technology Revolution.

The IT platforms have made it possible to capture a
large variety of information and subject to analysis. A
few motor insurers in India have been able to decide
premium rates on "real -time" basis i.e. their systems
are recording data of premium and claim on a
continuous basis, this in turn is assisting them in quoting
premium rates for a particular risk on immediate loss
experience ratio.

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 324

Copyright@ The Insurance Times. 09883398055 / 09883380339