Page 405 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

highest losses with claims ratios inching towards the
100% and 300% mark.

Part of the reason for the high claims is the high level of
soft frauds & inflated bills. Non-life insurers, plagued
with high losses under motor and health insurance can
improve their claims ratio by utilizing information
technology. In developed markets customer intelligence
solutions have helped insurers in predicting claims,
detecting frauds and frightening up their underwriting
practices.

The solution works on the 80:20 principle which means
that 80 of the solution is based on pre-built set of models
that are used internationally while there is 20% adaptation
for the local market. The growth in the insurance industry
has been more rapid than the overall growth in the
economy.

While the improvement in insurance penetration is
significant, it is still nowhere near the world average of
8.14%. But the world average has been pushed up due
to developed countries where higher disposable income
leads to higher purchase of insurance.

In developing countries, the relevance of insurance to
the economy is typically lower because for a large

Sashi Publications - www.sashipublications.com 405

Copyright@ The Insurance Times. 09883398055 / 09883380339