Policing operational compliance in a global insurance company

YOU WILL NEED ADOBE FLASH TO VIEW THE DASHBOARD. 

Insurance companies allow operations in their distribution networks (Coverholders) to act on their behalf but limit that authority to opertions within their Coverholder rules.   This SmartControls dashboard reports those instances where Coverholders of a global insurer failed to abide by the limits of their authority and identifies the limits of which rules they broke.

It reports the common SmartControls message of failure to operate within sanctioned levels of delegated authority.  It reports:

• where people are not doing what you expect
• the value of the risk you face because if it
• an indication of the effort required to fix it

This dashboard reports failures to comply for the Property and Casualty lines of business.   We have also identified similar risks for personal lines (flood risk) in the same global insurer.

You should note that the data came from proofs of concept that showed the information needed to monitor lapses was readily available at the agents but not reported to the insurer and therefore not detected by the insurers or their underwriters.  Bordereaux (as the Coverholder submission are generally known) had the primary purpose of recording financial information required to proces the insurance transaction and had therefore failed to collect the information that would have allowed the company and its underwriters to carry out this assessment. 

The projects detected 6 serious lapses in the 32 cases submitted in one month by the insurer’s most profitable agency.  It also detected 1,500 unauthorised insurances of properties in high flood areas in a single monthly bordereaux (31,000 lines) submitted by a call centre