The Customer Orientation Service of Spanish Brokers in the Insurance Industry: The Advisory Service of the Insurance Distribution Channel Bancassurance

This research focuses on the customer orientation of insurance brokers, whose activity is regulated by the Law on the mediation of private insurances and reinsurances. The goal is to ascertain whether the intermediation inherent in the insurance broker’s activity, which implies a customer-oriented service, entails a positive behaviour that transcends the immediate environment, reaching society. This study presents a comparative analysis between the insurance brokerage society, characterised by a personalised customer service, and banks’ advisory services on insurance. To this end, the study uses a sample of insurance brokerage firms in Spain. The results presented in this study suggest that the customer values the advisory service provided by the broker. However, for a particular business segment in standardized insurance products and products related to banking assets, customers are more likely to resort to the bank’s services. In addition, the results indicate that the commission percentages applied by the entities operating in the banking insurance channel exceed those perceived by the insurance broker. With all this, intermediation in the development of the insurer’s activity can entail social behaviour that involves customer-orientation and, possibly, social service and environmental performance.

Rules for Co-manufacturing and Governance of Insurance Products by an Insurance Undertaking and an Insurance Broker in the Light of Insurance Distribution Regulations

The entry into force of the Directive (EU) of the European Parliament and of the Council on the distribution of insurance, the Commission Delegated Regulation (EU) supplementing Directive (EU) 2016/97 of the European Parliament and of the Council with regard to product oversight and governance requirements for insurance undertakings and insurance distributors, as well as the Insurance Distribution Act of 15 December 2017 have created new opportunities for cooperation between insurance companies and brokers involving insurance products co-manufacturing and management. Such cooperation remains an exception to the principle of inadmissibility of brokers’ permanent contractual relationship with insurance undertakings, specified in Article 30 para. 1 point 2 of the Insurance Distribution Act. The article presents legal provisions relating to an insurance product manufacturing and governance and contracts regulating such cooperation. Its authors seek to answer a question whether it is necessary to maintain brokers’ independence from insurance undertakings in the course of an insurance product development and governance, and finally discuss the benefits and risks resulting from it.

The Customer-Oriented Service of Spanish Brokers in the Insurance Industry: The Advice Service of the Distribution Channel Bancassurance

This research focuses on the customer orientation of insurance brokers, whose activity is regulated by the Law of 26/2006 of July 17 on the mediation of private insurances and reinsurances. The goal is to ascertain whether the intermediation inherent in the insurance broker’s activity, which implies a customer-oriented service, entails a positive behaviour that transcends the immediate environment, reaching society. This study presents a comparative analysis between the insurance brokerage society, characterised by providing a personalised customer service, and banks’ advisory services on insurance. To this end, we study the evolution of the total volume of business and new production, compared for a portfolio of insurance products. The results presented in this research suggest that the customer values the advisory service provided by the broker. However, for a particular business segment in standardised insurance products and products related to banking assets, customers are more likely to resort to the bank’s services. In addition, the results indicate that the commission percentages applied by the entities operating in the banking insurance channel exceed those perceived by the insurance broker. With all this, intermediation in the development of the insurer’s activity can entail an ethical and social behaviour that involves customer-orientation and, possibly, social service, which does not always benefit the insurer.

Obligations of Insurance Broker as Insurance Distributor

The Insurance Distribution Act introduced a wide variety of notions and imposed a number of new statutory obligations, in particular, the definitions of insurance distribution and insurance distributor. The aim of the article is to present the statutory obligations imposed on insurance and reinsurance brokers as insurance distributors. The author points out that these duties can be divided according to different criteria and emphasizes that the broker's obligations towards the client are the most important in insurance practice. She discusses the duty to analyse client's needs and requirements, to prepare brokerage recommendation and provide a product card or prepare it if the broker is its creator. Moreover, she discusses the necessity to reveal the nature (and sometimes even the amount) of brokerage remuneration as well as to give the information about the method and procedure of handling claims (so-called claims policy). Having analysed the statutory obligations imposed on the insurance broker, the author comes to the conclusion that the basic purpose is the protection of clients and their interests. However, there is a concern that some duties might be treated as formal ones to be fulfilled in order to avoid legal liability. Additionally, the obligation of loyalty towards the client may be derived from the duty to keep good faith and perform due diligence.

Directions of World Insurance Market Development in Transnational Business

The subject of the study is the world insurance market, its trends and prospects for development on the example of leading countries. The aim of the work is to identify the features and patterns of insurance in the field of transnational business on the example of a transnational insurance broker (SB) Arthur J. Gallagher & Co (AJG). Research methods: statistical analysis, formal and logical modelling of socio-economic processes. The results of the study consist in a comprehensive description of the insurance business of the broker AJG, implementing various strategies to work in national markets. Activity in the States on development of insurance services is carried out taking into account positive and negative tendencies of the world market. The complexity of the present situation is the increasing risk of economic recession, reflected in the reduction in the volume of insurance coverage. Adaptation consists in consolidation of capital, strengthening of positions of the largest and stable companies. AJG has gained access to emerging markets in countries previously closed to transnational capital, but the mission and strategy need to be adapted to national circumstances. The scope of application of the results can be in the commercial field in the activities of the leaders of the insurance market of Russia in planning the strategy of its activities and ensuring the competitiveness of services in the global market. In modern conditions of development of the world insurance market the advantages of leading companies are connected with internal financial and economic stability, flexibility of strategies of penetration into national markets, pronounced social orientation of business.

KAJIAN PROSEDUR PELAPORAN DAN PENANGANAN KLAIM ASURANSI TOTAL LOSS ONLY KENDARAAN BERMOTOR (Studi di PT Asuransi Jasa Indonesia {Persero} Cabang Surakarta)

<p>Abstract<br />The aim of this article is to find out the procedure of reporting indemnification notice, claim handling in Asuransi Jasa Indonesia Inc. branch Surakarta, and the problem that appears in the procedure of reporting and handling Total Loss Only Insurance claim in Asuransi Jasa Indonesia Inc. branch Surakarta along with its problem solving. This research is an empirical-descriptive law research with qualitative approach. The data collection technique used is an interview on the claim section in Asuransi Jasa Indonesia Inc. branch Surakarta and a literature review. Based on the research and discussion, there is a conclusion as the result. First, inn the stage of reporting procedure the insured can report to the insurer, designated workshop, or call the agent or insurance broker. There are several obstacle in the stage of handling claim such as, the damage survey, claim analysis, vehicle repair in the workshop, and claim payment. Second, the reporting implementation obstacle and claim handling in Asuransi Jasa Indoneseia Inc. branch Surkarta in terms of reporting procedure includes an information notification delivery by the insured which is not in accordance with the facts. The solutions in the reporting procedure stage is the insurer must be more vigilant to the insured who indicated does not have a good ethicto report and the insured must behave well in order to finish reporting process effectivel. The obstacle in claim handling stage includes claim submission process to the previous headquarter. The solution is point out a company valuer of insurance loss to calculate the loss.</p><p>Keywords: Insurance, Claim, Total Loss Only, and Vehicle.</p><p>Abstrak<br />Artikel ini bertujuan untuk mengetahui prosedur pelaksanaan pelaporan pemberitahuan ganti kerugian dan penanganan klaim asuransi total loss only di PT Asuransi Jasa Indonesia Cabang Surakarta dan permasalahan yang timbul dalam prosedur pelaporan dan penanganan klaim asuransi total loss only pada PT Asuransi Jasa Indonesia Cabang Surakarta beserta dengan solusi untuk mengatasinya. Penelitian ini merupakan penelitian hukum empiris bersifat deskriptif dengan pendekatan kualitatif. Teknik pengumpulan data yang diguanakan dengan wawancara pada Bagian Klaim PT Asuransi Jasa Indonesia Cabang Surakarta dan studi pustaka. Berdasarkan hasil penelitian dan pembahasan telah dihasilkan kesimpulan. Pertama, dalam tahapan prosedur pelaporan tertanggung dapat melaporkan kepada penanggung, bengkel yang ditunjuk atau menghubungi agen/broker asuransi. Dalam tahapan penanganan klaim, yaitu survei kerusakan, analisa klaim, perbaikan kendaraan di bengkel dan pembayaran klaim. Kedua, hambatan dalam pelaksanaan pelaporan dan penanganan klaim PT Asuransi Jasa Indonesia Cabang Surakarta <br />dalam hal prosedur pelaporan mencakup penyampaian informasi pemberitahuan oleh tertanggung yang tidak sesuai dengan fakta. Solusi bagi hambatan pada tahapan prosedur pelaporan adalah penanggung harus bersikap lebih waspada terhadap tertanggung yang berindikasi tidak mempunyai itikad baik dalam melakukan pemberitahuan. Sedangkan hambatan dalam hal penanganan klaim mencakup proses pengajuan klaim ke kantor pusat yang lama. Solusi yang dapat diambil adalah dengan menunjuk perusahaan penilai kerugian asuransi untuk dapat membantu dalam perhitungan penilaian kerugian.</p><p>Kata kunci: Asuransi, Klaim, Total Loss Only, dan Kendaraan Bermotor.</p>