ETASS - Electronic Transaction Analysis and Settlement System
The ETASS project has been envisaged as a platform to bring in transparency and ease of settlements of transactions between the General insurers in India. This is based on the coinsurance agreement of 5th Dec 2014, signed by all the companies and the ETASS guidelines mandated by the IRDAI in May 2015, assigning General Insurance Council the role of ETASS administrator. The project is being rolled out in phases.
The ETASS phase 1 project dealt with the coinsurance transactions in the Fire LOB only. The initial software was developed with the capability of capturing input data of coinsurance premium and claim transactions in a pre-defined XML format from Lead insurer. This data from the Lead insurer could then be accessed by other Coinsurers who could then confirm or dispute the details therein. Based on the confirmations of all participants, the financial exchanges could occur.
The ETASS Phase 2 project deals with capturing of the correct transactional values for Fire LoB with associated Facultative Reinsurance transactions. The software development has dealt with the vagaries of the different processes followed internally by the various insurance companies and has standardised data upload into ETASS. GICouncil has suggested certain process mandates to be followed by all Member companies. There is a generation of statement of settlements of accounts every fortnight to be used prima facie for remittance of funds amidst member companies. This phase was made Live on 1st April 2016.
The ETASS Phase 3 has now been rolled out. ETASS Phase 3 will deal with the integration of coinsurance balances from all LOBs. The intercompany transactions in all LOBs will be captured on the system and the same process of confirmation/dispute will be handled leading to actual settlements . It is envisaged that the settlements will be made online at the end of the phase.
Initiative to address fraudulent cases
The General Insurance industry provides risk transfer solutions across varied assets and risks. Given the scale of operations, frequency of transactions and involvement of multiple parties, there have been instances where fraudulent practices have come to light. These fraudulent practices, many of times have not only caused losses to insurers but also impacted the trust and credibility of the industry.
Taking cognizance of the problem, the Council has initiated steps to set a roadmap to address the issue. The Council would facilitate information sharing amongst its Members on fraudulent cases. Such information sharing would focus on identifying methodologies and specific instances of fraud. The initiative would be anchored by working group comprising senior representatives from the industry.
The fraud risk management portal has been created for this purpose. The insurers will submit their list of suspected fraudulent cases wioth details of the fraud and the fraudsters involved which can be used by all member companies as a cautionary checklist before proceding with their transactions.
In addition, the GI Council has engaged Lexis Nexis to create a fraud analytics platform, wherein the data provided by the companies will be analysed and matched and suspicious cases and relationships will be brought to the forefront for suitable action by the companies. The industry level analysis of the frauds will also be available and the same can used for taking preventive measures and reforms at an industry level.
The GI Council has taken up standardisation of wordings for the industry as a project. Technical working groups comprising of representatives from the member companies have been formed for the same. The wordings applied to the various businesses are being deliberated to bring out a standard and clear set for use by the industry.
Scale up of GI Council website
The General Insurance Council website is envisaged as an effective medium for communication, engagement and value addition to the Industry. As importantly, the website would be a key channel to disseminate know how about the Insurance Industry to consumers at large.
The Council website would carry data and analytics on key industry parameters. Reports released by the Council would be accessible via the website to members and registered users. The website would facilitate online discussion/debates for focused industry interaction on identified issues.
Stolen Vehicle Database and Recovery
Further to the first workshop on stolen vehicles co-organized by the Haryana Police Academy, Madhuban and General Insurance Council on 22nd July, 2012, Senior Haryana Police Officials extended their support and encouragement to all participants and representatives from the Insurance Regulator & Industry. The Insurance Information Bureau presented the ‘SMS Facility for Stolen Vehicles Recovery Information System” launched to assist Police to enquire about status of vehicles which have been reported as stolen.
The stolen vehicle data is being received by the GI Coun cil at regular intervals. It is envisaged that with the help of the Insurance Information Bureau "Stolen Vehicles Recovery Information System", the vehicles can be categorised and given over to the respective insurance companies for due disposal and treatment as deemed fit.