And as for the future of ORINCO what they hope to accomplish within the next ten years, their executive secretary Andrew Roe gave us more details on their latest project, the formation of a claims bank, a database that will hold all motor claims data from each insurance company. Roe explained to us how it works, and how they will benefit from its use.
Andrew Roe, Managing Director, RF&g Insurance
"So the members of ORINCO who do motor insurance are currently investing in what is called a claims bank and what that is, is a database where we will be able to share all of the motor claims data that each of the insurance companies has. What that will mean for consumers is at the moment we rely heavily on trust, so we trust that the customers are providing us accurate information about their driving history and maybe their claims history. This claims bank will allow us to validate that information to confirm whether or not somebody is a good driver from an underwriting point of view. Insurance companies will be able to have greater insight into the customer's driving history and should be able to make a better decision on how to price that product. In some cases if you are a good driver you might be able to see benefits in reduction of premiums. In other cases if you're not a great driver and you've been telling insurance companies that you are and maybe you've been hopping around from insurance company to insurance company they will know. Those persons' prices will go up and so what at the end of the day we seek to accomplish is to make the rating in these insurance products for motor more specific so those who are good drivers would not suffer as much any longer for those who are bad drivers, that is the first part. The second part is fraud detection, fraud in motor insurance is prevalent, Fraud at the end of the day costs everybody not just the insurance companies because when the insurance companies have been defrauded premiums have to be collected from the customers. reducing that instance of fraud being able to identify fraudsters within the system and removing them from the system and taking action to prevent them from committing fraud any longer will help the industry and will help customers at the end of the day by making sure they are not carrying the cost of Fraud within their insurance premiums."
