OREANDA-NEWS. October 01, 2010. Thanks to optimization of internal business processes, the insurance company ROSNO has managed to decrease the average time spent on direct settlement of losses to just 4 calendar days from the moment when a tortfeasor’s insurance company consents to damages, which is four times faster than market average, reported the press-centre of ROSNO.

Today, the law prescribes that OMTPL insured accidents shall be processed within 30 days after submission of documents by the aggrieved party — whether under the traditional system, or at the direct loss settlement terms. Indeed, the market average for payment of insurance compensations at the direct loss settlement terms is about 16 days from the moment when a tortfeasor’s insurance company accepts the damages.

ROSNO experts succeeded in significantly reducing the settlement time by using OPEX technologies (6 sigma) and implementing the operating report system for all levels of employees engaged in the direct settlement process.

"The promptness of insurance compensation payments is one of the key parameters considered by consumers. We have analyzed the potential that we had in terms of speeding up the OMTPL loss settlement process. Practice has shown that when insured accidents are processed at the direct loss settlement terms (in case if the aggrieved individual applies for compensation to his or her own insurance company), much time is spent on waiting for acceptance from the part of the tortfeasor’s insurer.

Monetary transfer between the banks takes about two days. Having been unable to modify the internal business processes of our counterparties, we focused on decreasing our own processing times and minimized the time needed to examine the documents within ROSNO. Indeed, the result that we have achieved is unprecedented for the Russian insurance industry. The market average for loss settlement is 24 calendar days (versus 8 days in ROSNO), and the same after acceptance by the tortfeasor’s insurance company is 16 days (versus 4 days in ROSNO), notes Mr. Andrey Afonasyev, Deputy Director of the Analysis, Monitoring, Methodology and Control Department of OJSC IC ROSNO, head of the Direct Loss Settlement system.