The General Insurance Association implemented a new framework to handle motor accidents from 1 July 2008. During the past two months, a total of 33,100 accidents were reported, representing an increase of 35% over the same period last year.
Derek Teo, President of GIA, claimed that the new framework is a success. I wonder how the insurance companies are able to bring down the claim cost, when the number of insurance claims has increased.
I remembered that the framework included roadside assessment by the assessors sent by the insurance company. I wonder if this new measure has been implemented, as it is a major strategy in the new framework to avoid inflated claims.
the new measure just brings forward the claims reporting...
ReplyDeletemuch more work is needed to control the claims cost (which is the primary reason why the loss ratios of the motor industry on the whole increased by 40%/50%)..
why did the average claim cost incr so significantly in 2007?
a) parts price increase (due to boom of oil, shipping costs, iron ore)?
b) wage increase?
c) property rental increase?
d) a ceo (who fights unscrupulous practices of workshops) left the motor industry?
e) more new cars which cost more to repair?
the gia should conduct a study...
lastly, is it possible to check the profits and expenses of large workshops/dealers?