foreign insurance perspectives on the ukrainian market anthony pearce honorary director general
TRANSCRIPT
Foreign insurance perspectives on the
Ukrainian market
Anthony PearceHonorary Director General
Agenda
1. Road safety prospects and positioning of insurance companies as socially responsible.
2. Global insurance leaders and their experience in road safety improvement.
3. Priorities for Ukrainian insurance in global market.
Road safety in EU
• EU with 496 million population has 41,600 deaths and 1.8 million injuries.
• This is the equivalent of a Boeing 737 jet aircraft crashing every day.
Main problems• Speed
• Alcohol
• Seat belts• European Road Safety Charter aims to halve
number of deaths by 2010.• Sweden and UK lowest accident rates … …because drivers obey the rules.
Proper enforcement• If European traffic rules were
thoroughly enforced >14 000 lives saved and > 680 000 injuries avoided.
• EU target to halve road deaths 2004-2010.
• What is the role of insurance companies in reaching this goal?
Road safety in Ukraine• Road deaths in Ukraine 7600 (2008) = 162 / million (EU average = 90 / million)
Compensation
• In most countries victims claims can be reduced if they are found to have contributed to the collision.
• State insurance systems usually cover victims of hit-and-run through a levy on all vehicle insurances.
• Victims dissatisfied with damages and justice.
What can insurers do to improve road safety
• In many countries insurers offer no-claims bonus schemes. But little evidence that no-claims bonus encourages better driving – just fewer claims.
• However, insurers can improve road safety, through: a. shaping road safety policy; b. financing road safety interventions; c. providing better information on road crashes; d. promoting better paramedical care for victims; and e. promoting more research on road safety.
Shaping road safety policy
• National Road Safety Councils include representatives of insurance industry.
• In countries with state-owned road accident compensation funds, insurer is a powerful voice in policy making.
• Insurers can also reinforce policies by their actions.
Finance for road safety
• Some countries help to finance road safety interventions by adding a levy to premiums.
• Some state-owned insurers, who often enjoy monopoly power, actively invest in road safety.
• Only the large, state-owned funds tend to evaluate the impact of their road safety interventions.
Finance for road safety• In British Columbia, ICBC invests:
– 80% of available funds in engineering and enforcement - 4.7:1 return on interventions.
– 20% is spent on publicity and education programmes to support engineering and enforcement
• Numerous other examples of one-off and ongoing sponsorship of road safety.
• Sponsorship is not a reliable source of finance.
Information on crashes• In Ukraine data is collected on crashes and
black spots identified.
Need for better information
• Insurance companies keep road crash data eg. records on crashes not reported to police.– In Indonesia, the number of road deaths reported
to insurers was 50% higher than that reported to the police.
• Insurance records can also provide useful additional information on the costs of road crashes.
Promoting road safety research
• Numerous national and international insurance industry associations finance research on road safety.
• Some focus on research that drives down the costs of vehicle repair. Others produce policy statements, design guides, position papers etc.
Emerging good practice
• There is little evidence that 'no claims bonuses' improve road safety.
• Cost-recovery by public bodies can have an impact on premiums and encourage insurance companies to take road safety issues more seriously.
• Timely compensation payments important.
Priorities for Ukrainian insurance in global market
• Insurers must understand the value of human life.
• Priorities: – 1st health damage compensation – 2nd property compensation.
• Thanks to road safety provisions insurers offer a wide range of services and compensation road crash victims.
