Coordination control and monitoring of insurance sector of Mongolia PTserendejid Head of Insurance Policy Planning Division Insurance Department Ulaanbaatar 16 April 2014 Contents ID: 780885
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Financial Regulatory Commission Coordination, control and monitoring of insurance sector of Mongolia
P.TserendejidHead of Insurance Policy Planning Division, Insurance DepartmentUlaanbaatar, 16 April 2014
Slide2ContentsPresent status of insurance sectorInsurance coordinationInsurance statisticsFuture perspectives of insurance coordinationControl and monitoring of insurance
Slide3Insurance legal actsChapter 43 of the Civil lawLaw on Insurance
Law on professional insurance activities
Law on insurance of drivers
Provisions of other laws
12
Slide4Driver’s responsibility insuranceLaw on insurance of drivers was endorsed by the Parliament on 6 October 2011. In the reported year total of 16,2 billion tugriks of insurance fees were collected and 10,6 billions paid on reimbursement. Total number of vehiclesNumber of registered vehicles
Number of inspected vehiclesNumber of vehicles paid the insuranceNumber of drivers insurance contracts
Slide5Investment: sharesThe provision 27.1.1 of the Law on insurance prohibiting the insurer to “purchase and sell shares” was abolished. This allowed the insurance company to purchase percentage of A stand of Mongolian Stock Exchange:10%5% 10%
Slide6Protect lawful rights and interests of insurants Improve the product of insurance-the coordination of contracts: Registration at the committee, contract requirements, reimbursement of insurance fees, group insurance, insurance warranty Reimbursement of insurance: termination conditions, duration, payment stages, beneficiary, insurant, owner of the insurance contract, reimbursement deficitSector: Easy service for customers, speedy response
Slide7Other coordination issuesRegulation on insurance company’s payment capability criteriaConditions, requirements for opening representative’s offices or branches of foreign insurers in Mongolia, their professional insurance involvement and activitiesAccounting Standard regulations, insurance reports License regulation to conclude insurance contract with foreign insurers.
Slide8Insurance statistics:Number of owners of special licenses and permissions on the insurance market № 20092010
2011201220131Insurer
18
17
17
18
17
2
Insurance company branches
129
138
138
188
251
3
Insurance representatives
1676
2061
2057
2357
3187
4
Insurance mediators
5
9
8
17
20
5
Insurance loss
adjustor
2
6
9
9
1
4
6
Actuary
10
12
13
18
15
Total
1711
2105
2104
2419
325
3
Slide9Даатгалын салбарын тоо үзүүлэлтүүдCapital of the insurance companiesBillion tugriks
Slide10Insurance statistics
Slide11Slide12Aircraft insuranceOthers
Slide13Life insuranceAccumulation insurancePension insuranceHealth insurance
Slide14Insurance statistics
Slide15Loss reimbursement ratio
Slide16Accumulated profit /loss/Million Accumulated profit/loss -----linear, accumulated profit/loss
Slide17Percentage of fee income in the GDP
Slide18Insurance fee income per personIn tugriksInsurance fee income per person in tugriks
Slide19Double insurance feesBillion tugriks
Slide20Future perspectives of insurance coordinationDeficiencies and challenges:Lack of knowledge about the insurance sector among the public and insurants, low reputationHigh outflow of insurance fees Shortage of professional insurance personnel Low capacity of insurance entities to overcome challenges and risks, lack of system to immediately compensate the losses of insurants due to insurance company’s inability of paymentPoor liaison between insurance tax coordination and policy
Slide21Perspectives of insurance coordinationImprove the system to protect the rights and interests of insurants Improve performance, enhance control and monitoring. Introduce and implement international insurance standards. Create risk protection and early warning system of the insurance market. Improve insurance dispute solving mechanism. In case of insurer’s bankruptcy immediately compensate insurant’s losses.
Slide22Perspectives of insurance coordinationImprove insurance service to public, create new products and services, support the insurance marketImprove obligatory insurance structure, increase servicesSupport long term and life insurance marketEstablish double insurance national company Make amendments to the relevant laws on tax issues of insurance organizationsIntroduce company governance principle in insurance sectorMicro and available insurance
Slide23LAW ON CIVIL AVIATIONProvision 36. Passenger’s insurance LAW ON NOTARIAL SERVICES Provision 22. Notary responsibility insurance ANTI-CORRUPTION LAW Provision 30.LAW ON CONTROL OF EXPLOSIVES AND EXPLOSIVE EQUIPMENT Provision 19. Insurance
19.1.Any legal party using explosives and explosive equipment shall make insurance of activity risks, citizens life and health. LAW ON LEGAL STATUS OF JUDGES24.1. Life and health insurance fees of judges will be paid from state budget. Law on insurance, provision
6.4
.
“
Detailed coordination of formal insurance risks and conditions can be described as obligatory insurance coordination determined by relevant law
”
was amended as
“
The Financial coordination committee can endorse the regulation on detailed coordination of formal insurance risks and conditions in consultation with the relevant state central administration in charge of insurance
”
.
Slide24Perspectives of insurance coordinationImprove insurance service to public, create new products and services, support the insurance marketImprove obligatory insurance structure, increase servicesSupport long term and life insurance marketEstablish double insurance national company Make amendments to the relevant laws on tax issues of insurance organizationsIntroduce company governance principle in insurance sectorMicro and available insurance
Slide25Perspectives of insurance coordination Improve insurance service to public, create new products and services, support the insurance marketImprove obligatory insurance structure, increase servicesSupport long term and life insurance marketEstablish double insurance national company Make amendments to the relevant laws on tax issues of insurance organizationsIntroduce company governance principle in insurance sectorMicro and available insurance
Slide26Perspectives of insurance coordination Improve insurance service to public, create new products and services, support the insurance marketImprove obligatory insurance structure, increase servicesSupport long term and life insurance marketEstablish double insurance national company Make amendments to the relevant laws on tax issues of insurance organizationsIntroduce company governance principle in insurance sectorMicro and available insurance
Slide27Perspectives of insurance coordination Insurance education and trainingImprove professional skills of insurance personnel Take systematic measures to enhance public education on insurance, increase insurance service level
Slide28Perspectives of insurance coordination Хөгжиж буй 1.3, 1.4, 2.7Ерөнхий 2.8, 3.7, 6.5GlobalGeneralGeneral Long term Total
Slide29Insurance control and monitoringOn spot and remote control and monitoring Acquire related data monthly and quarterly by remote control and monitoring Payment ability criteriaRisk based control and monitoring Improve actuary and underwriting skills