GREEN CARD BUREAUX ANDCORRESPONDENTS within the Green Card System Tjaša Korbar Tjaša Korbar Slovenian Insurance Association Slovenian Insurance Association

☺ ☺ ☺ ☺ ☺ ☺ ☺ ☺☺☺☺ ☺☺ ☺☺☺ ☺☺☺☺ GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October Happy 20th Happy 20th Anniversary ! Anniversary !

GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October NATIONAL BUREAU and CORRESPONDENTS Brainstorming Brainstorming On different levels − CoB and national markets

GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October NATIONAL BUREAU and CORRESPONDENTS Relationship? Description with key words: Knowledge − Cooperation − Guidance − Finance – Control Ways, methods and levels of co-operation depend on Ways, methods and levels of co-operation depend on: - Size of a market/country, number of members, agents, correspondents, - Experience, tradition within the GC System, Council of Bureaux, - National specialities (legal, organisational − GCB, GF, IC, CB, Association).

GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October NATIONAL BUREAU National Bureau − central organisation being on: INTERNATIONAL level: INTERNATIONAL level: a link between national MTPL markets and Council of Bureaux and vice versa, a guarantor for obligations of its members in other GC countries, NATIONAL level: NATIONAL level: centre in respect of international claims/cross border accidents in the GC country, guarantor (to claimants) for obligations of foreign national bureaux and its members, Both levels: Both levels: a hub of knowledge on MTPL legislation, insurance and compensation law and claim settlement of cross border accidents, and so responsible for: - effective implementation, performance of national/international legislation, - competence and effectiveness in claims handling procedures, - competence and effectiveness in claims handling procedures, - creation and promotion of best business practice and related supervision, - creation and promotion of best business practice and related supervision, - active participation in creation of the related national/EU legislation, international agreements. - active participation in creation of the related national/EU legislation, international agreements.

GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October The role of National Bureau (NB) towards claimants The role of National Bureau (NB) towards claimants (as the final guarantor representing members, agents, correspondents in respect of international claims): raising public awareness and education/training of potential claimants how to react in respect of accidents involving foreign motorists and who to contact (web site info, telephone and contacts, press conferences) assistance, information to claimants where, how to file international claims, dealing with complaints of claimants against unprofessional conduct of correspondents, agents.

GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October The role of NB towards national authorities The role of National Bureau (NB) towards national authorities (as the central organisation representing members, agents, correspondents in respect of international claims): - information on changes in GC system, control of MTPL insurance of motor vehicles from abroad, co-operation and data exchange as regards police reports and other − Ministry of Interior, - co-operation and data exchange as regards registered motor vehicles − Ministry for Transport, - co-operation on effective implementation and performance of actual legislation concerning international claims and preparation of new insurance legislation − Ministry of Finance, Ministry of Interior, Ministry for Transport, Supervisory Agency.

GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October CORRESPONDENTS What is the role and importance of correspondents? (insurers − loss adjusters − others) Settled approx. 62 % of all 365,251 GC claims (2013 CoB GC claims statistics) Quality of services provided by correspondents − NB’s responsibility that the claims are handled correctly. NB’s responsibility that the claims are handled correctly. Financial capacity of correspondents Financial capacity of correspondents − NB’s responsibility that the victims are compensated in time (sufficient financial strength to make advance payment to victims ).

GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October Guidance, Cooperation and Control Ways and methods of guidance and co-operation − National Bureau (NB) towards members, agents, correspondents (proactive, dynamic approach of NB): Monitoring and supervision of members, agents, correspondent and its functioning: - - observing and keeping of professional principles, - (non)systematic control of files handled by members, agents, correspondents (especially court cases), - assistance, consultancy, enhanced communication especially in case of problems, complaints, Information on changes, developments in GC system and other: - circulars, newsletters, web site info, Contacts and meetings with members, agents, correspondents: - discussion on common problems, novelties within the GC system, - and if necessary creation of common solutions through guidelines, recommendations, Dealing with complaints of claimants on unprofessional conduct and possible measures Training, education of insurance workers dealing with international claims: - organization of seminars, workshops, working visits etc. “Open door” of NB any time to discuss particular problems with member(s), agent(s), correspondent(s),

GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October NATIONAL BUREAU and CORRESPONDENTS Relationship between NB on one side and correspondents on the other side is based on d Relationship between NB on one side and correspondents on the other side is based on d ifferent platforms:  legal  control  cooperation and  providing/exchange of information regarding the GC system  educational, which have their dynamic international and national dimension.

GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October Where are we today? International level − Council of Bureaux: Internal Regulations, and Correspondents’ Charter (2009), Handling and Payment Model Agreement, Recommendations for Conditions for Outsourcing Claims Handling by Correspondents On line Guarantee Call System Annual meetings of CoB with International Claims Handling Agencies Circulars, web site info, etc. CoB Academy (CoBAc) − Basic, Advanced

GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October Where are we today? National level − National GC Bureaux: National Legislation, and different Internal Rules of National Bureau (Constitution, statutes, regulations, contracts, code of practice etc.) Supervision, auditing, control of correspondents, files (systematic, regular or irregular − especially where a complaint/law suit is filed by the claimant) Working Bodies within the NB (participation of members − insurers) / Meetings between NB and correspondents Circulars, web site info, etc. National, international seminars, conferences, workshops organised by NBs and also by insurers/agencies

GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October Where do we want to go? Do today (all) National Bureaux prudently: -perform their responsibilities provided by the law, and -manage different risks in respect of claims handling of international GC claims especially when the claims are handled by correspondents?

GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October Actual situation? Satisfactory? National Bureau (NB) – members, agents and correspondents? Is a NB considered as a central organisation with its role of guidance in respect of GC system/claims in a country? Is it recognised as such by members, correspondents, agents and also by authorities and claimants? Do members, correspondents, agents want to co-operate with the NB and to what extent/level? Are they obliged to co-operate? Is it up to them to decide about it or regulated? What /Where are the limits on the side of NB and what on the other side? How could a NB motivate member(s), correspondent(s) and agents to actively co-operate, transfer and exchange information? Is there a legal framework necessary?

GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October Actual situation? Satisfactory? National Bureau (NB) – members, agents and correspondents? What kind of legal framework/basis for guidance, co-operation, control, financing do we need? How is the guidance, co-operation, control, financing different when the NB co-operates with its member(s) and agent(s), correspondent(s), which are claims handling agencies? Measures, sanctions of NB against defaulting members, correspondents, agents? Are they different against member(s) and agent(s), correspondent(s) being claims handling agency?

GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October Where do we want to go? What areas could/should be changed/ improved / introduced in relations: NBs and correspondents? Changes to legal platform? Control? Cooperation? Information? Education? ? Is it necessary to increase the scope of common, binding rules, conditions, restrictions within the Council of Bureaux to enhance and safeguard the financial stability of the Bureaux/GC system and the quality of the services in GC claims handling? (liberalised market, free competition!)

GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October We all must build in a little stone in the mosaic of cross border claim handling!