1. Reasons, Objectives and Realm of Standardization STANDARDIZATION IN SOCIAL INSURANCE: Reasons, Objectives and Realm – A Conceptual Approach - by: Jean-Victor Gruat, September 2010 1

2. Reasons, Objectives and Realm of Standardization Definition STANDARDIZATION IS the process of defining and applying the conditions necessary to ensure that a given range of requirements can normally be met, with a minimum of variety, in a reproducible and economic manner based on the best current techniques. Standardization is NOT unification. It is linked with modernization, and efficiency. 2

3. Reasons, Objectives and Realm of Standardization CONTENTS: Reasons for standardization in social insurance Objectives of standardization The realm of standardization Subjects and vehicles of social insurance sdandardization 3

4. Reasons, Objectives and Realm of Standardization REASONS FOR STANDARDIZATION Respond to demand, face competition  Economic reasons (cost-effectiveness)  Efficiency reasons (compatibility among schemes, among administrations)  Monitoring preoccupations (establish benchmarks) 4

5. Reasons, Objectives and Realm of Standardization OBJECTIVES OF STANDARDIZATION Confirm institutional relevance, guarantee sustainability  Productivity gains (computerization)  Accuracy in actions taken (decrease rate of errors and mistakes)  Improve levels of clients’ satisfaction (speed up process, anticipate on criticism) 5

6. Reasons, Objectives and Realm of Standardization THE REALM OF STANDARDIZATION Social insurance in a changing world and a global environment VERTICAL STANDARDIZATION  Inside the institution  Beyond the institution HORIZONTAL STANDARDIZATION  Across the social sector  With other Government circles 6

7. Social insurance standardization VERTICAL STANDARDIZATION HORIZONTAL STANDARDIZATION 7

8. Reasons, Objectives and Realm of Standardization SUBJECTS AND VEHICLES OF STANDARDIZATION IDENTIFICATION WORKERS QUALIFYING CONDITIONS EMPLOYERS CONTINGENCIES COVERED BENEFICIARIES ENTITLEMENTS SERVICE RENDERED BENCHMARKING HUMAN RESOURCES UTILITIES FINANCING CERTIFICATION WHOM FOR WHAT HOW 8

9. Reasons, Objectives and Realm of Standardization THE “WHOM” IN STANDARDIZATION PROCESS  IDENTIFICATION Establish unique standard for registration – one person/entity, one number; one number, one person/entity  QUALIFYING CONDITIONS Unifiy qualifying conditions for accessing benefits – make them compatible among benefits – ensure continuity in protection  CONTINGENCIES COVERED Specify which category is compulsorily covered against which risk – define scope of voluntary/extended coverage 9

10. Reasons, Objectives and Realm of Standardization THE “FOR WHAT” OF STANDARDIZATION  ENTITLEMENTS Define the contents of protection attached to each social risk, including by-products or fringe benefits (e.g. medical coverage when unemployed, old age credits when disabled, etc.)  SERVICE RENDERED Establish the services to which employers, workers and beneficiaries are entitled (e.g. periodic information, access to their account, access to front desk, special treatment with medical facilities, emergency care outside their constituency, etc.)  BENCHMARKING Specify the benchmarks which have to be attained in terms of service efficiency, e.g. time for processing benefits, time for answering letter, percentage of complaints received compared to number of insured persons, categories of statistics collected, processed and analyzed, etc. 10

11. Reasons, Objectives and Realm of Standardization THE “HOW” IN STANDARDIZATION  HUMAN RESSOURCES Specify the required background for staff, their grade, the typical contents of job description, career development prospects, training opportunities, disciplinary processes, transferability, core working conditions, etc.  UTILITIES Establish the typical list of required equipment (hardware and software), interior design, accessibility requirements  FINANCING Document the financial obligations common to all schemes, such as rates of contributions, basis for computing contributions and benefits, penalties, time-barring, resources to earmark for management fees, investment policies, crediting of individual accounts, etc.  CERTIFICATION Provide typical list of documentary evidence to certify the situation of insured persons/beneficiaries, e.g. possible substitutes to I.D. card, bank certificate, proof of residence, birth certificate, employment records, medical certificates, hospital and other bills … 11

12. Reasons, Objectives and Realm of Standardization STANDARDIZATION AS A PROCESS Prerequisites are a reasonable level of previous unification and administrative interaction, access to modern computer technology to ensure equal footing, vertical management as institutional guarantee for standardization Standardization is a compound of management standards, technical standards (premises, hardware, environment) and work standards (duties, job descriptions at different levels) – the last two requiring close collaboration with outside institutions where relevant standards were previously developed Stages for implementation include concept and design phase, planning phase, testing/piloting, implementation and self plus social assessment. The whole process takes a long time, typically 10 years, has to be conducted mostly internally to ensure proper acceptance and smooth transition from existing to standardized system, requires regular monitoring, updating and adaptation. 12