GREEN CARD BUREAUX AND CORRESPONDENTS within the Green Card System Tjaša Korbar

1. GREEN CARD BUREAUX AND CORRESPONDENTS within the Green Card System Tjaša Korbar Slovenian Insurance Association

2. ☺ ☺ ☺ ☺ ☺ ☺ ☺ ☺☺☺☺ ☺☺ ☺☺☺ ☺☺☺☺ Happy 20th Anniversary ! GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October 2014

3. NATIONAL BUREAU and CORRESPONDENTS Brainstorming On different levels − CoB and national markets GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October 2014

4. NATIONAL BUREAU andCORRESPONDENTS Relationship? Description with key words: Knowledge − Cooperation − Guidance − Finance– Control 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 2014

5. NATIONAL BUREAU National Bureau − central organisation being on: 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, NATIONALlevel: • centre in respect of international claims/cross border accidents in the GC country, • guarantor (to claimants) for obligations of foreign national bureauxand its members, 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, - creationand promotion of best business practice and related supervision, - 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 2014

6. The role of National Bureau (NB) towards claimants The role of National Bureau (NB) towards claimants (as thefinal 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 e-mail 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 2014

7. 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 2014

8. 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. 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 2014

9. Guidance, Cooperation and Control Ways and methods of guidance and co-operation −National Bureau (NB) towards members, agents, correspondents(proactive, dynamicapproach 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 systemand 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 withcomplaints of claimants on unprofessional conductand possible measures • Training, educationof 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 2014

10. NATIONAL BUREAU andCORRESPONDENTS Relationship between NB on one side and correspondentson the other sideis based ondifferent platforms:  legal  control cooperation and  providing/exchange of informationregarding 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 2014

11. 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 2014

12. 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, controlof 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 NBsand also by insurers/agencies GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October 2014

13. 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 2014

14. Actual situation? Satisfactory? National Bureau (NB) –members, agentsandcorrespondents? • Is a NB considered as a central organisationwith 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 2014

15. Actual situation? Satisfactory? National Bureau (NB) –members, agentsandcorrespondents? • 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 2014

16. 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 servicesin GC claims handling? (liberalised market, free competition!) GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October 2014

17. We all must build in a little stone in the mosaicofcross border claim handling! GCBs and correspondents within the Green Card System - 20th Anniversary of the MK Bureau, October 2014