p.tserendejid head of insurance policy planning division, insurance department ulaanbaatar, 16 april...
TRANSCRIPT
Financial Regulatory Commission
Coordination, control and monitoring of insurance sector of Mongolia
P.Tserendejid
Head of Insurance Policy Planning Division,
Insurance Department
Ulaanbaatar, 16 April 2014
Contents
Present status of insurance sectorInsurance coordinationInsurance statistics
Future perspectives of insurance coordination
Control and monitoring of insurance
Insurance legal acts
Chapter 43 of the Civil law
Law on Insurance
Law on professional insurance activities
Law on insurance of drivers
Provisions of other laws
12
Driver’s responsibility insurance
Law 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.
652,716
413,692379,870
416600
0100,000200,000300,000400,000500,000600,000700,000
Бүртгэлтэй тээврийн
хэрэгслийн тоо /ЗТЯ/
Оношилгоонд орсон тээврийн хэрэгслийн тоо
/АТҮТ/
Татвар төлсөн тээврийн
хэрэгслийн тоо /ТЕГ/
Жолоочийн даатгалын гэрээний
тоо /АЖДХ-ны ЖДМС/
Нийт тээврийн хэрэгсэлTotal number of vehicles
Number of registered vehicles
Number of inspected vehicles
Number of vehicles paid the insurance
Number of drivers insurance contracts
Investment: 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%
Protect 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 deficit
Sector: Easy service for customers, speedy response
Other 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 activities
Accounting Standard regulations, insurance reports
License regulation to conclude insurance contract with foreign insurers.
Insurance statistics:Number of owners of special licenses and permissions on the
insurance market
№ 2009 2010 2011 2012 20131 Insurer 18 17 17 18 172 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 14
6 Actuary 10 12 13 18 15 Total 1711 2105 2104 2419 3253
Даатгалын салбарын тоо үзүүлэлтүүдCapital of the insurance companies
Billion tugriks
Insurance statistics
2009 2010 2011 2012 2013
23.40
31.80
47.50
79.00
93.90
Insurance fee income /billion tugriks/
2009 2010 2011 2012 2013
8.84
35.90
49.37
66.32
18.86
Insurance fee income growth / in %/
98.9
1.1
ердийн даатгал
урт хугацааны даатгал
General insurance
Long term insuranceLong term insurance
9.8
27.6
34.3
4.4
8.3 7.6
7.9
Гэнэтийн осол, эмчилгээний зардлын даатгал
Хөрөнгийн даатгал
Автын даатгал /хариуцлага орсон/
Барилга угсралтын даатгал
Агаарын хөлгийн даатгал
Хариуцлагын даатгал
Бусад
Accident, medical treatment insurance
Property insurance
Auto vehicle insurance /responsibility included/
Construction insurance
Responsibility insurance
Aircraft insurance
Others
37.0 10.1
5.6
47.3
2.1. Хугацаат амьдралын даатгал
2.3. Хуримтлалын даатгал
2.4 Тэтгэврийн даатгал
2.5. Эрүүл мэндийн даатгал
Life insurance
Accumulation insurance
Pension insurance
Health insurance
Insurance statistics
2009 2010 2011 2012 2013
5.50 6.80
10.00
16.90
26.50
2009 2010 2011 2012 2013
22.22 23.64
47.06
69.00
56.80
Insurance reimbursement growth / in %/
Loss reimbursement ratio
Accumulated profit /loss/
Million
Accumulated profit/loss -----linear, accumulated profit/loss
Percentage of fee income in the GDP
Insurance fee income per personIn tugriks
Insurance fee income per person in tugriks
Double insurance feesBillion tugriks
Future perspectives of insurance coordination
Deficiencies and challenges:
Lack of knowledge about the insurance sector among the public and insurants, low reputation
High 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 payment
Poor liaison between insurance tax coordination and policy
Perspectives of insurance coordination
Improve 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.
Perspectives of insurance coordination
Improve insurance service to public, create new products and services, support the insurance market
Improve obligatory insurance structure, increase services
Support long term and life insurance market
Establish double insurance national company
Make amendments to the relevant laws on tax issues of insurance organizations
Introduce company governance principle in insurance sector
Micro and available insurance
LAW ON CIVIL AVIATION
Provision 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 JUDGES
24.1. 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”.
Perspectives of insurance coordination
Improve insurance service to public, create new products and services, support the insurance market
Improve obligatory insurance structure, increase services
Support long term and life insurance market
Establish double insurance national company
Make amendments to the relevant laws on tax issues of insurance organizations
Introduce company governance principle in insurance sector
Micro and available insurance
Perspectives of insurance coordination
Improve insurance service to public, create new products and services, support the insurance market
Improve obligatory insurance structure, increase services
Support long term and life insurance market
Establish double insurance national company
Make amendments to the relevant laws on tax issues of insurance organizations
Introduce company governance principle in insurance sector
Micro and available insurance
Perspectives of insurance coordination
Improve insurance service to public, create new products and services, support the insurance market
Improve obligatory insurance structure, increase services
Support long term and life insurance market
Establish double insurance national company
Make amendments to the relevant laws on tax issues of insurance organizations
Introduce company governance principle in insurance sector
Micro and available insurance
Perspectives of insurance coordination
Insurance education and training
Improve professional skills of insurance personnel
Take systematic measures to enhance public education on insurance, increase insurance service level
ердийн урт хугацааны нийт0
200
400
600
800
1000
1200
1400
1600
1800
92.9 193.9
214.2236.3
450.5
477.7 627.3
1105 дэлхийнхөгжиж буйбодит
Developing
Perspectives of insurance coordination
Хөгжиж буй 1.3, 1.4, 2.7Ерөнхий 2.8, 3.7, 6.5
Global
General
General Long term Total
Insurance control and monitoring
On spot and remote control and monitoring
Acquire related data monthly and quarterly by remote control and monitoring
Payment ability criteria
Risk based control and monitoring
Improve actuary and underwriting skills