Eighteen delegates of the former Soviet Union representing the insurance industry expressed concerns about obtaining buyers' trust, managing risk to lower costs and combating fraud at a recent risk management seminar.
The session–offered by the Risk and Insurance Management Society Inc.–was part of a three-week curriculum in the Special American Business Internship Training program. The program was designed to train mid- to senior-level executives of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, according to RIMS.
The delegates, including representatives of legislative bodies and private insurance company executives, told National Underwriter their insurance and risk management programs are in many ways similar to those in the U.S. A big difference, however, is a lack of infrastructure, making them vulnerable to fraud.
Galym Amerkhodjayev, chairman of Oil Insurance Company, JSC in Kazakhstan, said one thing the U.S. has is "huge databases." In Kazakhstan, he said, "we do not have universal databases. Each company collects its own data."
The lack of a universal database, he said, is "an impediment for risk managers, underwriters and actuaries. We have undertaken steps to establish databases."
He said his country's main goals are to standardize data and cut down on fraud. "We can see that fraud is going up and becoming more sophisticated," he said. "We need sophisticated databases to fight it."
He added that in the U.S. every state has a fraud bureau, which doesn't exist in his country. This means that fighting fraud is left to the insurance companies.
Another big challenge to the insurance industry in countries of the former Soviet Union, Mr. Amerkhodjayev said, is the lack of trust from the public. "Inflation led to drastic changes in the financial situation, and companies lost credibility," he noted.
Seyit Kanimetov, head of insurance and reinsurance with Kygyzlnstrakh Insurance Company LLC in Kyrgyzstan, said his company's reinsurer plays a big role in helping with risk management issues. Reinsurers, he said, help to establish and set standards with corporate clients.
He added that the general mistrust of the public toward insurers is changing as more people wish to obtain coverage.
A lack of broad databases make fraud-fighting difficult, insurers contend.
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