The Philippine Insurers and Reinsurers Association (PIRA) is urging all non-life insurance companies in the country to make use of the new Motor Claims Information System (MCIS) to address the growing problem of insurance fraud.
PIRA released this week an infographic that gives five compelling reasons why insurance companies should support the new MCIS.
These five reasons are:
Insurance fraud is on the rise. Insurance companies cannot solve insurance fraud alone.PIRA protects all data submitted to the MCIS.More users will make the MCIS work better, andThe data submitted to the MCIS will help PIRA develop better rates for motor car insurance.
The idea of creating the MCIS was born in 1996 to detect multiple claims on carnap and total loss vehicles and address cases of duplicate claims, meaning the same car making similar claims from two or more insurance companies. The first version of the system was purely manual in nature, with companies submitting via fax. The system evolved into a second version in 2005 that made use of the Internet.
Now on its third version, the MCIS is purely cloud-based and accepts data submission 24/7.
It accepts data related to all kinds of motor car claims which can be uploaded either one-by-one or by batch. And it matches these data and tells the concerned PIRA members if there are duplication in claims, carnap and total loss cases on record. It will be beneficial in analysis and proper pricing of motor business using aggregated data submitted by participating members.
PIRA Executive Director Michael Rellosa said almost half of PIRA's 60 member companies have already expressed support to the new MCIS. He said the system is continuously being improved to match the needs of PIRA members.