Cooperativismo y Desarrollo (Dec 2022)
Procedure for the administration of technical provisions pending liquidation and of risks in progress
Abstract
In order to face the risks derived from their activity, insurance entities must have sufficient financial resources to cover outstanding obligations with their clients. The succession and impact of insurance risks in the period 2015-2017 and the high accumulation of claims in short periods of time led to the identification of efficiency reserves in the administration of insurance technical provisions in the Unidad Empresarial de Base Seguros Pinar del Río of the National Insurance Enterprise. The objective is to propose the modification of the administration procedure of the technical provisions of risks in course and provisions pending liquidation. For this purpose, a diagnosis was carried out in the Pinar del Río Base Business Unit during that period, demonstrating that the procedure presented weaknesses in its creation percentages, and unnecessarily immobilized financial resources, which affected the performance and economic efficiency in the short and medium term, these limitations being manifested mainly in times of strong impacts of climatological events and the combination of several risks in agricultural insurance. As a result, an improved procedure was proposed and validated for the 2018-2020 period, achieving superior results in this unit. In addition, a procedure was designed and implemented for electronic indemnities to producers and productive structures in the agricultural sector, improving efficiency and effectiveness in its management: the opening of financial investments derived from the use of temporarily free funds.
