In a move aimed at strengthening its risk management processes and curbing the increasingly high rate of insurance related frauds such as false claims for damages, fraudulent Injury Claims and so on, a leading Insurance Company – MGen Insurance Company recently partnered with Dun & Bradstreet Credit Bureau to develop detailed reports on the insurance history of applicants in addition to providing access to the credit history of such applicants in instances where prospective insurance customers have applied for an insurance product or service or where there are questions about a clients claims history from other insurers.
The move considered by Industry observers as timely and relevant, is amongst other things expected to ensure the insurance company is able to reduce their vulnerability to high-risk individuals or companies. In addition, ?it offers prospective customers of the insurance company the assurance fair and objective assessments.
Speaking on their recent engagement with Dun & Bradstreet, Mr. Charles Sumbwe the Managing Director of MGen Insurance Company said, ‘We are delighted that Dun & Bradstreet Credit Bureau has come forward with an innovation which will in no small way, ensure that we are able to assess and measure the risks associated with insuring our customers. The partnership will enable us to make fair judgements of customers which will lead us to make objective decisions and that will ultimately ensure service levels are enhanced as a result of weeding out those that create undeserving pressure by non-payment of premiums or by stage managing claims.”
The General Manager, Dun and Bradstreet said, “We appreciate the Management of MGen Insurance company for giving us the opportunity to be a part of their risk assessment and management process. We are confident that they will in very little time, witness a positive transformation in the behaviour of their customers as more individuals and businesses covered by insurance companies make adjustment to ensure that their profiles stay clean and that premiums are paid as agreed with the insurance companies. It is our anticipation that other insurance companies will join hands with us to build a truly respectable credit and claims reporting eco-system for Tanzania where every stakeholder gets the value they deserve.”
The use of credit bureaus such as Dun & Bradstreet, will in the long term ensure that the insured enjoy more affordable insurance because pricing depends on loss experience over time, a match between risks and rates and the availability and affordability of insurance products and services. Studies of insurance companies in other climes have shown that consumers with better credit and insurance history as shown in their reports, generally have fewer losses and file less expensive claims. People who use credit wisely are generally responsible in other areas of their lives. It is time Tanzania’s insurance sector witnesses such trend as it offers good benefits to both the insured and the insurer.