Human always wants to minimize the loss, whether he is starting a business or buying house, always try to avoid the consciences of uncertain factors. To reduce these types of uncertain factors insurance companies are playing their role. Insurance is a transfer of risk in which insurer party ensures compensation in case of loss or damage. The general insurance sector in Pakistan has witnessed growth from last year, the present growth is 10.77% and last year the growth was 6.12%. Adamjee insurance ranks 1st with the written premiums of 9.38 billion and market share of 27%. The 62% market share of the insurance company in the private sector is under 3 companies and remaining companies share the 38% of market share. The information of 62% market share of a private sector is mention below in graph 1
Adamjee insurance is the biggest player in the insurance sector. The Reason of having the highest market share is because their vision is to Explore, Innovate and Differentiate and passion is to provide leadership to insurance industry. Adamjee Insurance Company is one of the flourishing the insurance companies in Pakistan. The reason of the growth of adamjee insurance company is mention below.
Adamjee insurance company aims to deliver innovative customer solutions, having a wide-range of insurance services. It was founded by Sir Adamjee Haji Dawood and incorporated on September 28, 1960, and later got registered in Pakistan stock exchange. The company is working in Pakistan and UAE. A wide range of Shariah-compliant Takaful Products are o?ered through adamjee’s top-of-the-line Window Takaful Operations, serving customers from all walks of life on a much larger scale. The Company also deals in general insurance like engineering, fire ; property, health, marine, motor, travel, agriculture and miscellaneous insurance etc. With the passage of time company is moving towards a more innovative way to make a strong presence in the market. The departments which are operating in adamjee are HR, Administration, finance, IT, Technical department, salvage and claim, insurance of non-automobiles, insurance of automobiles, audit compliance of automobiles and audit compliance and claim non-automobiles.
Adamjee’s one of the department deals in audit compliance and claims of non-auto. Adamjee’s compliance and claim department deals into two things. Firstly, its main job is to check the operation of the branch and divisions whether they are working right or not regarding underwriting and SOPs. Secondly, to assure insurance claims settlements are as per manual and guidance. On top of that, if there are any discrepancies, its job is to provide recommendations regarding how branches and division can improve. Adamjee audit compliance and claim department have two major stakeholders that is customer, company and regulatory authorities. Audit compliances and claim department assure the government that adamjee insurance company is following the rules and regulation of underwriting according to insurance ordinance 2000. This department is working as a bridge between customer and government, where company conducts an audit and as the same time, they are reporting government.
To satisfy the customers of adamjee, audit compliance and claim department assures underwriting is done according to SOPs and manual. If they have to pay any claim, a company has to assure whether the event happened according to a written agreement. To make sure every activity which is performed by the compliance department satisfies our customer, so they make customize strategies. The Company focuses whether the policies which are provided to the customer fulfill the demand. To make the best strategy, the company continuously examines the policies and makes different changes if it is required. The Company’s aim is to provide best possible services. The Company is working hard to make efficient and reliable policies and procedures which can ultimately satisfy our stakeholders. As the vision also defines that company’s will to explore and innovate. Audit compliance and claim department internal customers are Branches and Divisions of Adamjee Insurance Company. The task which they perform; issuing documents of insurance like, cover note, policy, endorsement etc. and settling the claims from intimation of loss to final payment to the insured.
Adamjee is focusing on providing best services to their stakeholder. The role of audit compliance and claim Department is an implementer. The department is influenced by top management for the strategies.
Engineering insurance, Fire and Property insurance, Health insurance, Marine insurance, Travel insurance, Agricultural insurance, miscellaneous insurance, financial line insurance, Liability line insurance, And Personal Accident Insurance.
Adamjee Compliance and claim department task is to make check and balance on internal client which are branches and division of adamjee insurance. Their main duty is to check all underwriting of insurance whether it is according to SOPs and regulatory agreements. Department have to conduct quarterly audit to check processes of underwriting which they have sell to external customer, because they have highest market share in private insurance sector with 27%. Compliance and claim department have to conduct quarterly audit of branches in order to sustain in market for services which company is selling to external customer.
It is discussed above in paragraphs. Adamjee compliance and claim department always try to provide a flexible solution in order to create good customer value. As we know that general insurances are different in nature, so it needs different solutions and treatment. Compliance and claim audit always examine every single aspect of underwriting; their duty is to protect investment of external customers. They do not focus on cost, because company’s 1st priority is to provide best services. To provide best and flexible solution and services their team of compliance and claim department comes with innovative solution because every case of underwriting is different from each other. To achieve the goal of providing best services, department schedule audit quarterly for branches and division.
Adamjee compliance and claim department provide the solution to an external customer regarding underwritings, but at the same time they are trying to reduce the errors by fast the procedure of audit compliance and claim by conducting audit quarterly. Quarterly audit of branches helps adamjee to manage data and minimize mistake. Department also try to speed up the time to pay claim within three months. If underwriting or claim are not performed according to SOPs and manual, department tries to correct that mistake as soon as possible. Audit purpose is to avoid mistake with in branches, because at the end insurance company have to inform regulatory authorities about underwriting whether it is according agreement and SOPs of the company.
In order to deliver services to internal customers the transformation process of compliance and claim audit is explain below:
It is clear that all operations have some kind of “input” which is later “process” and in return we get “output” which is known as services or product. Adamjee insurance company audit compliance and claim department inform relevant branch where the audit has to be conducted as per schedule, for extracting the last three month data which will further audit by adamjee compliance and claim department. After extracting the data auditor examines each document whether the policies are sold according to company’s manual or not. Examination of all document audit issues report to branch. Adamjee compliance and claim department issued Report explain observations whether policies and claim are as per manual. implementation explains that if company have to pay claim to anyone, that claim payments is covered under the policy of insurance company and lastly, if department feel that records are maintain poorly, so they give recommendations to that branch. Visibility of transformation process is high, because company has internal customers which are branches and divisions of their own company. The process is highly visible by audit compliance and claim department to their internal customers.
Below we can clearly understand that compliance department has supply chain network. The first tier of supplier are rate making, underwriting and claim settlement which later process into audit od document Adamjee 1st tier customers are branches and division and the second tier customer is the insured person.
Adamjee insurance didn’t follow any method for location. Company is located on M.M Alam road opposite park lane hotel Lahore. The reason behind selecting this place was that area is mostly covered by insurance companies and this is considered the hub of maximum corporate dealing.