Risk factors recognition of recoveries in the electronic indemnity service

The purpose of this research was to discover the reasons and consequences of recoveries in the electronic indemnity service. Changing operations of the claims settler were the approach to the subject and that was the reason why it is important to receive more information about recoveries. The case company of research was Tapiola Mutual Life Assurance Company and its purpose was to produce suggestions to improve the risk management of recoveries.

Quantitative research methods were used to examine 102 recoveries from 1 August 2008 to 17 October 2008. Material was obtained via different computer programs. Recoveries were chosen to the sample using random sampling. The reasons for recoveries were divided into different categories which were investigated probability and consequences of biases.

The main research method used in this study is the cross table which shows the correlation between the reasons and price of recoveries. In addition the cross table describes the correlation between the client’s insurance history and price. Correlation was also used in this research to describe the probability and consequences of the risks.

The results of the research are that the first electronic claims for indemnity contain more probable biases than other electronic claims for indemnity. Biases in the second and third claims did not appear so much. In addition the concepts nutritive preparations and implements were not clear to the clients and it is necessary to elaborate them slightly. Deducting risks were proposed to improve communication on the company’s home page because it is possible to deduct the number of recoveries enhancing risk management.