SOFIA, Bulgaria, Sept. 14, 2011 /PRNewswire/ -- IBM (NYSE: IBM) has been selected by the Insurance Guarantee Fund to help develop a sophisticated information system giving motor insurance providers the opportunity to check and verify online all necessary information regarding Motor Third Party Liability (MTPL) insurance in Bulgaria.
The new system, based on IBM software, hardware, services and business analytics technologies will enable local and international motor insurance agencies to improve the efficiency of motor insurance processes. The automated system will lead to more accurate and rapid decision making, reducing costs, improving customer service and reducing the number of fraudulent claims. Responsible drivers will be rewarded with lower insurance premiums thanks to the integration of various pools of information including police archives. IBM worked with local business partner Musala Soft to develop the system.
"The new solution will enable the Bulgarian motor industry to optimize performance, mitigate risk and better control costs," said Borislav Mihaylov, CEO of the Insurance Guarantee Fund Bulgaria. "For us it is very important to integrate data across multiple sources allowing for the effective coordination and monitoring of insurance claims bringing benefits to insurance providers and drivers alike. For this reason Guarantee Fund chose IBM over other solutions on the marketplace."
The Guarantee Fund is a government-backed organisation that supports the Bulgarian motor insurance industry ensuring the sustainability, efficiency and transparency of services. It also acts to ensure that accident victims are compensated in a fair and timely manner and that Bulgarian and European standards are observed.
One of the areas to benefit from the integration of data and new web based processes is fraud prevention. According to statistics, currently about 25 percent of all insurance MTPL policies in Bulgaria are duplicated or falsified. By providing a consolidated view of data, the smarter computing solution will reduce the possibility of fraudulent and abusive claims while improving and accelerating customer service. This is accomplished through a combination of data mining technology, data visualization techniques and a powerful scoring and anomaly discovery engine.
"IBM is working with companies and government organisations in the financial services sector around the world to introduce smarter systems which use intelligence to drive operational efficiencies, customer centricity and better risk management," said Alexander Rakov, General Manager of IBM Bulgaria. "This is one of the most sophisticated information systems in the country which supports the very highest standards in the Bulgarian motor insurance industry."
IBM's DB2 database software forms the heart of the new data warehouse solution. IBM Cognos software for business intelligence and financial performance management will be used to analyse an individual's driver and insurance history in order to better manage processes and calculate insurance premiums.
IBM InfoSphere Warehouse and IBM WebSphere Enterprise Service Bus will help to ensure the effective integration and interconnectivity of systems across all engaged insurance companies and government institutions.
The deal also includes IBM Power Systems, IBM System Storage DS8300 and IBM BladeCenter servers to create a robust infrastructure for mixed workloads on distributed systems, offering unparalleled efficiencies for staffing and storage. Under the terms of the agreement IBM will also provide integrated technology and maintenance services.
IBM recently announced details of several other major deals in the financial services industry in Central and Eastern Europe (CEE) as part of a move by banks to improve operational efficiency and benefit from recent advances in mobile and internet technologies. The 10 deals, with a combined value of over USD 130 million, were signed recently with leading banks from across CEE including Sberbank in Russia, PKO Bank Polski in Poland, Erste & Steiermarkische Bank in Croatia, PRAVEX-BANK in Ukraine, Garanti Bank in Turkey, JSC Rietumu Banka in Latvia, Societe Generale in Serbia, NovaLjubljanska Banka in Slovenia and Raiffeisen Bank in Romania and Czech Republic. IBM is providing new hardware, software and services to support efforts by the banks to modernize their core banking systems to prepare for growth, increase efficiencies and take advantage of new market opportunities.
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Pasha Ray Dahncke
IBM Communications (US)