Business processes in insurance, Bases of business processes...

4.2. Business processes in insurance

4.2.1. Basics of business processes: concept and typology

Business Process Concept

Traditionally, a business process (BP) is defined as a logical sequence of actions to solve specific tasks.

From the point of view of the practice of applying BP, we give the following definition.

Business Process is a set of necessary and sufficient measures that optimally (most effectively) link the beginning and result of a specific economic, administrative or business task.

Business processes are built by means of analytical differentiation of the general process into elementary components (univariantly described elements of the process), with subsequent synthetic integration (generalization) of related elements of the process according to functional, intellectual, technological, territorial and other characteristics.

Thus, the process is first analyzed from the point of view of identifying its elements, then the elements are classified according to the specified functional criteria (qualification requirements, exposure time, technical support, etc.), and then a system of generalizing the elements by the resource cost criterion for more effective use of the required resource. In the end, the sequence of operations for a given PSU with a given (requested, expected) quality level is fixed.

The expanded version of the description of the BP also reflects the parameters of the required technical resources, material resources, the parameter of significance (criticality) of the process (element), etc.

Through a detailed description of the business process, we identify those elements and milestones that can be key, both from the point of view of the effectiveness of decisions taken, and from the point of view of load sharing (including qualification load) among specialists.

To create an effective product in insurance, it is necessary that specialists take part in it:

- for attracting (acquiring, selling, promoting);

- accounting (accounting, tax department, actuarial calculations department);

- underwriting and placement of risk (reinsurance);

- settlement of losses.

Table 4.2. Description of the Elementary Business Process "Acceptance of the Slip by the Reinsurer"

It is these four areas that are key, since the inconsistency of the actions of these units leads to the fact that the "nominated" the quality of the product differs from the quality of the product actually provided in connection with the unaccounted for a number of objective circumstances specified by the adjacent units. At the same time, it is during the joint work on the product that specialists of various divisions form for themselves a more objective view of the requirements to the product that the adjacent units display, as well as the set of expectations that the customer makes to the quality of the product.

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