Data on policies and sums insured in 2019 based on the new surcharge reporting system (SIR): prospects for future improvements in the data and scope of reporting

• The Decision of 27 March 2018 by the President of the Consorcio de Compensación de Seguros approving reporting forms and electronic payment of surcharges collected by insurance companies [Resolución de 27 de marzo de 2018, de la Presidencia del Consorcio de Compensación de Seguros por la que se aprueban los modelos de declaración e ingreso por vía electrónica de los recargos recaudados por las entidades aseguradoras].
   
• The Decision of 31 October 2018 by the President of the Consorcio de Compensación de Seguros on deadlines and procedures for reporting and paying surcharges collected by insurance companies [Resolución de 31 de octubre de 2018, de la Presidencia del Consorcio de Compensación de Seguros por la que se establecen los plazos y el procedimiento de declaración e ingreso de los recargos recaudados por las entidades aseguradoras].

• Reporting to the CCS: (i) the identifying particulars of the policies on which surcharges are charged and (ii) the location of the perils covered.
   
• Adapting the surcharge reporting and payment system to an updated functional and digital environment with use of proven operational and technical media by insurers in the framework of agreements, secure information exchange, temporal traceability of surcharge reporting and payment, and a streamlined reporting and debit system.
   
• For companies, bringing on stream technical improvements to facilitate surcharge reporting and payment, e.g., automatic report form generation, and to facilitate direct reporting and clearing of refunds during the policy period.

Figure 1. Information reported by insurers using the SIR.

• To present and analyse the data on policies and sums insured for the year 2019 obtained using the SIR.
   
• To discuss possible improvements that could be effected to increase the quality of the data based on this analysis of the data for the first year under the new system.
   
• To consider the scope of all these data in future.

Figure 2. Number of policies by risk category. Property. 2019.

Figure 3. Number of policies by risk category. Property. 2018.

Figure 4. Percentage distribution of policies by risk category. Property. 2019.

Figure 6. Sums insured by risk category. Property damage. 2019.

Figure 7. Sums insured by risk category. Property damage. 2018.

Figure 8. Percentage distribution of sums insured by risk category. Property damage. 2019.

Number of policies, sums insured, and mean sums insured by risk category 2019

Figure 10. No. of policies, sums insured, and mean sums insured by risk category. 2019.

Distribution by risk category as apportioned in 2018.

Figure 11. Number of policies by risk category. Business interruption. 2019.

Figure 12. Number of policies by risk category. Business interruption. 2018.

Figure 13. Percentage distribution of policies by risk category. Business interruption. 2019.

Distribution by risk category as apportioned in 2018.

Figure 15. Sums insured by risk category. BI. 2019.

Figure 16. Sums insured by risk category. BI. 2018.

Figure 17. Percentage distribution of sums insured by risk category. BI. 2019.

Figure 18. Time trend for sums insured. Business interruption. Time series for 2000-2019.

Number of policies, insured sums, and mean insured sums by risk category 2019

* Does not include "Insured Sums", because this value is not a factor for calculating the Fund's surcharges for BI, which are here based on the insured sums for property damage.

Figure 19. No. of policies, sums insured, and mean sums insured by risk category. BI. 2019.

Figure 20. Number of policies by type of insurance. Personal injury. 2019 and 2018.

Figure 21. Percentage distribution of no. of policies by type of insurance. 2019.

Figure 22. Time trend for the number of policies. Personal injury. Time series for 2000-2019.

Figure 23. Sums insured by type of insurance. Personal injury. 2019 and 2018.

Figure 24. Distribution of sums insured. Personal injury. 2019.

Number of policies, sums insured, and mean sums insured by risk category 2019

Figure 26. No. of policies, sums insured, and mean sums insured by risk category. 2019.

Policies and insured sums 2019

Figure 27. 2019 data on policies and sums insured.

• The overall data for the insurance sector for 2019 are uniform and consistent with the data for previous years.
• Errors by certain insurers in the reporting procedure have been detected and have had to be addressed. This was attributable to the system's inherent flexibility in data entry and reporting by insurers during the first year of operation.
• In relation to this same aspect, there remains considerable room for improvement of the quality of the data in the SIR. 

1. New transaction data validation will be added to the SIR application to improve the quality of the data reported by insurers. 
   
   This change will require some insurance companies to change their procedures to meet the new requirements for data files submitted to the Fund. The application will flag deficiencies in the information in the files that have been sent, and these deficiencies will have to be corrected before the system will allow the insurance company's file to be processed. No processing will be possible until the deficiencies in the file have been corrected, and as a result the report will not be deemed to have been properly submitted on time.
   
   Insurance companies will be given sufficient advance notice of implementation of these changes to enable them to make preparations to fulfil the new requirements during 2021, so that the data for that year will be of better quality, and complete and fully valid information will be available in January 2022.
   
   The following compulsory requirements will be established for files reported by insurance companies to improve the quality of the data reported for processing using the SIR: (i) consistency between total values reported, limits of indemnity, and surcharges for exceptional risk coverage will be required; (ii) the post code data item for risk location will have to be a valid code in the Post Office's post code database; and (iii) consistency will also be required for the dates reported, e.g., between the inception data and date of expiry of the coverage.
   
   These measures are intended to help companies complete their files with data of good quality, with a view to improving the data available and the utility and operation of the SIR. 
    
2. Measures dealing with aggregated results at the policy or insurer level, that is, with transactions already reported. 
   
   These measures will entail subsequent validation to detect incidents for specific policies or insurance companies when the relationship between the surcharge, limits, and capital exposure is outside the bounds established by the rate algorithm or when values are outside the range or are inconsistent with values reported in previous years. If these types of discrepancy are found, the insurer will be contacted to review the data.

1. Data on capital exposure will be disclosed, because the maximum sums insured, i.e., insured sums, not capital exposed, were reported in 2019.
    
2. Data on sums insured and capital exposure will be available by geographic location (post code and province) and by category of risk.
   
   Global information on the location of risks nationwide will be made available to insurance companies, providing them with added value over and above the efforts involved in implementing the new surcharge and data reporting model.
   
   CCS, and the insurance sector generally, will be able to use the SIR data to disclose areas where insurance coverage is low and take steps to promote insurance in those areas. The analysis will produce findings relating to incentives to buy insurance, proactive risk reduction measures, protocols for dealing with recurring risks, and so forth.