Due to the global economic situation, developments in the insurance industry, changes in regulation, consumer spending habits and the changing demands, we have set the following development plans to cope with market changes and improve our competitiveness.
1. Improve information systems foundation and structure
Managerial decisions must be based upon real-time information and accurate figures which cannot be possible without a sound IT structure and system in place. We will start with improving the basic foundations to improve processing speed, reduce transfer time, improve the quality of data entry, and reduce the risks of corrupt data. We will then continue to improve core systems so that underwriting, reinsurance, claims and accounting are all integrated under one system.
2. Improve actuarial support and analysis
In order to provide innovative products and strive for profitability instead of premium growth, actuaries need to analyze the rates. We have hired several actuaries and set up an Actuarial Center within the Product Filing and Research Department for this purpose. Aside from IT upgrades and the establishment of an actuarial data bank, the Product Filing & Research Department will engage in the distribution of managerial marketing expenses, analyze loss ratios for the retention of each marketing department, provide actuarial suggestions, and analytical recommendations for reinsurance, rating, commission, loss ratios, rate adequacy, and other recommendations.
3. Introduce corporate risk management and improve internal auditing
In order to raise corporate risk management awareness, Union established the Risk Management Team in 2007 and later upgraded it to Risk Management and Control Assessment Committee in 2008. To evaluate and supervise the Company’s risk undertaking abilities, conditions of the risks undertaken, possible future risks, we decide on risk aversion strategies and risk management procedures to achieve a healthy balance between income, safety, and profitability.