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ValueCard: SMS Tender System
Introduction
ValueCard TenderSystem is an Internet based procurement system for the replacement of personal lines and small commercial insurance claims. Launched in August 2002, it enables insurance companies and brokers to improve their loss ratio and client service.
This tried and tested technology leverages the age-old principle of supply and demand through formulated business procedures. This ensures that our clients settle claims at the best possible prices, at a lower administration and management cost, than any other method.
During the last 6 months clients settling claims through TenderSystem have achieved an audited saving of 20.33% (auditors certificate available on request), based on claimant quotations. The largest saving achieved was 66.3%, which illustrates the possibility of certain claimants inflating claims to earn a large cash settlement.
How does ValueCard's Tender System work?
When an insurance claim is approved an invitation is sent to all your panel merchants in the specific area, inviting them to quote for the replacement of the claimed products. Tenders are sent by SMS, email or a combination of both, depending on the merchant's preference.
Merchants tender by returning the suitable substitution model, validity period, stock availability and the price at which they are willing to replace the product. Tenders are closed, currently within 3 business hours, and a report is sent to the claims agent indicating which merchants are the most suitable to replace the requested products.
Claims agents or assessors complete the claim and a purchase order is sent to the successful merchant. An optional SMS is also sent to the claimant notifying them that the claim has been approved. The merchant contacts the claimant to arrange delivery or collection.
What are the benefits to an Insurance companies, Brokers, and Assessors?
Insurers achieve the best possible price, at a lower administration expense, than any other method:
- Lower human resource and telephonic expenses as claims agents don't have to phone, fax or email all panel merchants for quotes, follow up responses, capture and process the information:
- Better prices are achieved by combining clients purchasing power and leveraging the age old principle of supply and demand; and
- The possibility of collusive fraud is eliminated.
Improved claims management process
- Managing claims for distributed branches through TenderSystem is just as effective as in a fast track environment due to 3 different administrator levels;
- Automated daily, weekly and monthly reporting facilitates the total management process;
- Administrators are automatically notified when a pre-approved claims agent's mandate is exceeded; and
- Claims agents are automatically reminded of uncompleted claims.
Better service offered to policyholders:
- Claims are completed much quicker (within 3 hours) - same time as cash settlements;
- Claimants do not have to collect 3 quotes from various merchants;
- Automatic verification that products were successfully delivered, installed or collected from merchants; and
- Claimant notified by SMS of the claim approval and who will contact them to finalise the replacement (optional).
Effective management of panel merchants:
- Merchants with a wide branch network are consolidated enabling claims agents to deal with selected insurance specialists;
- Increase or decrease merchant representation as required; and
- Enhance your merchant relationship, as the whole process is transparent.
Implement a Black Economic Empowerment (BEE) procurement policy:
- Draft a balanced scorecard procurement report as outlined by the Financial Sector Charter; and
- TenderSystem enables smaller black empowered companies to tender and replace products.
Purchase Vouchers:
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Discounts of between 7.5% and 35% are achieved when vouchers are requested through TenderSystem for jewellery, clothing, music, sunglasses and sport equipment from reputable SDS retailers such as Edgars, Woolworths, Total Sports, American Swiss, Galaxy and Golfers Club.
Enhanced management information:
- Live reporting, audit trail and statistics are available;
- Price comparison on a national basis.
Quick implementation:
What benefits do merchants achieve?:
- Increased revenue as merchants once again replace lost, stolen or damaged products, which has decreased due to cash settlements and warehouse replacements.
- Quick, easy, convenient inexpensive Tender process.
- Suitable substitution products can be submitted if required.
- Efficient reporting to the successful merchants.
- Efficient reporting to the successful merchants.
- Mobile functionality ensures that merchants don't miss any opportunities.
- Slow moving products can be sold quickly.
What products can be replaced through the Tender System?
Tender items are mostly branded products and services, concentrating on personal lines and small commercial replacements, which can be leveraged to non-branded goods if sufficient information is supplied.
Which merchants are included on the panel?
Insurers have the sole discretion which merchants they want to include on their panel. ValueCard will however make recommendations if there is a shortage in a specific area.
What are the service fees to settle claims through TenderSystem?
Service fees are levied as a percentage of the lowest returned or awarded Tender with a guarantee that average savings achieved will be more than 5% during a calendar month.
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