Technology Solutions to Simplify Insurance Services and Reduce Congestion under Discussion

Ulaanbaatar, April 8, 2024 /MONTSAME/. In commemoration of the insurance industry's 90th anniversary, the Mongolian Insurance Association launched the "Biggest 1% of the Year" campaign. On April 5, 2024, the Association hosted a meeting titled "Positive Impact of Insurtech in Reducing Congestion" in Ulaanbaatar.

During the event, P. Sainzorig, First Deputy Governor of Ulaanbaatar, highlighted the significant impact of traffic congestion on residents. He stated, "Residents of the capital city spend an entire month stuck in traffic jams annually." Mr. Sainzorig emphasized the government's commitment to addressing this issue, citing the recent approval of a package of e-development laws. These laws will facilitate the seamless sharing and utilization of government data by the private sector. He elaborated on potential applications within the insurance industry. "Insurance companies can utilize technology to resolve accidents immediately, leveraging camera footage to expedite the process and eliminate the need to wait for police arrival. For minor accidents without third-party involvement or injuries, technological solutions can streamline processing for quicker resolution." He also mentioned the potential for insurance companies to improve efficiency by offering contract repair services and utilizing benchmarks for damage assessments, eliminating the need for asset appraisals.

Nationally, statistics reveal a significant number of traffic accidents. In 2023, there were 25,235 accidents reported, with over 80% (21,000) occurring in the capital city.  Approximately 2,600 of these accidents contribute directly to traffic congestion, hindering traffic flow. The average time to resolve a typical accident is 38 minutes, mirroring the average time drivers spend stuck in congestion. Furthermore, 71% of these accidents occur during peak hours (8:00 AM to 7:00 PM). Considering these statistics, insurance companies and industry professionals are actively seeking solutions to mitigate congestion caused by traffic accidents.

T. Batzul, President of the Mongolian Insurance Association, presented a technological solution called the "Zuragu System." This system leverages artificial intelligence to facilitate on-site accident assessments, ultimately reducing the time required to contact insurance companies after an incident. Additionally, blockchain technology is being explored to map risk zones within the capital city through risk information mapping, an integrated system in the insurance industry. It is estimated that the establishment of an ecosystem by linking an insurance database to the existing government database could potentially decrease congestion by 10-15 percent. Mr. Batzul also emphasized the importance of collaboration between the government and private sector to address traffic congestion, developing solutions that minimize manual processes, expedite claim resolution, and ultimately lessen the impact on traffic flow.