End-user modules

Module 'Persons'

The person management module is the central module of the VVS system. Data on all legal and natural persons are placed in a central database, which is common for all types of insurance products (property, life, health, etc.).


The basic features of the module:

Module 'Contracts'

The VVS »Contract Management« module is one of the most important modules in the VVS system. This module implements business processes of insurance product selection, data entry, calculation, validation, policy issuing and contract management. The VVS enables the management of group and single contracts, regardless of the insurance product.

The VVS supports all kinds of insurance product groups. Product structure and insurance tariff rates are defined (arbitrarily, from the VVS viewpoint) through product definition subsystem. Also, for each individual product the system enables definition of arbitrary parameters that should exists on each contract. These additional variables can be defined on the level of a contract, object or insured risk.

All the products applied on the main VVS application server may, without any restriction whatsoever, be applied on mobile, offline systems used by field agents. This system is called AIS, that is, information system for field agents. reports, such as insurance policy, payment slip, insurance certificate, green card (mandatory motor vehicle liability insurance), as well as agent's commission. Done automatically. The “Contract Management” module includes all kinds of business.

In addition to the data needed for contract registration and invoicing, the contract may also include various other data, such as data on vinculation (transferability or ownership), co-insurance, reinsurance, commission, previous insurance, etc.

The VVS »Contract Management« module has built-in standard logic and syntax valuation rules related not only to proposal/contract data, but also to subsequent entries in the analytical and financial accounting subsystems. This ensures data consistency and compatibility in terms of business logic and compliance with accounting standards and regulations.

The VVS system supports installation of the user-defined additional validation rules, designed for specific customer demands. These are, for example, all kinds of logic and syntax controls, depending on the insurance product, whether a contract relates to a legal or natural person, and similar.

Computing and booking of premiums, commissions, co-insurance and reinsurance data is done automatically.

An overview of standard functions related to the VVS “Contract Management” module:

Module 'Claims'

The VVS »Claim Management« module is used in the process of claim notification, entering claim request data, defining claim reserves and payment of damages, and in relation to all other data that should be registered. This module enables automatic generation or manual entry of subrogation, as well as crediting claim payout to a policy or personal account.

This module can be linked to the product definition subsystem and in this way claim amounts can be automatically calculated and generated (e.g. for car insurance policy, together with a specification for the car repair shop). Claim notification may be made not only through the central VVS system, but also through the offline AIS system. In the latter case, transfer from the AIS to the central VVS is ensured.

Data to be collected, entered and stored for claims are specific for each product. Because of this, the VVS offers solution by the specially designed module called »Claim Definition«. And from the »Product Definition« module, one can define »product - claim type« relation for each product. This ensures correct user input in the claim notification process. When the user enters the claim into the system, the system guides him or her and validates the structure and content of input data against the chosen claim type.

The described system provides customization (validation and adaptation) of data entry for each insurance product. It also enables automatic computation of claim payout and other amounts, automatic cancellation of the insured object, risk or of the whole contract.

The basic features of the »Claim Management« module are as follows:

Module 'Benefits'

The VVS Benefits Management maintains records about all possible event classes and administers the operations with benefit claims resulting from these insurance events. Each benefit claim is based upon an event. For this reason, a benefit claim can only be created if the case corresponds to an event class and has been assigned to it.
Examples of event classes:

The following data can be defined for each event class: Defined characteristics are displayed in the Benefits Management in the General Data dialog box. If a benefit claims is to be rejected, the defined rejection causes are freely available. The benefit classes specify which benefit items can be entered for a benefit claim.
Examples of possible benefit classes:

The object relation defines which object classes can be affected in a specific benefit claim.


It can be specified whether the object has to be included in the contract as an insured object or whether there is a general relation between the benefit claim and the object. For this form of relation, additional characteristics can be defined.
As an additional part of the object relation, relations to persons can be defined. There can be a relation between one or more persons and the affected object – such persons can be for example the driver, passenger, witness, etc..

Benefit claim/person can be used to define relations to persons who are in some way connected with the benefit claim and should be registered, such as:

To allow customization of the user interface, various user exits are available to the administrator. This supplementary feature can be used to adjust all VVS modules to changing working requirements of company employees.

Module 'Commissions'

The commission subsystem supports two basic types of commission:

The acquisition commission is a commission payable to a sales agent as remuneration for entering into an insurance contract. The calculation of this commission is usually based on the insured sum, one-year premium net amount, level of annuity in pension insurance etc. The payment of the commission is often related to the payment of the premium. The payment can be arranged in instalments, e.g. 30% after the expiration of the first 6 months of the policy, 50% in the next 12 months, 20% in the next 18 months. All these data are defined by the customer and defined at the level of risk.

The collecting commission is a commission payable to a sales agent as remuneration for the continuity of the insurance contract. The computation is usually based on the insurance premium, and the payment is related to the payment of insurance. This commission is payable up until the time the insurance contract expires. The data on modes of computation of the collecting commission are defined at the level of risk.

The data on the computation of commission and payment arrangements are defined in the VVS »Commission« subsystem, in what are called commission tables. It is possible to define an unlimited number of these tables. The »Person« module defines the "agent - commission table" relation for each insurance agent. When a new insurance contract request is entered or when the existing one is changed/cancelled, the VVS system uses predefined commission data in automatic computation and booking of commission amounts for particular agents. The accounting subsystem provides automatic commission payment transaction export.

Module 'Accounting'

The VVS accounting subsystem has two parts:

Accounting entries may be made automatically and manually. Premium, unearned premium, income and claims based on the premium, reinsurance and co-insurance shares, claim reserves, claim reserve corrections, subrogation, commissions, etc. are entered automatically.

Claim payout can be automatically decreased by the amount of the premium due. This difference is then booked on the credit side. Letters to clients may be automatically printed.

All personal accounts are kept according to the open-item tracking system. Automatic reminder subsystem, will be explained later, operates according to this principle as well.

Payment transaction import and export module is an integral part of the accounting subsystem. The VVS system supports both payment transaction systems used in Slovenia. Accounting entries are made automatically, including data validation and closure of open items.

The VVS makes parallel accounting entries to personal and financial accounts. As a result, the user may at any time read the current financial data on invoiced premiums, commissions, claims, co-insurance and reinsurance, both at the insurance product level or at the personal level.

There is only one official currency defined in the system (domestic currency of the insurance company, e.g. SIT). However, it is possible to choose another foreign currency, at the level of a financial business object, (e.g. policy premium or insured sum, claim payout, all kinds of payments, etc.). In these cases, the VVS makes automatic conversion into the domestic currency, using the currency rate subsystem. Such bookings are made in the domestic and foreign currency simultaneously. The closure of such items (e.g. payment) may produce exchange rate differences, which are automatically handled and booked on a predefined account in the financial accounting subsystem.

The VVS accounting subsystem incorporates a set of standard reports, from simple ones such as account overviews, listings of open items by accounts, to the most complex ones such as balance sheets and profit & loss account.

Based on the financial accounting data, various analyses may be made, grouped by insurance products, insurance agencies, time periods, etc. For reporting purposes, the VVS system uses its own script language and Crystal Reports?.

The VVS accounting system supports the function of cash management by branch offices and outgoing bills bookkeeping.

Before any customer installation, the VVS accounting subsystem should be adjusted to the customer's specific demands. Customization is done by means of specially designed modules. It includes definition of the company's system of accounts (kontni plan), as well as all accounting record types and accounting item types.

The VVS allows full control over the accounting system (account balance, payment transactions, reminder status, claim payouts, etc.). Many of these processes are completely automated, i.e. account balance is updated in real time, any change relating to a policy, claim or payment is automatically recorded on the relevant account, etc.

On the other hand, the VVS enables various predefined and arbitrary manual accounting records e.g. manual premiums, payments, claim bookings, but it is preferable to use as much automatic processes as possible (e.g. monthly invoicing, payment transactions import of data from electronic media, and similar).

Automatic payment transactions export can be used for payment of claims, commissions and the like. The application suggests a list of payment transactions. After review, the user selects and confirms some of the suggested items for processing. After this, a bookkeeping document is generated and file is produced in a user-defined format. The file is usually sent and used in external systems (by external entities such as banks, companies, legal persons, etc.).

The automatic reminder subsystem is based on the open-item tracking system in the premium accounting. For each insurance product it is possible to define a specific reminder system. It can include up to 5 reminder levels, and for each level, different actions may be specified (e.g. print one or more different letters to be sent to different addresses, calculation of penalty interest, reminder expenses, automatic bookings and similar). All reminder functions are automatic. The reminder status is managed at the level of one open item.

Claim payout can be automatically decreased by the amount of the premium due. This difference is then booked on the credit side. Letters to clients may be automatically printed.

The acquisition commission is a commission payable to a sales agent as remuneration for entering into an insurance contract. The calculation of this commission is usually based on the insured sum, one-year premium net amount, level of annuity in pension insurance etc. The payment of the commission is often related to the payment of the premium. The payment can be arranged in instalments, e.g. 30% after the expiration of the first 6 months of the policy, 50% in the next 12 months, 20% in the next 18 months. All these data are defined by the customer and defined at the level of risk.

The collecting commission is a commission payable to a sales agent as remuneration for the continuity of the insurance contract. The computation is usually based on the insurance premium, and the payment is related to the payment of insurance. This commission is payable up until the time the insurance contract expires. The data on modes of computation of the collecting commission are defined at the level of risk.

The data on the computation of commission and payment arrangements are defined in the VVS »Commission« subsystem, in what are called commission tables. It is possible to define an unlimited number of these tables. The »Person« module defines the "agent - commission table" relation for each insurance agent. When a new insurance contract request is entered or when the existing one is changed/cancelled, the VVS system uses predefined commission data in automatic computation and booking of commission amounts for particular agents. The accounting subsystem provides automatic commission payment transaction export.

Module 'Contributory insurance / Reinsurance'

Standard VVS supports reinsurance functions, based on the treaty reinsurance and facultative reinsurance.
Obligatory reinsurance, based on a standing agreement between the reinsured and the reinsurer for the cession and assumption of certain risks, as defined in the reinsurance treaty includes:

The system automatically assigns and calculates shares of each reinsurer in obligatory reinsurance, for each insurance contract separately. At the same time, reinsurance commissions are also computed and booked automatically. All computations are based on reinsurance treaties defined through a special VVS administration module.

Facultative reinsurance must be entered manually, which can be validated by specific user- defined validation rules. As in the case with obligatory reinsurance, facultative reinsurance also triggers automatic computation and booking of the premium and commission.

All changes to the contract have the effect of automatic recalculation of reinsurance shares in the premium and commission. These changes are also automatically booked.

Based on the data on reinsurance and claims, reinsurance shares in claim reserves, subrogations and claim payouts are computed and booked automatically. As is the case with contracts, all changes in claims that have influence on reinsurance, are also automatically computed and booked, and are included in the main reinsurance computation.

Subject to reinsurance computation periods as set out in the contract, the system automatically performs reinsurance computation and generates detailed and summary reports (Reinsurance bordereau).

The VVS supports co-insurance functions. On the basis of data on co-insurance, as defined in the insurance product, the system computes and books co-insurance shares in the premium, claim reserves, subrogations and claim payouts.

All changes to the contract have the effect of automatic recalculation of co-insurance shares in the premium. These changes are also automatically booked.

Based on the data on co-insurance and claims, co-insurance shares in claim reserves, subrogations and claim payouts are computed and booked automatically. As is the case with contracts, all changes in claims that have influence on co-insurance, are also automatically computed and booked, and are included in the main co-insurance computation.

Subject to co-insurance computation periods as set out in the contract, the system performs co-insurance computation and generates detailed and summary reports (Co-insurance bordereau).