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7.3.3 Claim‐Payment Failures Of Japan's Insurance Companies And Designing Better Payment Architecture: Finding A Standard Solution To Socio‐Critical Systems By Applying the System Engineering Vee Model Approach (First Report)
Author(s) -
Yasui Toshiyuki
Publication year - 2009
Publication title -
incose international symposium
Language(s) - English
Resource type - Journals
ISSN - 2334-5837
DOI - 10.1002/j.2334-5837.2009.tb01009.x
Subject(s) - payment , architecture , scope (computer science) , test (biology) , corporate governance , externality , actuarial science , business , economics , finance , computer science , microeconomics , art , paleontology , visual arts , biology , programming language
Sociology, political science, economics and international relations traditionally deal with social systems. However, they have not proposed a solution to fix problems when they fail. This paper identifies the scope of social systems in which we can find a solution to cure such failures through three tests; the externality test, mission‐criticality test and controllability test. We name these a socio‐critical system (SCS). Architecture Vee Model can be applied as the standard method to fix failures in an SCS. Massive claim‐payment failures were found in Japan's private insurance companies and they became big social issues in 2005–2008. Japan's financial services supervision authorities identified failures to the full extent and issued successive administrative actions against most insurance companies to encourage them to improve their governance and overall solicitation‐to‐payment systems. This FSA's action, even though it was not necessarily aware of such methodology, proved to be positive in applying Architecture Vee Model to solve failures in those claim‐payment systems, which are typically categorized in SCS.