Making the Case For One-Stop Shopping

ISO’s Steven Craig and Sean Quillivan outline the thinking behind their Coverage Verifier suite of services.

BEST’S REVIEW: What does the Coverage Verifier service address, and what do insurers draw from it?

CRAIG: The CV suite of services is really a combination of multiple processes. The base information that comes in to us feeds our Coverage Verifier database, which companies use for assessing coverages, proof of current insurance and other items. We’ve gone through and expanded that single data feed to leverage it for our CV-Exchange and CV-ALIR (which is automobile liability insurance reporting). These services help companies with part of their regulatory and account-support responsibilities. They’re things that companies can outsource to help reduce their costs.

BR: And how do companies typically handle these functions now?

QUILLIVAN: A lot of them are doing it in-house. They are diverting valuable resources away from their core business, which is writing insurance. In the case of CV Exchange, which handles the delivery of the loss payee and mortgagee notifications, a lot of times they are printing and mailing loads of paper, incurring postage costs.
On the ALIR side, those are state-specific auto liability insurance reporting programs. The requirements vary from state to state. They’re changing. Legislation pops up every year, every session, where more states are moving toward having some type of mandatory ALIR program. So, with the whole single-data-feed concept, insurers can make better use of the resources.

BR: Policy data has to be submitted in a uniform standard. Is that a big change for a lot of insurers?

QUILLIVAN: Not as much as you would think. It’s pretty straightforward. It’s information that’s in their policy-management systems today. A lot of the information on the dec page is what would be required to contribute data to Coverage Verifier, and, in turn, give us the information we need to let us provide the CV Services.

BR: Where does this fit into the area of compliance?

QUILLIVAN: This is our business. This is an area we’re really focused on. For example, if you were talking about ALIR reporting, whereas an insurer may be in contact with the state once a month, we’re in contact with that state daily. On the CV Exchange side, again, we have a lot of electronic relationships with lenders that help us move that information more quickly. You’re assured that the information is being delivered as it was intended to be.

CRAIG: I’d like to add that ISO maintains a highly specialized staff of attorneys and insurance experts. We review and respond to changes in the law, court decisions, and regulatory offerings that affect our industry and our customers. For example, in 2006 ISO staff reviewed over 10,000 pieces of legislation. Of these, nearly 3,000 affected ISO products, and 275 of these pieces of legislation were enacted into law. In response, ISO issued more than 500 regulatory bulletins, notices of rulemaking and other actions. It’s a demonstration that, for decades, ISO has been a very trusted intermediary between the insurance industry and regulators.
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