As insurance companies and state fraud bureaus look to stay proactive in the fight against illegal activity, collaboration is key. With this in mind, the National Association of Insurance Commissioners and National Insurance Crime Bureau are merging their online reporting systems to collect data from private insurers and the public nationwide.
As part of the new initiative, regulators in Washington, D.C., and Ohio have been piloting the new referral system with rollout to additional states expected soon.
Stephen Perry, associate commissioner for enforcement and investigation with the District’s Department of Insurance, Securities and Banking says having one central reporting conduit “is working.”
“I think there is less confusion,” he recently told IFAwebnews.com. “We have a more standardized format that gets to the states now.”
Alan Haskins, director of government affairs for the NICB, said the idea of a single, central fraud referral system has been “kicked around” for nearly seven years. He noted that 42 states have mandatory reporting laws and have evolved from their own reporting system, using data faxed to state regulators, to online systems, but have sought one central location for nationwide data collection.
The NICB, which represents more than 1,000 commercial and personal line property-casualty insurers and self-insured organizations, and the NAIC, which represents the nation’s state insurance commissioners, worked together toward making that a reality, Haskins said.
“In this industry, a lot of times, you can’t get everyone to agree, but all the parties have worked toward this,” he said. “The ultimate goal is to make it easier and uniform.”
This story originally appeared in the February 2010 print edition of Insurance & Financial Advisor.