Compliance to regulatory bureau statistical reporting demands is often done as an afterthought or not addressed until the insurer is forced to do so in response to fines or assessments for timeliness or data quality issues from the Bureau or, worse yet, from the regulator. There are a lot of good reasons why insurers have problems complying with stat reporting requirements in a timely or effective manner. Here are four of them:
- “It does nothing to drive new business.”
- “We are saddled with a variety of legacy systems and different platforms making it difficult to capture and retain data in a format that can be reported accurately.”
- “Our technology budgets are under pressure to keep up with changing products and maintaining ‘front end’ systems.”
- “Statistical reporting is largely invisible and few of our personnel are aware of what it is and why it is required.”
However, all insurers must collect data to issue policies and handle claims, as well as comply with regulatory requirements. Insurers with the ability to quickly comply with bureau statistical reporting regulations have a competitive advantage. These insurers tend to be compliant by design, and they proactively utilize their data to identify changing trends and business opportunities. Careful design of front-end systems enables the efficient collection of the “right” data which reduces operational costs while enhancing the customer and agency experience. It also builds-in the ability to quickly meet new demands created by ever changing business and regulatory environments.
If you want to conquer the statistical reporting challenge, here are five things you should consider:
- Don’t limit your thinking to only bureau or regulatory requirements. The same tools used to produce required statistical reporting can also produce vital strategic reports for use internally.
- Be mindful of statistical reporting requirements as existing data/claims systems are enhanced or new systems are implemented.
- Consider all aspects of how data is to be utilized as “front end” administrative and claim systems are being developed or implemented to ensure “back end” requirements such as financial and statutory reporting requirements are addressed.
- Develop data warehouses to consolidate experience from legacy systems regardless of their platform or formats to build a central repository for reporting needs.
- Work to ensure the data is accurately flowing through all systems and is mapped correctly to enable accurate reporting.