All too often we see companies whose insurance technology solutions have left them with critical gaps in compliance. It’s easy to understand why. Handling ISO and NCCI compliance in one market can be challenging, but if you’re a multi-state operation, it quickly becomes unwieldy. With constant changes within the regulatory realm, maintaining adherence to bureau, state and federal regulations requires a full-time staff and full-time attention to detail. Often, companies will ensure paper compliance, but make missteps within their automated processes, causing efficiency to suffer.
Does your insurance technology solution provider support your ongoing compliance needs?
Considering that ISO has developed over 17,500 global standards on any number of subjects, it’s easy to see how compliance can be elusive. Companies could spend millions just to maintain up-to-date knowledge of ISO alone, not to mention the changes to NCCI’s workers’ compensation rating recommendations. State and local compliance only adds to the strain on insurers.
A good insurance technology solutions provider offers compliance support for multiple programs in all fifty states. Look for a provider with real-time management and support capabilities. Also, does your solution provider support individually filed rates, loss cost modifiers, or company deviations? Ensure your provider specifically provides ongoing updates and support for ISO and NCCI. Ask your provider when regulatory updates are applied to your solution and how company mandated deviations are handled. Unless there is a sound and frequent process for applying updates regularly, your compliance could suffer.
Consider what a comprehensive, compliant solution can do to help you achieve your business objectives. The right platform with continuous support and updates can increase your competitive edge and help your company grow its business. For example, one of our customers, a start-up carrier, grew its book of business from zero to $200 million in premiums using our multi-state ISO platform. One enabling factor was our customer’s ability to focus on their business while we managed the technical implications of the many statutory and regulatory changes, which at that time, could have otherwise inundated the fledgling carrier.
In order for your technology solution to protect and propel your business model, you don’t just need a provider, but a support system and a partner in your compliance efforts.
When was the last time you and your provider sat down and discussed your compliance objectives? If you’re unsure, have a talk with your provider and risk management team to understand the repercussions of missed compliance and opportunities.