APCIA Developing Claims Data Standards to Counter Scrutiny
The American Property Casualty Insurance Association is creating standardized claims data coding and definitions to help the industry address growing criticism regarding unpaid claims. At the organization's annual meeting in Boston, APCIA Board Chair David Bell announced the development of a standardized template for claims-closed data calls.
The move follows heightened political pressure stemming from what Bell called the "horseshoe effect," where left- and right-wing populism converge to question the value of insurance policies. Recent Wall Street Journal reports on homeowners and auto insurance claims suggested many claims go unpaid, prompting two U.S. senators to request claims data from major insurers.
Bell, who is also president and chief executive officer of ALPS Corp., stated that claims can be closed without payment for various reasons other than a formal coverage denial. He noted that without consistent definitions, different claim outcomes are easily bundled into alarming statistics that portray receiving a payout as a coin flip.
To build credibility, Bell emphasized that the industry must acknowledge when companies fail to meet proper standards. APCIA is working to establish clear industry expectations so trade groups can defend compliant practices without excusing substandard conduct.
For property and casualty market participants, unified claims reporting standards could become a crucial tool for countering political scrutiny and protecting industry credibility against misleading performance metrics.
Why it matters
Standardized claims data standards could help property and casualty insurers refute misleading denial statistics and navigate rising scrutiny from lawmakers.
FAQ
What is APCIA developing to address claims data criticism?
APCIA is creating a standardized claims-closed data-call template with consistent definitions and coding.
Why are lawmakers asking insurers for claims data?
Two senators requested claims data following Wall Street Journal reports analyzing unpaid auto and homeowners claims.
Who announced the APCIA claims data initiative?
APCIA Board Chair David Bell, who is also the president and CEO of ALPS Corp., announced the effort at the association's annual meeting in Boston.
Source: Insurance Journal. See the original source for full details.
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