JERSEY CITY, N.J., November 12, 2001 — Insurance Services Office, Inc. (ISO) has expanded the ISO ClaimSearch® antifraud system with a detailed database of Auto Physical Damage (APD) claims records, so insurers and other authorized users can perform in-depth, cross-line searches among property, casualty and auto claims in the industry's most comprehensive claims information repository.
The expanded auto database contains 129 million detailed claims records, including five years of new claims-history records.
The expanded auto database provides insurers' claims-handling units, investigators, call centers and other authorized personnel more complete claims reports on insureds or claimants and vehicles, including cross-line searches to match incoming APD claims with auto, property and casualty claims data already available in the ISO ClaimSearch system.
"The new Auto Physical Damage service is another significant milestone in the industry's fight against insurance fraud," said Richard P. Boehning, ISO's senior vice president.
"The industry has not had a complete auto service that can provide full claims histories immediately at first notice of loss. With more complete auto physical-damage claims histories at their disposal, ISO ClaimSearch participants can now better assess and cross-check new claims against existing records to deny or reduce questionable or non-meritorious physical-damage claims. We estimate this service could save insurers as much as $600 million a year in auto physical-damage claims costs," Boehning added.
Insurance fraud costs the U.S. property/casualty industry nearly $29 billion a year. An estimated 10 percent of auto physical-damage claims are fraudulent, Boehning noted.
The ISO ClaimSearch system's existing auto-claims segment contains information on auto theft and salvage claims as well as impounded and exported vehicles. It also contains information on some auto damage that is provided by the largest damage-estimating vendors. However, the damage information available is based on Vehicle Identification Number (VIN) and cannot be accessed by name of the insured or claimant.
ISO plans to expand the APD database with several new capabilities in 2002, including an APD FastCheckSM service that will provide immediate information on prior auto physical-damage claims — at first notice of loss — to insurers' call center or claims department personnel.
APD FastCheck, available through the Internet and system interfaces, will provide claims-history detail and a "claim indicator" score to help direct processing of the claim. The indicator will take into account the vehicle and insured's claim history — number and type of claims, how recently a claim was filed, severity and relevance to auto physical damage, and other factors — to develop a general guideline that a claims professional can use to determine whether to fast-track or further investigate personal auto physical-damage claims.
ISO ClaimSearch is the world's largest repository of insurance claims, with more than 245 million claims and third-party information. Insurers representing more than 92 percent of the U.S. property/casualty industry in premium volume use the system. The system receives 250,000 claims in all property/casualty lines every day. ISO ClaimSearch information is available online and through ISOnet®, ISO's secure Internet information-delivery platform.
ISO ClaimSearch is a cooperative effort of more than 2,000 insurers, 1,000 self-insured entities, 450 third-party administrators, and many of the state workers' compensation insurance funds.