JERSEY CITY, N.J., May 12, 2004 — Insurance Services Office, Inc. (ISO) will collect and consolidate statistical data for the U.S. Treasury Department's Terrorism Risk Insurance Program (TRIP) under a subcontracting agreement with Paragon Strategic Solutions, Inc. Paragon, a subsidiary of Benfield Inc., was selected by the Treasury as the program's administrator.
ISO will coordinate the transmission of data from Paragon and act as the statistical agent for the Treasury. ISO will also establish secure web-based systems to collect and consolidate insurance company claims data from events the Treasury designates as catastrophes. The ISO system will allow the creation of reports and provide ad hoc queries required by TRIP.
Following the passage of the Terrorism Risk Insurance Act (TRIA) in 2002, the Treasury set up a program to administer a federal reinsurance backstop for carriers incurring catastrophic losses from a terrorist event.
Under TRIP, Paragon will receive claims data from insurers, verify the information and validate payments according to a formula set by TRIA. ISO will review the data sent by Paragon and cross-check it for quality. ISO will post data electronically to a secure database that will allow secure website access. The secure web-based system can be accessed by the Treasury, Paragon and anyone else that the Treasury designates.
"ISO's leadership in managing data in multiple formats is well established in the property/casualty industry," said Carole J. Banfield, ISO executive vice president. "Working closely with Paragon, ISO will perform data quality checks for accuracy and maintain audit trails for verifying any errors, as well as monitor the claims payments system in case the Treasury activates TRIP following a terrorist event," Banfield added.
ISO is a leading provider of products and services that help measure, manage and reduce risk. ISO provides data, analytics and decision-support solutions to professionals in many fields, including insurance, finance, real estate, health services, government and human resources. Professionals use ISO's databases and services to classify and evaluate a variety of risks and detect potential fraud accurately. In the U.S. and around the world, ISO's services help customers protect people, property and financial assets.