Over the past years, insurers have faced a major change in the way their companies submit claims to ISO ClaimSearch®. Carriers have gradually phased out legacy reporting. Beginning this year, participants must report all new claims in Universal Format, either through the web or by system-to-system transmission. ISO worked closely with companies to assist in the process and provided extensive technical support. So far, the conversion of companies to Universal Format has been successful: As of December 2011, of all claims reported, 88 percent were in Universal Format.
Legacy reporting will end completely by December 31, 2012, when ISO also discontinues acceptance of updates and supplements to legacy claims in the database.
With this change come advantages in terms of collecting more comprehensive data. Universal Format reporting allows for more data fields at the accident level, and more data captured means more information for investigations. Individual companies and their claims processors are responsible for collecting this additional information. However, companies that increase their data collection definitely help improve the quality of the data available to the entire industry for claims evaluation and insurance fraud detection.
In addition to increasing data quality, Universal Format is now the platform for ISO’s delivery of enhanced services, such as claim scoring, appending missing data, and the inclusion of fraud indicators and flags.
This article is part of the State of Insurance Claims series