Transcript Marianne Allard

Combating
Uninsured Driving
2011 Annual Region I Conference
What is the IICMVA?
Insurance Industry Committee on Motor Vehicle Administration
 Non-profit, all industry advisory group
 Liaison between the insurance industry and
Motor Vehicle Departments
 Assist with the implementation & maintenance of
compulsory insurance and financial responsibility
laws
 Advisory and subject matter expert on other
significant motor vehicle administration issues
• Driver Licensing
• Vehicle titling & branding
• Vehicle registration
•
•
Motor vehicle records (MVR
content & availability)
Proof of Coverage (Auto ID
Cards)
Who is the IICMVA?
Insurance Industry Committee on Motor Vehicle Administration
 32 Individual Members Companies
Representing a Market Share of:
 50% Commercial Auto Insurance
 70% Personal Auto Insurance
 3 Trade Associations
 AIA – 350 Member Insurers
 PCIAA – 1000 Member Insurers
 NAMIC – 1400 Member Insurers
 IICMVA is vendor neutral
ESTIMATED PERCENTAGE OF UNINSURED
MOTORISTS BY STATE, 2009 (1)
(1)
(2)
Percentage of uninsured drivers, as measured by the ratio of uninsured motorists (UM) claims to bodily injury (BI) claims
frequencies.
In FL, compulsory auto laws apply to PIP and physical damage, but not to third party bodily injury coverage.
Source: Insurance Research Council.
Reporting Today
 32 States have some form of ALIR program
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2 states are manual
12 states use EDI with X12 or Proprietary
14 state use EFTP, SFTP, FTP or HTTPS
3 states use Web Services (as primary), 4 as a secondary process
27 States have Commercial Reporting (20 Required)
 Cost to build & maintain ALIR
programs by state & insurers
 Cost passed back to policy holders
(insured) & registered vehicle owners
 Customers with insurance routinely
identified as uninsured.
Inherent Problems
 Data Consistency
DMV data vs. Insurance Company data
 Data Accuracy
Typographical Errors
Miscommunication
Outdated/Obsolete data
 Timeliness
Data delays inherent with technology
 Security
Transmitting large volumes of personal
information
DMV
Insurance
Company
Additional Cost
 Collect & Transmit data
 House, process and monitor data
 More difficult to identify the true uninsured motorist
 Can cause calculated UM rate to increase
 Correction Process – letters & calls to customers
Event Based
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Registration
Registration Renewal
Traffic Stop
Motor Vehicle Accident
Court Proceedings
 Events found in Laws & Regulations
 Laws also described the form and content of the
proof or evidence of insurance
 Burden on vehicle owner or vehicle operator to
present evidence at the time of these events
Original Process
ID
CARD
ID
CARD
Verification
Identify Insurance Company
(From Customer/Document)
Policy Number/Policy Key
(From Customer/Document)
NAIC
Policy Key
Vehicle Identification Number
(Registration/Title Document)
VIN
Verification Date
Date
Event Date – Registration,
Renewal, Traffic Stop, MVA
CONFIRMED!
Enter Technology
Web Service Standards
 Reliable message delivery standards were being
developed
 Web Services was quickly identified as an application
suited for insurance verification
 Simple mechanism to connect applications or
devices regardless of their technology or location
 Leverages the internet for low cost communication
 Based on industry standards & protocols
OLV Model
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Registration
Registration Renewal
Traffic Stop
Motor Vehicle Accident
Court Proceedings
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NAIC Number
Policy Key (Policy Number)
VIN
Requested Confirmation Date
Web services Technology for Online Verification
Real-time Verification !!!
Web Services Solution
The insurance company’s response indicates whether it
can confirm insurance meeting the minimum financial
obligations is present in their database on the date in
question
 It does NOT identify specific limits
 Does not confirm coverage – Confirms Evidence is
valid
 Security Benefits - message level security
• Secure, encrypted transmission
• Personal information is not passed
Model In Use
Company A
Web Service
Motor Vehicle Department
Law Enforcement
Jurisdiction
System
Company B
Web Service
Data
Storage
Data
Storage
Data
Storage
Data
Storage
Vehicle Owners (PIN)
Courts/DOJ
Ongoing Verification
*Auto Rechecks
*Letter Campaign
Detailed Reporting
*Uninsured Motorist Rate
*Insurers’ Performance
Insurer Table
Unknown Carrier Table
Automatic Rechecks
Pointer Data
Cancellations
Optional Input
*Direct Access
*Web Browser Input
Web Services
Agent (vendor
or self
developed)
Data
Storage
Interne
t
Company C
Web Service
Data
Storage
Insurer Table
Data
Storage
Company D
Web Service
Data
Storage
Web Services Agent
Insurance Company stores data
* Real Time Inquiries processed
* Highly Availably data (24/7)
* 5 Second Response Time
Data
Storage
Data
Storage
Data
Storage
Best Practices
Use Evidence of Insurance
• Already on the books
• Alternative to paper/bar codes
Harness technology
• Web services to verify evidence
• Cost effective, efficient & secure
Enforcement is Key
Redress process
Marianne Allard
Chair, Board of Directors
IICMVA
[email protected]
860-277-6299