For being just five years old, the eXtensible Business Re-porting Language (XBRL) has gained some important fans in the insurance world, not the least of whom include the National Association of Insurance Com- missioners (NAIC), the people with the charge to keep an eye on the insurance industry and (some would say) make life miserable for the carriers of the country. Although that latter job description is nowhere to be found in the NAIC charter, insurers are to be excused if they are somewhat leery of the regulatory world. Fifty regulators in 50 states make statutory reporting a nightmare, both in the submission of reports and the access insurers desire to the reports submitted by their peers. Thats why the NAICs move to adopt a standard that will make the reporting process much easier is a sign commissioners dont really hate insurers after all.

Security National Life, like many insurance carriers, submits its reports to the states on PDF files that are sent electronically. This is more beneficial than the paper-form days, but Steve Sill, vice president, treasurer, and CFO of Security National Life, knows the system has its drawbacks. [PDF files] make it hard to exchange data with other companies, he says. Its pretty important to know what your competitors are doing and get that type of information. As he points out, an insurers annual report to the department of insurance in the states in which it operates are public documents, so any step to have a standard reporting language will make it simpler for carriers to get the information they need.

Mele Lynn Fuller, interface architect with Safeco Insurance, says her company has no plans to jump on the XBRL bandwagon until one significant event occurs: The NAIC requires it. Having worked for years with standards organizations such as ACORD, she points out, Unless somebody has started to deal with internal integration using XML in the financial end of their work, I suspect [insurers] are going to sit back and wait until somebody demands it.