The nation's insurance regulators have decided they need to go back to the drawing board to create a new system for multistate disaster reporting of loss data.
At the spring meeting of the National Association of Insurance Commissioners in New York this week, the Financial Condition Committee sent a disaster reporting framework proposal back for some retooling to meet industry concerns about confidentiality of information.
However, just who will rework the proposal remains unclear as the Disaster Reporting Working Group has been disbanded after its approval of the current proposal.
Rey Becker, vice president of commercial lines and claims for the Property Casualty Insurers Association of America, said the NAIC move came after industry representatives expressed the fear that any database created by the NAIC for multistate disaster reporting would be subject to demands for information from parties such as plaintiff's attorneys or others since it was not created by an official government entity.
"What we are seeking is uniformity and consistency of data," Mr. Becker said. "But data that makes sense."
Some of the data requested in the proposal that was rejected by the committee was not normally collected by insurers and would have to be done so manually in the event of a disaster, he noted.
No time frame was established by the committee for reworking the proposal, nor was there any mechanism set up to do so at the meeting.
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