ISO ClaimSearch Gives Kat Guidelines

Insurers reporting claims to the ISO ClaimSearch system should initially be focusing on losses in the auto and property lines, ISO said.

ISO released guidance for reporting claims in the wake of Hurricane Katrina in response to inquiries from claims departments seeking to know what information should be reported and how to go about doing so.

Given the overwhelming number of claims expected to be filed from New Orleans and the Gulf Coast region, and potentially from those areas affected by Hurricane Rita, "the immediate need is for comprehensive reporting of losses in the auto and property lines," said Richard P. Boehning, senior vice president at ISO. "We expect more claims over time, including the casualty lines as worker' compensation and liability claims begin to come in."

In its guidance, ISO asked that companies report all claims resulting from Hurricane Katrina; include the catastrophe number, (Number 49) and catastrophe indicator if Universal Format--a Web or mainframe--is used; and report the estimated loss amount if possible.

When reporting auto physical damage and vehicles missing because of flood, ISO asked insurers to report claims as auto physical damage with a coverage type of "Comprehensive" and a loss type of "Flood" if Universal Format (Web or mainframe) is used. If the legacy format is used, claims should be reported as "First Party Claims" with a loss type of "Flood/Water."

"We strongly encourage claims departments to report all claims--in all lines of business--resulting from the hurricane," Mr. Boehning said. "Effective reporting will deter fraud, help us identify trends, provide a basis for analysis and support the NICB's Hurricane Katrina Task Force Operation."

In an effort to combat fraud and other crimes, ISO is working with the National Insurance Crime Bureau to make certain that claims filed in the wake of Hurricane Katrina are accurately cataloged.

"Effective reporting will help the NICB's Katrina Task Force Operation track the disposition of the thousands of damaged vehicles being identified and help prevent fraud," noted Robert M. Bryant, president of the NICB.