AICP GULF STATES CHAPTER 2013 EDUCATION DAY Atlanta, Georgia Market Conduct & Complaint Handling...

AICP GULF STATES CHAPTER2013 EDUCATION DAY

Atlanta, Georgia

Market Conduct & Complaint Handling

June 21, 20132:45 PM – 3:30 PM

Fred E. Karlinsky, Esq.Colodny, Fass, Talenfeld, Karlinsky, Abate & Webb, P.A.

Debra M. Peirce, Chief Market Conduct ExaminerGeorgia Insurance Department

Mark Ossi, Deputy Division Director of Insurance & Financial Oversight

Georgia Insurance Department Ted Hamby, Deputy Commissioner of Life & Health Division

North Carolina Department of Insurance

www.cftlaw.com© 2013 All Rights Reserved


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DISCLAIMER

The materials in this presentation are intended to provide a general overview of the issues contained herein and are not intended nor should they be construed to provide specific legal or regulatory guidance or advice. If you have any questions or issues of a specific nature you should consult with appropriate legal or regulatory counsel to review the specific circumstances involved. Transmission or reproduction of any of the information contained herein is prohibited without the express written consent of Colodny, Fass, Talenfeld, Karlinsky, Abate & Webb, P.A.


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AGENDA

Market Conduct Trends The Market Conduct Annual Statement (MCAS)

Update The Insured Perspective The Ins and Outs from the Georgia Insurance

Department The Regulator Perspective Questions

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Market Conduct Trends


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MARKET CONDUCT TRENDS

According to the Insurance Networking News, in April 2012, ninety-two percent of annuity and insurance providers use social media of some form; Five P&C companies offer four or more Facebook pages while the industry average is two per firm.

Large insurance companies, such as Allstate, Liberty Mutual, and Hartford Financial, maintain 13 Twitter accounts according to Insurance Networking News.

Social Media


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Significantly decreases marketing costs. Social media is used as a defensive maneuver.

Insurers listen to what customers say online and respond to the comments.

Attempt to change public perception. Used to build trust through ratings and reviews. A good tool in detecting fraud.

Insurance companies are collecting information about their customers to determine if their claims are legitimate.

Social Media


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Social media enables underwriters to learn more about their policyholders, which leads to better pricing and claims handling.

Underwriters can learn more about their potential customers through social media.

Can be used to help solve problems associated with risk assessment.

Social Media


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NAIC has developed two smartphone insurance apps: myHome Inventory app lets users quickly

photograph and capture images, descriptions, bar codes and serial numbers, and then stores them.

The app organizes information by room, and even creates a back-up file for email sharing.

Social Media


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WreckCheck mobile application outlines what to do immediately after an auto accident and helps users create their own report.

The app makes it easy to capture photos and document the necessary information to file an insurance claim.

Lets users email a completed report directly to themselves and their insurance agents.

Social Media


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NAIC created a social media working group to develop a white paper on how insurance companies and producers use social media, identify regulatory compliance issues and provide guidance on how to address these issues.

The draft was released December 2011: An insurer must develop policies and procedures

that comport with existing laws and regulations; An insurer is responsible for the content of its

producers’ posts;

Social Media


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Outline clear delineation between static and interactive social media in order to properly apply regulatory guidelines;

Insurers should train their employees/agents on the company’s social media policies;

They should set up a procedure to monitor, supervise, and enforce; and

The insurer or producer is responsible for complying with the state recordkeeping laws.

Social Media


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In a new era of visibility, the claims process is under intense public scrutiny and must continue to evolve.

Companies are investing in their IT infrastructure and software to help streamline the claims process.

Information can be gathered quickly which will enable companies to investigate and respond faster resulting in better customer support and satisfaction.

IT in Claims Handling


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Mobile technology solutions are allowing customers and adjusters to share information more efficiently.

Insureds prefer to receive a text from the adjustor instead of a phone call; will require more training to ensure adjusters are effectively utilizing their smart phones.

Mobile technology enables field adjusters to have access to more information while they are onsite.

Companies can utilize digital photography to write estimates of damages without the need for an on-inspection.

IT in Claims Handling

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The Market Conduct Annual Statement (MCAS) Update


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MCAS UPDATE

The Market Conduct Annual Statement (MCAS) was first developed with the input of state regulators and representatives from the industry to develop a tool to analyze the market.

By using common data and analysis, states have a uniform method of comparing the performance of companies.

MCAS was initially a pilot program among 9 jurisdictions and now has expanded to 46 states.


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MCAS UPDATE

The data collected consists of: Claims handling – claim denials, processing times,

and lawsuit activity. Underwriting – new issues, policies in force, non-

renewals and cancellations. On April 15, 2011 the NAIC launched a newly

redesigned collection system to simplify the MCAS process.

The new process will help improve state regulation by allowing all participating states to analyze the industry on a national and state level.


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MCAS UPDATE

In the next few years, MCAS will continue to expand by adding new states and new lines of business.

Currently, MCAS data is only collected for private passenger automobile, homeowners and individual life and annuity products.

The NAIC Market Analysis Procedures (D) Working Group was tasked in 2013 to review MCAS data elements and the "Data Call and Definitions" for all lines of business collected and to update them where necessary.

In addition, the Working Group approved the addition of Long Term Care data to be collected.

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The Insured Perspective


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THE INSURED PERSPECTIVE

Claims handling continues to be pivotal in the heated battle for market share.

Market leaders view the quality of the customer experience as the means to demonstrate true customer centricity and differentiate their strength and stability of their brands.

The customer experience has moved up the strategic agenda throughout the insurance industry.

Policyholder expectations regarding the service and communication provided by their carriers has increased drastically.


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Today’s consumers expect everyone at the company to share information and recognize the customer’s identity and history. They don’t want to be asked the same question

multiple times or have to call multiple numbers or visit multiple sites to find their answers.

Younger, more digitally- oriented consumers will not tolerate companies that don’t have integrated systems where they can view date and claims status.

A positive experience in claims helps eliminate reasons for policyholders to consider making a switch.


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Changes to the customer experience, should be tailored to an enterprise strategy.

Insurers that gain insight into and reach a consensus on the types of customers they want to attract will be ahead of the curve on developing the optimal experience.

The key is to identify changes that can deliver immediate-term value.

Customer centricity will create a competitive advantage and market leadership.

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The Ins & Outs from the Georgia Insurance Department

Debra M. Peirce,Chief Market Conduct

Examiner

Mark Ossi,Deputy Division Director of

Insurance & Financial Oversight


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THE INS & OUTS FROM GEORGIA

http://www.oci.ga.gov/


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The Regulator Perspective

Ted Hamby,Deputy Commissioner of the

Life & Health Division


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QUESTIONS


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CONTACT INFORMATION

Fred [email protected]: (954) 332-1749Main: (954) 492-4010

South Florida OfficeOne Financial Plaza

23rd Floor100 SE 3rd AvenueFt. Lauderdale, FL

33394

Tallahassee Office215 S. Monroe Street

Suite 701Tallahassee, FL 32301

Debra [email protected]

(404) 657-7277

Georgia Department of Insurance

Two Martin Luther King Jr. Drive

Atlanta, GA 30334

Mark [email protected](404) 656-0718

Georgia Department of Insurance

Two Martin Luther King Jr. Drive

Atlanta, GA 30334

Ted [email protected]

(919) 733-5060

North Carolina Department of

InsuranceP.O. Box 26387

Raleigh, NC 27611

AICP GULF STATES CHAPTER 2013 EDUCATION DAY Atlanta, Georgia Market Conduct & Complaint Handling...

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