Keeping up to date with rating bureau content has always been an onerous task for P/C insurance carriers, particularly small to midsize carriers with limited operational resources. According to research by Novarica, 80 percent of carriers are not current with ISO filings, with most lagging anywhere from two to five years behind. This insight speaks volumes about the challenges of remaining compliant, even though the updates serve a strategic purpose and should be treated as a priority.
Being outdated by multiple versions of bureau updates can be detrimental to both insurers and policyholders. Insurers rely on up-to-date information from rating bureaus such as NCCI, ISO and AAIS to ensure that pricing is both competitive and risk appropriate. Aside from its importance to underwriters and actuaries, staying current can also streamline product updates and benefit the insurer’s bottom line. However, insurers face escalating internal and external challenges with properly navigating the increasingly complex regulatory landscape and efficiently handling the adoption of the circulars that would positively impact their business.