RE: Claims-Database Integration into an All-Claims Database - From ISO

April 18, 2000

TO: Home Office Contacts - ISO Claim Search~ 

We said we'd do it. We did it. We have completed what the industry has long considered the single most important action against insurance fraud: we have physically integrated the industry's three separate major claims databases into one unified database for all claims - the new ISO Claim Search system. 

Casualty claims from the former INDEX System, property claims from the former Property Insurance Loss Register ~ILR), and the auto claims databases previously administered by the National Insurance Crime Bureau are now one database, one system. 

The ISO Claim Search system already holds 140 million claims, and it's growing at the rate of three million reports a month. The comprehensiveness of the database - measured by the number of insurance lines it services and the number of claims it contains - makes the ISO Claim Search system far more effective in identifying patterns of fraud than the three separate and incompatible databases that ISO Claim Search replaces. 

When the idea of an all-claims database shifted in 1994 from being a glimmer in the eyes of claims investigators to emerge as a seriously studied industry option, no less an expert than IBM Corp. put the cost at $40-$50 million. In reality, ISO has completed the task for one fourth of that cost in less than two years from the date ISO began managing all the component databases.  

Since April 1999, SIUs have been able to conduct cross-line searches across all data using the Investigations Query Tool through the ISO Claim Search Online system. And since June 1999, investigators have also been able to perform cross-line searches using ISO Claim Search on ISOnet, SO's Internet information-delivery platform. 

Now, as a result of the component databases' physical integration, the industry is on the verge of an era when data across multiple insurance lines data is quickly, easily, and routinely available to every one of your claims professionals. That significant advance in your ability to screen claims will further enhance your ability to spot potential fraud early for referral to the SIU. 

Now there's just one task left to complete - adopting ISO's Universal Format - to give all of your claims professionals access to all the ISO Claim Search system offers.  When you report data in Claims-Database Integration  Universal Format, your claims professionals can receive reports of all matching ISO Claim Search information in a single, easy to read format. Your staff can more easily and reliably spot potential fraud when they receive consistent, integrated reports across insurance lines instead of reports in a different format for each of the casualty, property, and auto segments of the database. 

The Universal Format is available in three ways: 

1) on the ISO website - iso.com - for easy access. You can download it from theWhat 's  New area of the site and review it. [To download the document, you will need this user   name: Universal and customer password: ForMat2000.] 

2) by e-mail to your address. You can send an e-mail to njsupporty@iso.com with your name, title, company, telephone and e-mail address to request that a copy be sent to you. 

3) or you may request a hard copy by calling ISO Claim Search Support at1-800-399-2585. 

Then you can get ready to make the most of the ISO Claim Search system's integration by adjusting your systems to promptly begin reporting claims data using the Universal Format for all claims. The Universal Format simplifies your claims reporting by replacing the three separate formats that have been used for ISO Claim Search's three database segments.  

The ISO Claim Search system will begin accepting claim-data submissions in Universal Format on July I.  

I urge you to be among the first to realize the full benefits that the ISO ClaimSearch system's advances make possible. You'll want to act promptly, so you'll be ready to adopt the Universal Format as early as you possibly can.

The creation of the ISO ClaimSearch all-claims system is an all-industry achievement of true significance. It's an achievement made possible by visionary and purposeful industry leadership, including that provided by the National Insurance Crime Bureau, its Board of Governors, and the ISO Claims Council, which comprises senior claims professionals. Claims professionals and investigators everywhere have every cause to celebrate the realization of the ISC ClaimSearch system just as enthusiastically as we are at ISO. 

We can help you achieve the full benefits of the ISO ClaimSearch system. Together we can improve the quality of the all-claims system as an industry resource - and improve the information your claims staff depends on to combat fraud and pay legitimate claims quickly. If you have questions or would like to discuss the ISO ClaimSearch system and development program, please give me a call at (212) 558-2020 or call the ISO ClaimSearch Customer Support office at 1-800-399-2585. We look forward to working with you.

Sincerely,  

Richard P. Boehning Senior Vice President 

AMERICAN INSURANCE SERVICES GROUP. A UNIT OF INSURANCE SERVICESINSURANCE SERVICES OFFICE, INC.

       NEWYORK. NY10004-1898 (212)558-2000 FAX(212)558-2100

              RAHWAY, NJ 07065 (732) 388-0332 FAX (732) 388-0537