Texas insurance regulators have responded to insurer requests for revisions to its standards for catastrophe data calls and is seeking input on the proposed changes.
The Texas Department of Insurance said following Hurricanes Ike and Harvey, insurers participating in data calls resulting from those hurricanes urged TDI to use the standard National Association of Insurance Commissioners (NAIC) catastrophe data call or develop a standardized catastrophe data call that insurers can program into their systems well in advance of any catastrophe.
TDI has now created a draft concept based on NAIC call data that includes Texas-specific modifications and incorporates lessons learned from Hurricane Harvey, the department said. The agency now is seeking comments on the draft concept, particularly regarding Texas specific data elements and the ability of insurance companies to provide the information quickly after a disaster.
Required to respond to the data calls are all insurance companies, including surplus lines companies and farm mutual companies, that either:
- Wrote more than $1 million in Texas direct written premium in total for the specified lines in the prior calendar year; or
- Are expected to write more than $1 million in Texas direct written premium in the catastrophe year and are specifically required by TDI to report. Insurers required by TDI to report are only required to report data for residential property and private passenger automobile.
Specified lines of insurance used to determine the $1 million reporting threshold are:
|Allied lines||Inland marine|
|Multiple peril crop||Earthquake|
|Federal flood||Private passenger auto physical damage|
|Private crop||Commercial auto physical damage|
|Farmowners||Boiler and machinery|
|Homeowners||Aggregate write-ins for other lines|
|Commercial multiple peril (non-liability)|
Lines of insurance excluded from the data call include workers’ compensation, credit, fidelity, surety, warranty, and any type of liability insurance (for example, medical malpractice, general liability, products liability, and automobile liability). In addition, surplus lines insurers will not be required to report any data for residential property or private passenger automobile insurance.
Companies will not be able to alter the reporting form in any way. Except for the area where companies must enter their information and data, the reporting form will be locked and protected.
The reporting form will contain edits or data flags to ensure the data is complete and passes data reasonability checks. TDI will publish all applicable edits and data flags before insurers are required to report. Each submission must pass all edits and data flags. TDI will not accept any submissions that fail any edit or data flag.
To submit comments on the TDI proposal, email DataCall@tdi.texas.gov by August 27, 2018.
The proposed data call draft concept can be accessed via the TDI website at: http://www.tdi.texas.gov/news/2018/documents/tdi-cat-data-call-concepts.pdf.
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