openIDL Gets COVID-19 Test Carriers & Regulators Back POC on BI Data Call

openIDL Gets COVID-19 Test: Carriers & Regulators Back POC on BI Data Call

 

When the COVID-19 pandemic hit the United States, regulators quickly realized two problems. They would need to collect massive amounts of data and issue multiple data calls, particularly around business interruption, and there was no secure, efficient way to gather this data to truly understand the impact COVID-19 was having on the P&C market. With business interruption claims growing, a quick, effective solution was needed.

Enter the open Insurance Data Link, or openIDL…the insurance industry’s first and only data and information-sharing network supporting regulatory reporting. Its revolutionary data management design enables permissioned-based sharing, while holding private the underlying proprietary data insurers see as a competitive advantage. 

openIDL uses the latest technology for data security, access controls and transparent audit trails. It not only reduces the cost of regulatory reporting for carriers, but also provides a standardized data repository for analytics and connection points for third parties to deliver new applications, data, and more. AAIS built openIDL as an open-source platform, meaning the technology is not proprietary and parties across the insurance ecosystem are encouraged to participate in its development, building new applications on top of 
the openIDL foundation. Open source is a critical success factor to cost-effective technology enhancements. It enables carriers and insurtech leaders to contribute to the long-term success of openIDL, working together to make the tool a success...critical during an unprecedented event like COVID-19.

Several State Departments of Insurance realized that openIDL was a natural solution to a multi-state business interruption data call. In June, insurance commissioners from numerous states agreed to conduct a “Proof of Concept” using openIDL for a COVID-19 business interruption data call. AAIS Members, inlcudingThe Hartford and Travelers, are participating in the “Proof of Concept,” providing a strong insurer base from which to build the openIDL data call. 

The openIDL was chosen for this “Proof of Concept” because of its distributed ledger technology…a shared, immutable ledger, or tracker, of transactions that can’t be altered. Insurers could feel confident that the data they include in openIDL is safe and protected from manipulation…while regulators know the data they’re receiving is timely and accurate. The openIDL is also useful for a COVID-19 data call because of its sophisticated analytic capabilities, delivering the in-depth analysis regulators need to quickly understand the impact of the pandemic and the appropriate response.

As disruptive and transformative events occur, the openIDL use cases will continue to grow. In 2020 alone, widespread civil protests and the predicted active hurricane season will bring the need for more data collection, collaboration, reporting and analysis. As the world continues to evolve, the opportunities for openIDL to transform the insurance industry will only grow.

 

AAIS Pandemic Resource Center

At AAIS, we’re committed to helping insurance organizations manage the COVID-19 pandemic by collecting and organizing the information and updates you need to know. In the AAIS Pandemic Resource Center, you’ll find Department of Insurance (DOI) communications, as well as regulatory and legislative updates from trade associations pertaining to COVID-19’s impact on the insurance industry. Visit the COVID-19 Pandemic Resource Center.