NAIC Launches Electronic Filing System To Streamline State Approval Process For Insurance Companies

The National Association of Insurance Commissioners (NAIC) has introduced SERFF (System for Electronic Rates & Forms Filings), a nationwide computer initiative to help streamline the traditionally cumbersome process of obtaining state approvals by allowing insurance companies to submit regulatory filings electronically.

"SERFF dramatically changes the interface between insurance companies and insurance regulators," said Glenn Pomeroy, NAIC president. "The result will be an enormous enhancement to productivity in an industry that touches millions of Americans every day. SERFF is a key part of the technology revolution unfolding in the insurance industry, which promises to improve both the service and the variety of products customers receive."

Developed by IES Midwest, Inc. using Lotus Notes software, SERFF will enable companies to avoid the pitfalls of the traditional process of filing paper regulatory forms, which can take up to 18 months from start to finish. Problems such as lost paperwork, missing information, staff changes, and many other potential snafus will be replaced by SERFF, tracking every step of the process electronically, and concluding it in a matter of days.

"The insurance industry is one of the most regulated industries in the country," said Robin Clover, associate director of Fireman's Fund. "Negotiating the different approval processes of 51 individual jurisdictions is extremely laborious and expensive. SERFF will help minimize the cost of filings by eliminating paper from the process, cutting out mailing costs, time in transit, and making the final submission process as easy as touching a button."

This system is the result of a cooperative initiative between NAIC and the insurance industry, who together recognized the need to expedite and standardize the filing process. The SERFF Board, a partnership of insurance companies and state regulators, directs the NAIC in managing the SERFF project.

SERFF allows insurance companies to submit all their filings to states electronically over the Internet or a private data network. It uses Lotus Notes and Domino as a messaging infrastructure and a document management and workflow tool.

Some 16 states have already signed up for SERFF, including California, Florida, Missouri, New Jersey and Washington. Nearly 225 major companies are participating, including Fireman's Fund, Fortis, Guardian Insurance, Humana, J.C. Penney Insurance, Metropolitan Life, Nationwide Insurance, New York Life, Sun Life Assurance Company of Canada, The Hartford and TransAmerica Life Insurance.