Standardizing Codes

When brokers store home and auto policy information from multiple customers in a database, the code for one endorsement can differ among clients, if an insurer uses its own custom code rather than the same industry-standard code that other insurers use.

Within the property and casualty insurance industry, Centre for Study of Insurance Operations (CSIO) data standards define thousands of elements of an insurance policy, including coverages, endorsements and discounts. By assigning each one a unique code, carrier and broker computer systems can exchange data.

Catherine Smola, president and chief executive officer, Centre for Study of Insurance Operations (CSIO)

But sometimes carriers introduce a code that nobody else uses. These codes, known as Z-codes, can often create more work for brokers, whose broker management systems (BMSs) are typically programmed only with the standardized codes. In some cases, a carrier uses a Z-code even when a standard code exists, effectively creating a code that duplicates one already in common use.

Read the full article in the Digital Edition of the October 2017 Canadian Underwriter.

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Catherine Smola, president and chief executive officer, Centre for Study of Insurance Operations