Company Unique Product Codes

Company Unique Codes - An Agent View

ACORD receives emails from its members and the industry regarding specific issues. We'll be addressing these issues along with member perspectives. This week, the issue of company unique codes came in from an agent member.

Background
It's not uncommon today for parties creating data to use non-ACORD (non-standard) code values to meet their own business needs. The result, however, creates implementation issues for the receiving party. Recipients then need to determine how best to manage the non-standard code(s). To help resolve these issues, ACORD formed a working group to analyze non-standard codes in search of methods that resolve company unique code usage.

The Issue
"We are a small agency but we represent many insurance companies. We have found many conflicting uses of coverage download codes, sometimes even with the supposedly "standard" codes. We believe that a greater number of coverages must be included in the ACORD standards, and beyond that, companies should be required to register their company specific codes with ACORD and check for code availability before starting to use new codes.

This is a serious errors & omissions problem for agencies when one company's downloaded code ends up showing another company's coverage description - appearing that the client has a coverage which they do not have.

Is there anything that can be done?

Wendy P. Lawlor, CIC
The Burns Agency, Insurance Services

Response
Marcia Berner, Program Director Property & Casualty/Surety, ACORD

Company unique codes are a problem that we recognize and we are working on today. A working group was formed to address the issue and we recommend that everyone - agents, companies, solution providers - get involved. We can only solve the problem when we work together.

So far, the working group has received codes from more than 70 companies and the group is evaluating each company's codes by line of business. It's certainly a huge undertaking, and we appreciate the time the working group members have invested and will invest in future. The goal is to identify which coverages, credits/surcharges, etc. are common, so those codes can be added to the standard.

There are going to be exceptions. For example, those codes that are truly unique will most likely stay that way. In cases where two or more carriers use the same code for different coverages, we will need to address that on a case by case basis and consult with both parties to initiate a change for either or both.

This isn't a fast process by any means but work is underway. The more help and input we get, the better and faster we can get the job done so the issue will be solved for everyone. Vendor participation is also important, as each vendor has an existing process for certification of carrier downloads. Two solution providers have joined the working group, and both are engaged in the analysis phase.

One of the benefits that this process will provide is the education of our members with regard to how to employ the AL3 standards. We have found cases where a coverage code was created when an alternative mapping exists within the AL3 standard. ACORD plans to provide examples of recommended implementations in these circumstances. Utilizing the standards in a consistent manner will ultimately benefit the agents and provide for cleaner, more consistent downloads for all.

As for registering codes, it's certainly an interesting idea and one that would need further investigation and discussion across the industry. It would require every carrier to participate in the effort. Changes such as these normally come from the industry to ACORD, so it's a good idea to talk with your agency management system user group and let them know about the idea. For now, we recommend that everyone get involved with the working group, and make sure your issues are known. You can take part by following the information to the right.