RFI - questions and answers.pdf

Answers to ques�ons from vendor for RFI -Subscrip�on Services to Obtain Provide Insurance Symbol Group Data needed for Quality Adjustment:

1. The �tle and purpose of the RFI refer to insurance symbols, but the scope and background suggest that this is related more to overall insurance prices, not just insurance symbols, which are a specific component of the overall price. Is the primary focus just on insurance symbols, or price overall?

a. Both. Changes in the symbol ra�ngs due to changes in risk factors associated with specific vehicles are needed to quality adjust comp and collision components of policy premium prices.

2. There are symbols that are developed by vendors, and there are also individual insurance companies that develop their own symbols? Is the DOL interested in symbols from vendors, insurance companies, or both?

a. Contractors that have detailed records of insurance premiums collected and losses paid.

Contractor shall have records for commercial lines represen�ng at least 50 percent of the en�re industry's premium volume. For personal lines, the data represents at least 20 percent of the industry's premiums.

3. In the scope sec�on, one of the items is “Data Compila�ons by Line of Insurance.” What specific data is the DOL interested in compiling?

a. See response below for specific data.

4. In the scope sec�on, two items listed are “Personal Lines Customized Reports and Analyses” and “Commercial Lines Customized Reports and Analyses.” Are these ad hoc reports that would be produced as needed by the DOL? Do you have examples of the types of customized reports and analyses you would be looking for?

a. These are customized annual reports based on a vehicle sample used by DOL and contain the following informa�on:

• Model Year

• Make

• Model

• Body Type

• VIN

• Other

• State

• Symbol Group Comp

• Symbol Group Coll

• Price New Group

• Symbol Change – Comprehensive (compared to previous model year)

• Symbol Change – Collision (compared to previous model year)

• Price New Change – Comprehensive (compared to previous model year)

• Price New Change – Collision (compared to previous model year)

• Risk Change – Comprehensive (compared to previous model year)

• Risk Change – Collision (compared to previous model year)

• Review Indicator

• Add/Change Indicator

5. The scope includes a “Customized Loss Reserving Tool.” Would this tool be for the DOL to complete loss reserving analyses, or would the DOL be looking for the vendor to complete loss reserve analyses?

a. This tool would be used for DOL analysis.

6. What types of benchmarking data for claims professionals would the DOL be looking for? How would this benchmarking data be reflected in price change analyses?

a. The benchmarking data is noted in the customized annual report informa�on above and is necessary to account for quality and price changes from the base period as well as when item (i.e. vehicle) subs�tu�on occurs.