Overview

With 48 states enacting laws to combat the problem of uninsured motorists, many agencies are turning to third-party vendors for assistance with identifying the uninsured population. HDI has been providing agencies with insurance verification services since the early 2000s, as the original developer and program administrator for Alabama’s Mandatory Liability Insurance program, with extensive experience in insurance data matching—processing millions of queries quickly and accurately—and implementing insurance verification programs across the nation. The ability to meet industry standards and employ cutting-edge technologies allows states to seek less obtrusive and more efficient ways to enforce financial responsibility laws. 

Whether it’s helping states currently running their programs in-house or states using other third-party vendors who need a more effective solution, HDI provides a more accurate and efficient solution for insurance verification services. A few keys to HDI’s success with insurance verification include database matching, a unique hybrid approach, ongoing verification efforts and strict security protocols. There are five major methodologies for insurance verification programs. These methodologies are utilized by states nationwide.

Car key laying on top of certificate of motor insurance and insurance policy schedule

Five Methodologies for Insurance Verification

  • Transactional Reporting

  • Random Sampling

  • IICMVA (Insurance Industry Committee on Motor Vehicle Administration) Web Services

  • Database Matching

  • HDI’s Hybrid Model Approach

Which Methodology is Right for Your Agency?

The five methodologies can be broken into three categories: reactive, event-based and proactive approaches.

Reactive Approach

Transactional reporting and random sampling are both examples of reactive approaches to insurance verification. Insurance companies simply report to states any new policies, policy cancellations and expired polices. Alternatively, states can also randomly send notices to registered vehicle owners requesting they provide proof of insurance.

Event-Based Approach

This approach involves utilizing a one-time insurance book of business submission and web services to communicate directly with insurance companies. Upon receipt of a web service call, an insurer can confirm if that vehicle is covered by insurance.

Proactive Approach

Database matching and HDI’s Hybrid approaches are proactive in nature. Database matching involves using HDI’s proprietary fuzzy matching algorithms to continually match against insurance company books of business submissions with motor vehicle registration database information. HDI’s hybrid model uses both proactive and event-based approaches for verification. Utilizing both, HDI matches the book of business to the motor vehicle registration database and uses an IICMVA web service query to a specific insurance company allowing for a more accurate and timely response.

DRIVe offers all Approaches

This base system can accurately identify those who are uninsured and give them the opportunity to resolve their insurance status. The system can then report lingering offenders to the state for further action.

HDI’s active participations in national organizations such as the American Association of Motor Vehicle Administrators (AAMVA) and IICMVA keep HDI at the forefront of new and innovative program strategies.

Read more about the HDI’s Customizable Solutions for Insurance Verification and state success stories.

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