By: Bridget Kieras. Senior Manager II, National Association of Insurance Commissioners (NAIC)
The NAIC, state regulators and insurance compliance professionals are working together to improve the efficiency and effectiveness of the insurance product filing and review process via the SERFF Modernization project.
The System for Electronic Rate and Form Filing (SERFF), developed by the National Association of Insurance Commissioners (NAIC), is a web-based platform that facilitates the submission of insurance product filings for approval by state insurance regulators. SERFF is a mission-critical application for insurance departments and insurance companies. It’s used across all lines of insurance and is mandated for use in at least one line of business in 35 jurisdictions.
In 2019, NAIC members initiated a multi-year project to modernize SERFF. The current application enjoys high user satisfaction and works well for its purpose. Still, regulators and NAIC leadership recognized that advancements in technology and the changing insurance market meant it was time for a significant step forward for the SERFF platform.
Three key drivers shaped the project: Improve operational efficiency for regulators and insurers, provide tools to assist with reviewing complex and innovative products, and build a platform on modern technology that could continue to grow and evolve. The new platform will feature an improved user interface, modernized technical architecture, enhanced data management for easier reporting and analysis, and an API layer for easier integration with other partners and tools.
After a mobilization and pilot phase to choose technologies, the development of the new platform kicked off in early 2022. The technologies selected for the project include components offered by cloud provider Amazon Web Services (AWS) and Appian, a leading low-code platform. Two phases of the project have been completed to date. The first improved the search feature in the existing platform while building a foundational component for the future. SERFF Search now performs 15 times faster than previously and includes a robust document search. The project's second phase introduced seven Tableau dashboards —five for regulators and two for industry — to address the need for improved reporting and analytics.
The third and most significant phase of the project is the reinvention of the web application. The new and modernized SERFF platform will be introduced across several releases, starting with functionality for the Interstate Compact later this year. The first release will also move all user administration to a self-service module, reducing wait time for end users needing new or updated access.
New features will be introduced across the project releases and will bring significant benefits to both regulators and insurers. Some of the key features in the first release of the new platform include:
Ability to configure state-specific business rules for field validations, documentation requirements, and internal processes.
Calculation of state filing fees.
Verification of proper licensure for the product submission.
Robust search and reporting capabilities.
A pre-submission Compliance Check for industry filers to decrease preventable errors.
A task management module to help users manage their workloads by priority and due dates.
While the new platform increases support for state-specific rules and processes, it also provides an intuitive interface aimed at making these differences easier for filers to navigate, increasing the accuracy and compliance of submissions and reducing turnaround in responding to compliance issues.
“The Compact is thrilled to be the first to deploy the modernized SERFF with its built-in support for cleaner filings upon submission and more robust task management for our team,” said Karen Schutter, Executive Director of the Insurance Compact.
The new platform will also introduce artificial intelligence (AI) tools to assist with the filing preparation and review process. The first release introduces an AI skill to improve the accuracy of form submissions by identifying two key data elements about each form – the form number and form type. AI in the SERFF platform will follow the tenet of “human in the loop” — meaning that the AI doesn’t make decisions or act without the ability of a human to intervene.
AI in SERFF will be an exciting development and it is expected to have a significant and positive impact on the filing and review process. There are many use cases for AI in SERFF, with the most promising being the ability to tie state rules to filing components via checklists. Using AI, regulators can train the system to find clauses and other filing requirements and to evaluate the submission’s fit with their state requirements. As the AI learns and improves, it can begin to offer pre-submission guidance to insurers when their filing may not be compliant.
These are a few of the exciting changes coming with the SERFF Modernization, but the project is not just a technology upgrade. It is a strategic initiative for the NAIC that aligns with the evolving needs of the insurance industry. The project represents a commitment to continuous improvement and innovation. A hallmark of the project has been collaboration and stakeholder engagement. Throughout the modernization process, the NAIC is actively seeking input and feedback from a wide range of stakeholders, including insurance companies, state regulators, consumer advocates, and technology providers.
Project staff have hosted webinars, conducted state and industry workshops, presented at conferences, and done site visits with both Departments of Insurance and insurance companies. The team is already preparing for the next major deployment, which will onboard Life, Annuity, and Credit filings to the new platform. Business analysts from the team are engaged with all jurisdictions to gather their state-specific requirements, help them evaluate opportunities for process improvement, and train them on new features.
This collaborative approach ensures that the new platform will meet the diverse needs of all users and will contribute to the transparency and accountability of the insurance filing and review process.
The SERFF modernization project is a significant step toward improving the efficiency and effectiveness of the insurance filing and review process. It’s expected to expedite filings, reduce errors, and streamline the review process.
“SERFF exemplifies NAIC’s commitment to technical excellence, leveraging a low-code, AI-enriched platform to streamline regulatory processes. As one of the most advanced regulatory tools in the U.S., it sets a new standard for the industry,” said Scott Morris, Chief Technical Officer of the NAIC.
The SERFF platform will be positioned to grow and adapt to evolving user needs in the future. SERFF users and other stakeholders with questions or with interest in contributing to the project can email serffmodernizationquestions@naic.org.
About the Author: Bridget has worked in software development at the National Association of Insurance Commissioners for nearly 30 years, focusing on business analysis, quality assurance, project and product management. Bridget has led several agile development projects, including a multi-year project to build SERFF’s plan management component for health insurance exchanges. She is now the business lead for the three-year SERFF Modernization project.
In addition to her work experience, Bridget is active in several professional organizations. She has served in leadership positions for the Kansas City chapter of the International Institute of Business Analysis, the Kansas City Quality Assurance Association, and the Kansas City chapter of Women in Agile. She is a Certified Product Manager and a Certified SAFe Agilist. Bridget is also an active volunteer and former board member for Melissa’s Second Chances, an animal rescue in Shawnee, KS. Bridget earned her Bachelor's in Business Administration from the Henry W. Bloch School of Management at the University of Missouri–Kansas City.