Thirty-seven states and Washington D.C. currently have liability reporting requirements, but activity in the mandatory liability reporting landscape suggests that more states will add reporting requirements.
Over the past several years, more and more states have introduced mandatory liability reporting or updated existing reporting programs. In 2016, five states implemented changes to their reporting requirements. In 2019, 11 states made changes.
While the pace slowed somewhat in 2020 due to the COVID-19 pandemic, carriers can expect further states to bring these programs online in 2021.
Knowing about changes states implement is only one of several challenges that insurance carriers face with mandatory reporting. The timing of these changing requirements can be unpredictable.
Legislation is often enacted with a very short compliance timeline, often just 30 days. Because the timing and changes themselves are often unpredictable, it can be difficult to plan resources appropriately.
But there’s no need for you to manage regulatory compliance on your own. Outsourcing your liability reporting could help ease the load and hedge against potential disruption in services for your customers.
