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ACORD - global insurance data standards

ACORD - global insurance data standards. Xchanging Insurance Market Conference November 2008 Roy Laker. Agenda. The need for Standards About ACORD Implementation of ACORD Standards Testing and Certification Member Support London Office Blog. Business Concerns .

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ACORD - global insurance data standards

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  1. ACORD- global insurance data standards Xchanging Insurance Market Conference November 2008 Roy Laker

  2. Agenda The need for Standards About ACORD Implementation of ACORD Standards Testing and Certification Member Support London Office Blog

  3. Business Concerns • Realising shareholder value and growth • Achieving greater process efficiency • Improving service to customer • Satisfying authorities • Accessing management and risk information • Managing legacy systems • Addressing the changing competitive landscape

  4. Clients’ / Risk Managers Concerns • Insurance Policy • Speed and accuracy of insurance quotes • Policy issuance • Accuracy of understanding insurance requirements • Speed of claims payment

  5. Proprietary ISLAND CEO

  6. Return on Standards Investment Efficiencies as great as 80% Project savings of 20% to 30% Reduce integration costs from 23% of new project budgets between 14% to 20% Ever increasingincremental cost. E X P E N S E CUSTOM Ever decreasing incremental cost. STANDARDS NUMBER OF IMPLEMENTATIONS Source: Celent 2003

  7. ACORD Standards • What • ACORD Insurance data, messaging and process standards • Set of processing rules and information that provide a standard way for communicating • Why • Standards enable an organisation to link with their trading partners to a common electronic method • How • By working with ACORD staff and members to develop and implement ACORD standards • When • Implementations happening today in London, the US and continental Europe

  8. ACORD • Is a member run organisation • a not-for-profit, global insurance standards organization • Members define the standards • With advice and guidance from ACORD staff • Has nearly 500 worldwide members • International organisation

  9. ACORD Worldwide Members • >230 Insurance Carriers, Reinsurers, Agents and Brokers • >200 Solution Providers • 30 Associations • Membership Schemes

  10. ACORD Standards Domains Reinsurance and Large Commercial Life Annuity and Health ACORD Standards Committee Board of Directors Property Casualty and Surety

  11. ACORD – Standards geographical usage

  12. ACORD – Standards geographical usage Life Annuity and Health

  13. ACORD – Standards geographical usage Property Casualty and Surety

  14. ACORD – Standards geographical usage Reinsurance and Large Commercial

  15. RLC Goals Summary • To achieve world wide implementation of mature ACORD RLC standards • Supporting communities of trading partners to achieve successful implementations: • London already has such a community • Activity is underway to bring together and extend European implementers into a shared community • Similar plans are being prepared for North American implementers • Ensuring effective interoperation with local national standards Implementation • To support the Acord Standards Framework • to enable enterprise level planning and management, bringing insurance into line with other industries which benefit from far greater levels of process standardisation and traceability. • To support the development of the ACORD Messaging Library (AML) • The RLC DSC continues to recommend the implementation of RLC XML for the foreseeable future • It recognises the longer-term, strategic value of a “cross-domain” library of messages i.e. AML Implementation Implementation Implementation Plan for the future

  16. THE CHALLENGE‘The nice thing about standards is that there are so many of them to choose from’ Andrew S. Tanenbaum

  17. ACORD RLC Global Roadmap

  18. RLC Implementations WorldwideLondonEuropeNorth America

  19. Market Reform – Electronic Documents

  20. UK 24% Europe 14% US & Canada 44% Central Asia & Asia Pacific 4% Rest of the World 4% Other Americas 7% Lloyd’s – A global market

  21. London Market - Plans Paper with London Messages EDI Electronic documents with London Messages EDI Electronic documents with skinny RLC Messages XML Electronic documents with fuller/fat RLC Messages XML

  22. London Implementations • London Market standardized on the use of ACORD RLC • to support its market reform activity. • 70,000 ACORD DRI messages per week • handled by the Insurers’ Market Repository. • ACORD RLC Placing message is operational • between a number of key brokers and underwriters • Adoption of the ACORD RLC Technical Account message is underway. • to support premium transactions • Xchanging (the London market centralised back office) is introducing an “ACORD for All” service • enable all London Underwriters to receive ACORD RLC messages in place of London EDI message. • All XML messages are transmitted and received using ACORD Messaging Services

  23. Insurers Market Repository ECF Volumes • All Brokers ‘live’ • 27 Companies ‘live’ • 4 Companies in ‘Implementation process’ • 5 Companies having demonstrations/in ‘start up’ mode • All Underwriting Syndicates Live • 2007 Average no of ECF claims 4000pm • 2008 Average no of ECF claims 14500pm

  24. Insurers Market Repository EPA volumes • Currently 150 + Brokers ‘live’ • Schedule of ‘planned’ enhancements to EPA functionality during 2008 and 2009 • 135,623 premium transactions submitted by brokers electronically during 2007 • 74% of volume submitted electronically 1st to 3rd Qtr 2008 • Planned transactions by year end 98+% of volume

  25. RLC in Europe • Over 50,000 Accounting Messages p.a. • Some Claims • Priority is: • Accounting, settlement and claims (not Placing today) • Greater volumes • Brokers want: • More Reinsurers • More Insurers • Reinsurers want: • More Brokers • Ceding Companies

  26. RLC in Europe - Rueschlikon • Agreement signed in Vienna on 17th September 2008 • ACORD RLC premium, claims and DRI • Running messages over the SWIFT network • Partnership between: • SWIFT, ACORD, Swiss Re, Munich Re, SCOR, Aon, Benfield and Willis • A shared industry solution for electronic data transmission

  27. Other key Points • Full pricing proposal for pilot in November • Validation to be included after June 2009 • Future phases include: • Life Reinsurance • Pairing • Other ACORD standards • Settlement netting • Risk exposure data

  28. North America • USA • XML is the Standard in the US • Moving away from EDI but still being supported • E-Reinsure over 500,000 Placing messages to date • Need to increase the number of Reinsurance implementers and add Ceding companies as message senders • Bermuda • Placing starting to happen from London • Accounting implementations • Canada • Examining the use of claim movement message for advices and implementing accounting messages

  29. Conclusion • ACORD RLC XML standard is mature • ACORD RLC standards are a proven solution • driving benefits today • Vendor partners have matured • significantly reduced the barriers to entry • reduced the ongoing operational costs • Focus is on implementation with more trading partners

  30. STP • Lower Cost • Automated Workflow • Integrated Systems • Reduce Errors • Less Translation • Better Service • More Consistency • Higher Quality • More Transparency • Speed to Market • Ease of Doing Business

  31. Exposure Data

  32. Exposures and binders • ACORD working group re-validating 2003 Property standard • Will also promote usage • Verification of Exposure data this year • Some pilots of binders this year • Lloyd’s franchise also considering ACORD standard as part of regulation

  33. Industry Value Chain

  34. Testing and Certification Facility

  35. Test first with ACORD Testing and Certification Facility (TCF) YOU BUSINESS PARTNER • Connectivity • Security • Standards compliance And get trouble-free implementation with partners… YOU BUSINESS PARTNER

  36. Testing & Certification • Over 7,000 messages sent/received • All London initiatives supported: • ECF / A&S repository • ELPAN2 / EBOT • Electronic Placing (direct and via hubs) • DRI Large Files (20mb+) now supported • 1.2Gb files transferred in testing • Increasing demand from clients; implementors encouraged to support ASAP. • Digital Signature testing supported • Why struggle with counter-parties? • TCF provides a neutral, authoritative overview which proves your system’s capabilities • Proven to reduce mean time between bug fixes • Avoids you performing diagnostic work / consultancy for your competitors

  37. Member Support

  38. ACORD Update • London Office Blog www.acordlondon.org

  39. Londonoffice: LUC - Suite 1/3 3 Minster Court Mincing Lane London EC3R 7DD UK +44 207 617 6400 World Headquarters: Two Blue Hill Plaza 3rd Floor Pearl River, NY 10965 USA +1 845 620 1700 SLIDE 40

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