ACORD - XIS Conference

Report
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

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
Clients’ / Risk Managers Concerns

Insurance Policy
 Speed and accuracy of insurance
quotes
 Policy issuance


Accuracy of understanding insurance
requirements
Speed of claims payment
CEO
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 increasing
incremental cost.
E
X
P
E
N
S
E
Ever decreasing
incremental cost.
NUMBER OF IMPLEMENTATIONS
Source: Celent 2003
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
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
ACORD Worldwide Members

>230 Insurance Carriers, Reinsurers,
Agents and Brokers

>200 Solution Providers

30 Associations

Membership Schemes
ACORD Standards Domains
Life Annuity and Health
Reinsurance and Large Commercial
ACORD Standards
Committee
Property Casualty and Surety
Board of Directors
ACORD – Standards geographical usage
ACORD – Standards geographical usage
Life Annuity and Health
ACORD – Standards geographical usage
Property Casualty and Surety
ACORD – Standards geographical usage
Reinsurance and Large Commercial
RLC Goals Summary
To achieve world wide implementation of mature ACORD RLC
standards
Implementation

 Supporting communities of trading partners to achieve successful
implementations:
London already has such a community
Activity is underway to bring together and extend European
Implementation
Implementation
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.

Plan for the future
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
THE CHALLENGE
‘The nice thing about
standards is that
there are so many of
them to choose
from’
Andrew S. Tanenbaum
ACORD RLC Global Roadmap
Implementation Projects
End Vision
1-way skinny (core) message
2-way skinny (core) message
1-way full message
2-way full message
1-way skinny (core) message
2-way skinny (core) message
1-way full message
2-way full message
With electronic documents - DRI
With electronic documents - DRI
e-Accounting & Settlement
New business & renewals
Endorsements
Exposure Data
1-way full message
New business & renewals
Endorsements
Exposure Data
e-Placing
1-way skinny (core) message
2-way skinny (core) message
2-way full message
e-Claims
Business Processes
New business & renewals
Endorsements
Placing Completion
With electronic documents - DRI
Establish the debt
(Technical Account message)
Initiate Settlement
(Financial Account message)
Premium
Premium
Claims
Claims
Balance Accounts
Balance Accounts
Messaging with technical acknowledgement
Messaging with technical acknowledgement
Messaging with business acknowledgement
Further Advice
(Claim Movement Message)
Skinny (claims core) messaging
Skinny (claims core) messaging
Full messaging
Payment Request
(Claim Movement Request)
Skinny (claims core) messaging
Full messaging
With electronic documents - DRI
With electronic documents - DRI
With electronic documents - DRI
Claim Bordereau
Claim Bordereau
Claim Bordereau
Infrastructure
Supporting
Technology
Supporting Technology
Symmetric Asynchronous: Inbox, Post
ACORD Web Services Profile
Asynchronous Asymmetric:
Inbox/Outbox, Post/Retrieve
Symmetric Asynchronous: Inbox, Post
Synchronous: Call
Synchronous: Call
Connectivity Test: Ping
Connectivity Test: Ping
Mime Part url
Ensure regulatory
compliance and best
practice are designed in
from the outset by
improving data availability
and reporting ability
Standardised processes
and technologies
First Notification
(Claim Movement Message)
Asynchronous Asymmetric:
Inbox/Outbox, Post/Retrieve
Improve cost effectiveness
of processes and reduce
frictional costs
With electronic documents - DRI
With electronic documents - DRI
ACORD Messaging Services
Make the RLC community
easy to do business with,
creating greater
opportunity for
globalisation and entering
new markets.
Promote international,
global nature of ACORD
RLC messages
Messaging with business acknowledgement
Full messaging
Improve Client Service
Exposure Data
Firm Order
Quote
Mime Part url
Draft 6 – Work In Progress
Flexible to allow for
bespoke nature of business
Enables remote working,
but does not impose it
Promote ACORD XML
messages to all players in
the insurance value chain
requiring full business
process/feedback loop
Scalable infrastructure
DRI
Using ACORD Web Services
Profile
Notify; Down Load: Request, Response
Upload
Search: Request, Response;
Download: Request, Response
Electronic documents using
ACORD DRI messages
All processes fully automated
All processes traceable
Large Documents
RLC Implementations
Worldwide
London
Europe
North America
Market Reform – Electronic Documents
Lloyd’s – A global market
UK
24%
US & Canada
44%
Europe
14%
Central Asia
& Asia Pacific
4%
Rest of
the World
4%
Other
Americas
7%
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
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
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
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
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
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
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
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
Conclusion

ACORD RLC XML standard is mature

ACORD RLC standards are a proven solution

Vendor partners have matured
 driving benefits today
 significantly reduced the barriers to entry
 reduced the ongoing operational costs

Focus is on implementation with more trading
partners
Exposure Data
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
Industry Value Chain
Financial
Markets
Reinsurance
broker
Original
insured
Reinsurer
Insurer
Agent
Surplus/
specialty
lines insurer
MGA
Surplus/
specialty
lines broker
Risk
Manager
Reinsurance
broker
Retrcessionai
rre
Retrcessionai
rre
Retrocession
airre
Testing and
Certification Facility
Test first with ACORD Testing and Certification Facility (TCF)
YOU
•Connectivity
•Security
•Standards compliance
BUSINESS PARTNER
And get trouble-free implementation with partners…
YOU
BUSINESS PARTNER
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
Member Support
ACORD Update

London Office Blog www.acordlondon.org
World Headquarters:
Two Blue Hill Plaza
3rd Floor
Pearl River, NY 10965 USA
+1 845 620 1700
London office:
LUC - Suite 1/3
3 Minster Court
Mincing Lane
London EC3R 7DD UK
+44 207 617 6400

similar documents