acord 2006. acord in the london insurance market march 2007
TRANSCRIPT
ACORD 2006.
ACORD in the London Insurance
Market
March 2007
SLIDE 2
Agenda
About ACORD Current Activities Future Plans
SLIDE 3
Who is ACORD?
Independent and Objective Trade Association Serving the Insurance Industry since
1970 Facilitating Industry-Driven Standards for
Brokers, Carriers, Solution Providers, Market Associations
Not For-Profit Corporation Anti-Trust protected forum for
developing Standards and promoting implementation
Develops, Manages, and Promotes Standards
SLIDE 4
Why Standards
Sharing data Simplified processes Straight through processing Reduce the cost of processing Connect to trading partners Enhances the quality of data For Global trading/processing
SLIDE 5
The Business Wish List Competitive quotes Improve claims ratio Increase access to Markets Process efficiency Open all hours Satisfy Regulators more easily Clarity of Contract Understanding exposure Globalisation Automation Intra Office communication Legacy Management Manage claims exposure and R/I recoveries Efficient reporting
SLIDE 6
The Need for Standards Competitive quotes Improve claims ratio Increase access to Markets Process efficiency Open all hours Satisfy Regulators more easily Clarity of Contract Understanding exposure Globalisation Automation Intra Office communication Legacy Management Manage claims exposure and R/I recoveries Efficient reporting
Electronic movement of informationand the
Need for Standards
SLIDE 7
SLIDE 8
The ACORD Vision The Global Insurance/Reinsurance Industry
has one, common set of Business Data Definitions
All solutions implemented are built upon these Standards
SLIDE 9
ACORD Governance 3 Standard Domains
Non Life Reinsurance Large Commercial Property Casualty &Surety
Life Life and Annuity
ACORD Board Advisory Boards
ACORD Standards Committee Domain Steering Committee
Business Technical Implementation
ACORD staff Working groups
SLIDE 10
ACORD Governance
ACORD Board of Directors
ACORD Standards Committee
Non-Life
Life
ReinsuranceLarge Commercial
Steering Committee
Personal, Commercial & Surety
Steering Committee
Life, Annuity, Health& Reinsurance
Steering Commmittee
BusinessRequirements
TechnicalRequirements
ImplementationAdvocacy
TechnicalRequirements
ImplementationAdvocacy
BusinessRequirements
TechnicalRequirements
ImplementationAdvocacy
Business
Requirements
Domain Advisory Boards
AssociationLiaisons
AssociationLiaisons
Working Groups
ImplementationPilots
PlenarySessions
Proof of ConceptGroups
AssociationLiaisons
Reinsurance & Large CommercialPersonal & CommercialLife & AnnuitySuretyLondon
SLIDE 11
RLC Messages – the standards to be used by London
Placing Slip and contract details for quotation, firm
order and endorsement processing Technical Account
Technical accounting movements (eg LPAN) Financial Account
Listing of settlements Claim Movement
Claim and loss reserve details Bordereau
To list premium and claim or risk information Technical standards
Includes DRI
SLIDE 12
ACORD Implementations
The ACORD messages are usually large with lots of functionality
Organisations tend to implement in ‘bite size’ chunks Start with skinny messages Enhance functionality gradually
Roadmaps are needed to explain implementation phases and plans
Implementation guides are developed that reflect the agreed phased implementations
Benefits Implementations are tighter, simpler, more
manageable and cost effective
SLIDE 13
London Projects – the ACORD involvement
Placing Implement the ACORD Slip (GPD) Implement ACORD Placing
message A&S
Implement A&S Repository Implement ACORD messages for
Bureau and non Bureau accounting Claims
Implement Electronic Claims File
SLIDE 14
ACORD London Market Plans
SLIDE 15
Placing
Quote PlaceEndor
se
SLIDE 16
Placing
Quote PlaceEndor
se
MR slip G6
MRSIGG6 phase 1
Implemented
Implemented
ImplementedComplete pilot end Q2 2007G6 phase 2 (Two-way
messaging)
Implementation from June 2007
SLIDE 17
Placing
Quote PlaceEndor
se
MR slip G6
MRSIGG6 phase 1
GPD
PLACING IMPLEMENTATION GUIDE
PLACING IMPLEMENTATI
ON GUIDE
DOCUMENT REPOSITORY INTERFACE IMPLEMENTATION GUIDE
Implemented
Implemented
Completed - awaits MRG decision on rollout
ImplementedComplete pilot end Q2 2007
Publish June 2007 (G6 incorporated)
Update to include MRSIG Q3 2007
Re-publish June 2007 with London rules incorporated
TESTING AND CERTIFICATION FACILITY
•Already implemented with London DRI rules included•Support for placing targeted for June 2007
G6 phase 2 (Two-way messaging)
Implementation from June 2007
SLIDE 18
Global Placing Document (GPD)
The ACORD Slip Implementation Guide with examples Originally based on LMP (MR) Slip
Extended to include additional content for specific areas of business
GPD is mapped to the ACORD Placing message
SLIDE 19
Placing Implementation Guide (PIG) An implementation guide for the ACORD Placing
message – Processes and data required at each stage Build: client – agent negotiations about the structure of a
proposed placement. ACORD messages allow agents to propose terms for their client to review and approve or decline.
Quotation: where a client (or their agent) approaches one or more carriers for a quotation. ACORD messages allow clients, carrier and agents to request and provide quotations.
Client Approval: where a client has engaged an agent and wishes to approve their work before any contracts are placed. ACORD messages allow clients to approve the work of their agents before the placement is continued.
Order: the process of binding and formally accepting a contract. ACORD messages allow for clients and carriers to enter into a binding contract (either directly or via their agents), as well as indicate declinatures, supply conditions and manage contracts post-bind.
Endorsement: the amending of a contract after it has been bound, ACORD messages allow clients, carrier and agents to propose, agree and notify endorsements.
SLIDE 20
Placing
Quote PlaceEndor
se
MR slip G6
MRSIGG6 phase 1
GPD
PLACING IMPLEMENTATION GUIDE
PLACING IMPLEMENTATI
ON GUIDE
DOCUMENT REPOSITORY INTERFACE IMPLEMENTATION GUIDE
Implemented
Implemented
Completed - awaits MRG decision on rollout
ImplementedComplete pilot end Q2 2007
Publish June 2007 (G6 incorporated)
Update to include MRSIG Q3 2007
Re-publish June 2007 with London rules incorporated
TESTING AND CERTIFICATION FACILITY
•Already implemented with London DRI rules included•Support for placing targeted for June 2007
G6 phase 2 (Two-way messaging)
Implementation from June 2007
SLIDE 21
ACORD Testing Certification Facility
Software that confirms messages are ACORD compliant
Test own systems as though interacting with real business partner
Performs data and business validation Ensures new business partners are
ready before becoming engaged ACORD have an effective and efficient
method of certifying messages
SLIDE 22
Accounting and settlement
Close
Account
Settle
SLIDE 23
Accounting and settlement
Close
Account
Settle
A&S Strategic
A&S phase 1Signing messages; BSM, CSM, USM
Peer to Peer accounting
Implemented
Guide for ongoing reference
Implemented
Implemented internationally, not yet in London
ELPAN2Generally available from October 2007
SLIDE 24
Accounting and settlement
Close
Account
Settle
A&S Strategic
A&S phase 1
ACCOUNTING & CLAIMS IMPLEMENTATION GUIDEELPAN2: Bureau
EBOT: Non Bureau
Signing messages; BSM, CSM, USM
Peer to Peer accounting
Implemented
Guide for ongoing reference
Implemented
Implemented internationally, not yet in London
Publish June 2007 with ELPAN2 and EBOT requirements incorporated
ELPAN2Generally available from October 2007
DOCUMENT REPOSITORY INTERFACE IMPLEMENTATION GUIDE
Re-publish June 2007 with London rules incorporated
TESTING AND CERTIFICATION FACILITY
•Already implemented with London DRI rules included•Support for Accounting targeted for August 2007
SLIDE 25
Claims
AdvicePayme
ntSettl
e
SLIDE 26
Claims
AdvicePayme
ntSettl
e
ECF
CLASS (Company market)Signing messages; BSM, CSM, USMCLASS (Lloyd’s)
Implemented
Rolling out
Rolling out
Implemented
Peer to Peer claims Implemented internationally
SLIDE 27
Claims
AdvicePayme
ntSettl
e
ECF
CLASS (Company market)
ACCOUNTING & CLAIMS IMPLEMENTATION GUIDE
EBOT: Non Bureau
Signing messages; BSM, CSM, USMCLASS (Lloyd’s)
Implemented
Rolling out
Rolling out
Implemented
Peer to Peer claims Implemented internationallyPublication with EBOT requirements targeted June 2007
DOCUMENT REPOSITORY INTERFACE IMPLEMENTATION GUIDE
Re-publish June 2007 with London rules incorporated
TESTING AND CERTIFICATION FACILITY
Already implemented with London DRI rules included
SLIDE 28
SLIDE 29
ACORD – Key dates for London in 2007 TCF
DRI messagesComplete
Placing messages June 2007 Accounting messages August 2007
Placing Implementation Guide Complete for current work load June 2007 Updated for London Endorsements Q3 2007
Accounting Implementation Guide EBOT June
2007 ELPAN2 June 2007
DRI Guide enhanced June 2007
Forums IT Club Ongoing Service Providers Forum Ongoing
SLIDE 30
ACORD – other areas
Roadmaps London Roadmap - this has been
developed into the MRG Roadmap ACORD is developing Roadmaps for
North America and Europe ACORD TV
Communication and Education service Video on demand providing insurance
information via ACORD website Working on Exposure reporting
SLIDE 31
ACORD Membership
Over 500 Worldwide members London
Lloyd’s on behalf of all Managing Agents
Brokers – the major organisations Companies – many of the IUA
membership Service providers Market Associations (LMBC, LMA and
IUA)
SLIDE 32
Purpose of Standards Reduce the cost of doing business
Reduction in time and costs Connect trading partners efficiently
Sharing data with business partners Simplified and common business processes
Straight through processing Enhance data quality and transparency Improve customer service Provide access to markets and partners
globally. Speed to market with products and services Sharing data within own organisation Electronic movement of information
SLIDE 33
London office:LUC - Suite 1/33 Minster CourtMincing LaneLondon EC3R 7DD UK+44 207 617 6400
World Headquarters:Two Blue Hill Plaza3rd FloorPearl River, NY 10965 USA
+1 845 620 1700