The Lloyd’s Risk Blog » Blog Archive » ‘Data, but not as we know it…’

You’ll notice ACORD is a recurring theme in my blogs and this is not just a coincidence. We are moving to an electronic world and the ACORD standard, which supports the use of structured data, is at the heart of this.

Structured data, so what?

Well the ’so what’ is actually quite big and while ACORD standards may seem rather unexciting, and to some may even seem intangible – the benefits of using structured data are many.

Think:

Validation of data before submission – recipients receive accurate and reliable data directly into their back office systems, no more re-keying!
Support for regulatory compliance – better quality and more accurate data is available faster and more securely (great for complying Solvency II, data protection and transparency rules)
Better management information available = better business decisions
The data becomes international and portable – businesses can easily hook into lower value but profitable global business
Exchange of information quietly running in the background leaving brokers and underwriters to focus on trading

And whilst in some individual cases it is difficult to define ‘how much bang for your buck’ it is important to realise what these changes are really about – and that’s modernising the Market.

The standards are already being implemented to support key business processes in the Market, I’ve highlighted some examples below:

Technical /financial accounts messages are being used in the eAccounting project. And these message types have been enhanced to support both bureau and non-bureau transactions
Placements and endorsements are supported. The 2009.1 standard, which will support multisection risks and declarations, is likely to be implemented within the next 6 months and tools such as the Lloyd’s Exchange will validate against this standard. First steps on the way to ensure single interpretation and use across the Market.
The ACORD standard for document repository interoperability (DRI) allows brokers and insurers to exchange documents, already in use for the Accounting and Settlement repository and the Electronic Claims File

And the technology is there to support this change – the Market have already laid the foundations with the Electronic Claims File, Accounting and Settlement and now the Lloyd’s Exchange – demonstrating the commitment there is to using technology to fulfil the vision of an efficient, modern market place.

The decision by underwriters and brokers to start this modernisation journey with the Electronic Claims File was bold, a step into the unknown. But here we are, five years on, the benefits of that decision are now real with quarter by quarter reduction in claims settlement time probably now halving the average time for claims handled on paper.

Any dilemma around an electronic world is less about the technology, the standards to support this, or even the pounds and pence business case (remember this is about modernisation) and more about the cultural change this brings.

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Tags: ACORD, Lloyd's Exchange