ACORD in the London Insurance Market

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ACORD in the London Insurance Market

• March 2007

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Agenda

• About ACORD
• Current Activities
• Future Plans

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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

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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

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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

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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 information
• and the
• Need for Standards

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The ACORD Vision

• The Global Insurance/Reinsurance Industry has
  one, common set of Business Data Definitions
• All solutions implemented are built upon these
  Standards

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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

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ACORD Governance
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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

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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

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London Projects the ACORD involvement

• Placing
• Implement the ACORD Slip (GPD)
• Implement ACORD Placing message
• AS
• Implement AS Repository
• Implement ACORD messages for Bureau and non
  Bureau accounting
• Claims
• Implement Electronic Claims File

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ACORD London Market Plans
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Placing
Quote
Place
Endorse
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Placing
Quote
Place
Endorse
Implemented
Implemented
MR slip
G6
Implemented
Complete pilot end Q2 2007
MRSIG
G6 phase 1
Implementation from June 2007
G6 phase 2 (Two-way messaging)
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Placing
Quote
Place
Endorse
Implemented
Implemented
MR slip
G6
Implemented
Complete pilot end Q2 2007
MRSIG
G6 phase 1
Implementation from June 2007
G6 phase 2 (Two-way messaging)
Completed - awaits MRG decision on rollout
GPD
Update to include MRSIG Q3 2007
PLACING IMPLEMENTATION GUIDE
Publish June 2007 (G6 incorporated)
PLACING IMPLEMENTATION GUIDE
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 placing targeted for June 2007

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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

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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.

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Placing
Quote
Place
Endorse
Implemented
Implemented
MR slip
G6
Implemented
Complete pilot end Q2 2007
MRSIG
G6 phase 1
Implementation from June 2007
G6 phase 2 (Two-way messaging)
Completed - awaits MRG decision on rollout
GPD
Update to include MRSIG Q3 2007
PLACING IMPLEMENTATION GUIDE
Publish June 2007 (G6 incorporated)
PLACING IMPLEMENTATION GUIDE
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 placing targeted for June 2007

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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

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Accounting and settlement
Close
Account
Settle
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Accounting and settlement
Close
Account
Settle
Guide for ongoing reference
AS Strategic
Implemented
AS phase 1
Signing messages BSM, CSM, USM
Implemented
Generally available from October 2007
ELPAN2
Implemented internationally, not yet in London
Peer to Peer accounting
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Accounting and settlement
Close
Account
Settle
Guide for ongoing reference
AS Strategic
Implemented
AS phase 1
Signing messages BSM, CSM, USM
Implemented
Generally available from October 2007
ELPAN2
Implemented internationally, not yet in London
Peer to Peer accounting
Publish June 2007 with ELPAN2 and EBOT
requirements incorporated
ACCOUNTING CLAIMS IMPLEMENTATION GUIDE ELPAN2
Bureau EBOT Non Bureau
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

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Claims
Advice
Payment
Settle
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Claims
Advice
Payment
Settle
Implemented
Implemented
CLASS (Company market)
Signing messages BSM, CSM, USM
Rolling out
CLASS (Lloyds)
Rolling out
ECF
Implemented internationally
Peer to Peer claims
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Claims
Advice
Payment
Settle
Implemented
Implemented
CLASS (Company market)
Signing messages BSM, CSM, USM
Rolling out
CLASS (Lloyds)
Rolling out
ECF
Implemented internationally
Peer to Peer claims
ACCOUNTING CLAIMS IMPLEMENTATION GUIDE EBOT
Non Bureau
Publication 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
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ACORD Key dates for London in 2007

• TCF
• DRI messages Complete
• 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

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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

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ACORD Membership

• Over 500 Worldwide members
• London
• Lloyds on behalf of all Managing Agents
• Brokers the major organisations
• Companies many of the IUA membership
• Service providers
• Market Associations (LMBC, LMA and IUA)

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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

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World Headquarters Two Blue Hill Plaza 3rd
Floor Pearl River, NY 10965 USA
1 845 620 1700

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