ACORD Makes Strides in Advancing Framework, Alliances
Insurance Networking News, May 19, 2009
Like many stakeholders in the insurance technology arena, the Association for Cooperative Operations Research and Development (ACORD) took advantage of its annual conference (the 2009 ACORD LOMA Insurance Systems Forum) this week in Advertisement
First, in a clear effort to expand their presence in the Excess & Surplus area, ACORD LOMA and the American Association of Managing General Agents (AAMGA) announced that they have joined each other's organizations. This more formal relationship will enhance their shared message of improving Excess & Surplus lines data flow through standards.
The effort is in response to E&S carriers that use their own unique systems and have created online applications for the agents to re-key the information. This information already exists in many agency management systems so the implementation of ACORD standards would improve the speed, efficiency, and accuracy of data by eliminating rekeying.
ACORD has developed several XML messages as well as numerous forms to support E&S business which the AAMGA is advocating. Forms include:
* 125 - Commercial Insurance Application Applicant Information Section
* 140 - Property Section
* 126 - Commercial General Liability Section
* 130 - Workers Compensation Application
* 160 - Business Owners Application Draft Supplement for E&S
* 105 - Draft Apartment Building Supplement
* 106 - Draft Vacant Building Supplement
The relationship is more of a formality, notes Ann Henstrand, assistant vice president, Industry & Government Affairs. "ACORD and AAMGA have been working together for many years to improve data communication for E&S lines. ACORD has developed the standards and AAMGA has advocated the implementation of those standards to the MGA community. Through this reciprocal membership, we're making our relationship more concrete to our memberships and to the industry so that we can more clearly speak with a unified message encouraging ACORD standards implementation."
The AAMGA represents more than 500 members and is the leader in and voice of the wholesale and excess and surplus lines insurance industry. One of their main goals is to advance the knowledge of their members and encourage the full utilization of technology. The AAMGA Automation Committee’s specific mission is to improve use of automation and technology internally with greater efficiency among its members. With a shared goal, ACORD and the Committee continue to work together to increase both the knowledge about and implementation of the ACORD E&S standards.
ACORD also announced at its conference that its Framework is gaining momentum, as it released one of the main facets of its Framework - the Information Model - to members yesterday at the 2009 ACORD LOMA Insurance Systems Forum.
The goal of the ACORD Framework is to update the standards development process to create consistent standards regardless of standard type (i.e., form, xml), geography or line of business such as life or P&C.
There are five facets to the Framework: Business Dictionary, Capability Model with Process Maps, Component Model with Service Maps, Data Model, and Information Model.
The Information Model plays a central role in this standards development process as it provides the relationships among insurance concepts. It also provides an understanding of how information relates and where information enters the data flow which benefits all parties.
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