ACORD 2006. ACORD in the London Insurance Market March 2007.

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