Some news from ACORD for you, after they hosted an industry event last week;
A group of insurance industry leaders came together recently to promote their shared view that the industry’s digital evolution can be transformed by a new wave of global hub-and-spoke (or peer-to-peer) connectivity. At Connecting Markets, speakers shared an industry-first demonstration of real-time connectivity between a global broker and carrier, showing how processes that traditionally take days can now be reduced to minutes through direct system-to-system data exchange.
Connecting Markets, co-hosted by ACORD and ACORD Solutions Group, brought together senior digital leaders from AXA XL, Marsh, the International Underwriters Association and the Lloyd’s Market Association alongside newly appointed ACORD Solutions Group CEO Chris Newman and ACORD UK Managing Director Clarissa Montecillo. All of them made the case for the efficiency of peer-to-peer data transfer, facilitated by shared data standards; and set out a call to action for the London market to pursue this path.
With the Lloyd’s market’s administrative cost ratio rising from 7% to 12% over the past 20 years, speakers agreed that the case for replacing document-led processes with peer-to-peer digital data exchange is now unavoidable, particularly with London estimated to be operating at a 5%-10% cost disadvantage to other global insurance hubs.
ACORD’s own case-study results shared showed significant measurable gains once structured data is exchanged directly between trading partners, including:
• 60-day improvement in information transfer between trading partners
• Over 30% improvement in turnaround times compared with traditional approaches
• 60% reduction in manual effort to process claim transactions
• 50% reduction in reconciliation work, alongside improvements in data quality
The speakers discussed innovation in standardised digital data exchange and shared a preview of what future opportunities might look like in the space, including a case study from Marsh and AXA XL, in which all parts of the risk process had been re-engineered in a programme that has connected Marsh and AXA XL’s data directly, through real-time connectivity via the ADEPT platform.
The discussion also highlighted momentum behind building a more connected, end-to-end digital transaction across placing, claims and administration, with real-time, standardised data reducing re-keying, reconciliation, and avoidable queries across the value chain.
Chris Newman, Chief Executive Officer (CEO), ACORD Solutions Group, said:
“Too much of the market still runs on documents that must be interpreted, re-keyed and repeatedly reconciled. At this event we have heard from organizations that are doing it a better way – not planned for the future, but implemented right now, right here in London. This revolutionary real-time data connection between a global broker and carrier shows us the future is already here. That’s how you take cost out, improve control, and move at the pace clients expect.”
Joe Brace, Operations Director at the Lloyd’s Market Association, said:
“The LMA represents the voices of Lloyd’s market businesses who are looking to re-engineer their approach to handling risks, allowing underwriters to focus on portfolio management, not low-value-add tasks. The development of a more digital follow market is also significant in this context, and both of these together make it an imperative for each business to be able to plot its own path to a more digital future. Peer-to-peer connectivity is one way that we can do this.”
Chris Jones, CEO of the International Underwriting Association said:
“The international profile of the IUA membership is such that developing and promoting common data standards which can unify insurance operations across regions and markets is of clear benefit and should be robustly pursued. Our work with ACORD remains crucial in this regard and is centred on building the foundations that allow data to exist in a format which any system can understand as a universal language of both global insurance and the London market. Further developing peer to peer connectivity is an increasingly important element that will lead to significant strategic and operational benefits and create a complete ecosystem from which all parts of the market will benefit hugely.”
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