introduction of global data standards for finance & insurance
TRANSCRIPT
Introduction of Global
Data Standards for Finance & Insurance
Introduction of GlobalData Standards for
Finance & Insurance
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What Are Data Standards?
Definition: Standard (n.) “Anything recognized as correct by common consent, by approved custom, or by those most competent to decide; a model; a criterion.” -- Webster’s New Universal Dictionary
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Type of Standards
Official vs. De Facto Standards
Open vs. Closed Standards
Horizontal vs. Vertical Standards
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Standards: Business Drivers Fueling International Interest
External: Globalization Convergence of
Financial Services Customer Centric
Marketplace E-Business
Expansion Wholesalers Portals Direct B2B service
providers
Internal: Multiple product
lines Expanding
distribution channels Mergers/Acquisitions Reduction of time to
market Shrinking IT Budgets Survival
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Standards in Chinese Insurance Industry
Standardization of Regulation Expansion of overseas
operations Interaction with Foreign
Insurance Companies China’s entry into WTO Expanding Product Lines
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Agent/Producer
InsuranceCarriers
RegulatoryAuthorities
ServiceProviders
InsuranceAgency
Reinsurer
Claims Management Applications
Auditing
RegulatoryCompliance
Payment transactions
Premium transactions
Broker/InsurerIns/ReinsurerClaims
Submission
Need for collaborationNeed for collaboration
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Benefits of Data Standards
Agent/Producer
`InsuranceCarriers
RegulatoryAuthorities
ServiceProviders
InsuranceAgency
Reinsurer
Claims Management Applications
Regulatory Compliance
Payment transactions
Premium transactions
Broker/InsurerIns/Reinsurer
Claims
Submission
STANDARDS&
IMPLEMENTATION
Auditing
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Components of Data Standards
Data Dictionary
Object Model
Relationships
Code Lists
Imact of XML on Data Standards ‘Extensible
MarkupLanguage’
Not a technologytied to any particularplatform and vendor
STANDARD developed by
‘ExtensibleMarkupLanguage’
Not a technologytied to any particularplatform and vendor
STANDARD developed by
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Party_1Gallo, Joseph M. 30350892145 Ohio1USA1Home108 Dawson St
Philadelphia PA 19130 USA Joseph Michael
Gallo 2 Single 1Male 1965-04-22
Hard to readHard to read Rigid Rigid VersioningVersioningproblemsproblems
Fixed Length Record (EDI) Example
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<Party id="Party_1">
<FullName>Gallo, Joseph M.</FullName>
<GovtID>303508921</GovtID>
<ResidenceState tc="45">Ohio</ResidenceState>
<ResidenceCountry tc="1">USA</ResidenceCountry>
<Address>
<TypeCode tc="1">Home</TypeCode>
<Line1>108 Dawson St</Line1>
<City>Philadelphia</City>
<AddressState>PA</AddressState>
<Zip>19130</Zip>
<AddressCountry>USA</AddressCountry>
</Address>
<Person>
<FirstName>Joseph</FirstName>
<MiddleName>Michael</MiddleName>
<LastName>Gallo</LastName>
<MarStat tc="2">Single</MarStat>
<Gender tc="1">Male</Gender>
<BirthDate>1965-04-22</BirthDate>
</Person>
</Party>
SelfSelfDescribingDescribing
Structured Structured
ExtensibleExtensible
XML Example
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Messaging Standards
Definition: Messaging (n.) “Loosely-couple atomic transaction between systems or trading partners.”
Business Messages are Technology-Neutral
Business “Message” vs. “Process” Enables “Straight-Through
Processing” (STP)
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STP Example: “First Notice of Loss”
Message
CustomerCustomer ProducerProducer
InsuranceCarrier
InsuranceCarrier
Value-Added
Network
Value-Added
Network
ReinsurerReinsurer
Third-Party
Admin.
Third-Party
Admin.
RegulatoryComplianceRegulatoryCompliance
Statistical ReportingStatistical Reporting
ClaimReported
LossRepaid
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Framework Standards
Definition: “Architectural platform upon which Messaging Standards are Implemented.”
Type of Frameworks Open Closed
Examples: EbXML SOAP XP (W3C) MQ Series
(IBM) BizTalk
(Microsoft)
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Horizontal Standards: Examples
ISO (Int’l Standards Org.) ISO 11179 – “Data Elements” ISO 8601 – “Time & Date Formats”
W3C (World-Wide Web Consortium) HTML – “Hyper-Text Markup
Language” XML – “eXtensible Markup Language”
ebXML (UN/CEFACT + OASIS)
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Vertical Standards: Examples
HRXML – “Human Resources XML”
XBRL – Financial Reporting (Accounting)
SwiftML – Retail Banking
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Property & Casualty(General Insurance)
•Personal Lines•Commercial Lines•Surety
Property & Casualty(General Insurance)
•Personal Lines•Commercial Lines•Surety
Life•Annuities•Health•Disability•Investments
Life•Annuities•Health•Disability•Investments
Banking and Securities
Banking and Securities
RegulatoryRegulatory
ReinsuranceReinsurance
Common Data Models
Multiple Distribution Channels
Common Data Models
Multiple Distribution Channels
HumanResourcesHumanResources AccountingAccounting
No Industry Exists in a Vacuum
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Vertical Standards – Insurance Industry Examples
Life Insurance ACORD XMLife (U.S.A.) ORIGO (U.K.) CLIEDIS (Canada)
P&C (General) Insurance ACORD XML for P&C (U.S.A.) eEG7 (Europe) Polaris (U.K.)
Reinsurance ACORD “JV” (Europe)
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Who is ACORD?
Independent and Objective Association Serving the Industry since 1970 Facilitating Industry-Driven
Standards (Carriers, Agents,Solution Providers, Associations)
Not For-Profit Corporation Anti-trust Exemption
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Evolution of . . .
1970’s Forms
1980’s AL3 1990’s AL3 Implementation
2001 + Convergence, Global, Reinsurance
1998
XML 1996Life Standards
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Standards Supported
Life Insurance Life Annuities Disability Investments Group Life Reinsurance Global
Object Model
XMLForms
Property & Casualty Personal
Lines Commercia
l Lines
Surety
EDI
XMLForms
Joint Venture Reinsurance P&C
Reinsurance
Large Commercial Lines
Global
EDI
XML
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Global Standards Committee Mission, Policy & Arbitration
Steering Committees Approve & Prioritize projects
P&C Life Reins/ Global Commercial
Subcommittees Develop Standards Members vote Life, P&C,Reinsurance, Forms
Working Groups Implementatio
n guides New
transactions
<EffectiveDate><EffectiveDate/><ExpirationDate><ExpirationDate/><PartyName><PartyName/>
The Standards Process
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0 100 200 300 400
2000
1999
1998
1997
2001 YTD *
405405
Member Growth - Carriers and Solution Providers
* As of August 2001
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Membership Profile
P&C Carriers
Life Carriers
Reinsurers
Agents/Brokers
Suppliers
See www.ACORD.org for most current membership listing
Trade Associations User Groups Financial Services Org. Risk Managers Service Bureaus Lab Companies
Global Global ReachReach
P& C InsuranceP& C Insurance
ReinsuranceReinsurance
Life Insurance Life Insurance
New OpportunitiesNew Opportunities
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StandardStandardss
Cooperative ApproachCooperative Approach
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Cooperative Standards Process
Workflow Analysis Standards Atlas
Determine Overlap and Opportunity
Identify Strategic AlliancesDevelop Plan for
Common Model / Transactions
Merge/Converge Harmonize Enhance Build New
Detailed Plan of Single View
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Alliances and Relationships
Harmonized Standards
ACORD Standards
Hr-XML Hr-XML
DTCC DTCC
CSIO (Canadian Standards)CSIO (Canadian Standards)
ANSI X12 - mapped Life ReinsuranceANSI X12 - mapped Life Reinsurance
EDIFACT (D9)EDIFACT (D9)
EEG7 (Western European EDIFACT Insurance EEG7 (Western European EDIFACT Insurance Group)Group)
IFX (Interactive Financial Exchange)IFX (Interactive Financial Exchange)
Life Office of South AfricaLife Office of South Africa
RIMSRIMS
CLIEDISCLIEDIS
Joint Venture ReinsuranceJoint Venture Reinsurance
MIBMIB
NAILBANAILBA
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