Insurance
Insurance is one of the most heavily paper document–dominated industries
around. The need to document the entire insurance process, from customer
acquisition to claims ful-fillment (and everything in between), practically
eclipses every other industry with the exception of perhaps health care. As
such, the need to simplify the storage and exchange of this information has
motivated groups to create industry standards, using XML as a possible base for
these efforts. In this section, we focus on one of the major insurance industry
XML efforts.
Association for Cooperative Operations Research and Development (ACORD)
The insurance business is driven by data, and the Property &
Casualty (P&C) business is no exception. In the drive to utilize the
Internet as a means for real-time exchange of insurance information between
producers, carriers, rating bureaus, and service providers, the Association for
Cooperative Operations Research and Development (ACORD) cre-ated an XML format
for defining message-oriented P&C transactions. Leveraging the existing
Interactive Financial Exchange (IFX) specification as a “base protocol,” ACORD
is defining an insurance industry format that contains transactions for
Personal and Commercial Lines, Surety, Claims, and Accounting transactions. As
a result, most of the business message structure, data types, and documentation
conventions were borrowed from the IFX specification.
The organization was actually formed in 1970 for the development and
promotion of standards for the insurance industry. ACORD’s first XML standard
to pass approval was its ACORD Property and Casualty and Surety (P&C and
Surety) specification, developed in late 1998 and approved in 2000. ACORD’s
follow-up to this was the development of the ACORD Life insurance standard
known as XMLife. A key aspect of the ACORD standards is its dependence on the
IFX standard and its support of the e-business stan-dardization effort ebXML.
It also extends Automation Level 3, an EDI standard adopted in the insurance
industry.
ACORD specifies all the aspects of the insurance lifecycle, from
customer acquisition to claims fulfillment. These are divided along the lines
of Property and Casualty, Life, and Surety insurance. ACORD specifies a very
large and thick Document Type Definition (DTD) around the vocabulary and
exchange mechanisms designed to meet these needs.
Due to its longevity and reputation,ACORD has the support of over 1,000
insurance car-riers and groups, 25,000 agencies, the majority of software
services and vendors, many nonprofit organizations, and the CPCU society. This,
combined with its excellent work in the form of its XMLife and Property and
Casualty standardization efforts, contribute to its excellent chances of
success in surviving any battles with conflicting insurance industry standardization
efforts.
For security, ACORD relies on channel-level encryption, such as SSL or
SMIME, for privacy and data integrity. ACORD contains built-in mechanisms for
authentication of user parties and transactions but does not provide any
mechanism to protect privacy and guarantee data integrity between endpoints. As
a result, the implementation relies on channel-level facilities for this
functionality. Because ACORD follows the same architec-ture structure of IFX,
it supports batch and interactive styles of communication and is application
protocol independent, supporting HTTP, FTP, SMTP, or emerging protocols for
transport.
The ACORD Global Standards Strategy Committee has also announced a
project called “eMerge” that aims to integrate existing ACORD standards into a
single common stan-dard. The goal is to facilitate more effective and efficient
movement of data between insurance trading partners. This project is an
evolution of the XML standards that ACORD has supported since 1998. This new
and evolving format will develop a single view of financial services by
partnering with other standards bodies globally in an effort to facilitate
straight-through processing (STP). Increasingly, the lines between insurance
and the other financial services sectors are becoming blurred by virtue of
increasingly shared data and implementations. Adoption of a common
data-exchange structure will simplify and streamline data transfer both
internal and external to an enterprise.
Major ACORD members involved in crafting the standards include such
insurance and software industry vendors as Channelpoint, IBM, Manulife
Financial, Marsh Inc., MetLife, Microsoft, Oracle, Principal Financial Group,
SAFECO, Silverlake Software, The Hartford, Travelers, TowerStreet, and ZeBU.
Related Topics
Privacy Policy, Terms and Conditions, DMCA Policy and Compliant
Copyright © 2018-2024 BrainKart.com; All Rights Reserved. Developed by Therithal info, Chennai.