ORLANDO, FL – May 23, 2005- How are ACORD (www.acord.org) members using standards and planning their strategies? That was just one of the questions put before ACORD’s top 25 Life and Annuity, Property & Casualty/Surety, and Reinsurance/Large Commercial members.
In a brief on-line survey, members described how they use the ACORD standards today, and what they are planning for in the near future. Members were chosen based on AM Best data for premiums and market penetration.
An overwhelming 90% of those surveyed said they currently have a strategy in place to implement ACORD standards and 93% said they have plans for implementing in 2005. One best practice gaining momentum is using ACORD standards for internal integration. When asked whether they are being used for internal or external integration projects, only 7% use ACORD standards strictly for internal connectivity, 39% use them for external only and the majority, 54%, use the standards for both internal and external integration.
“The survey shows that members are truly embedding standards as part of their strategies as well as actively planning and implementing ACORD standards,” said Denise Garth, vice president, Membership and Development, ACORD. “They have proven that ACORD standards are a strategic part of an enterprise data architecture for both IT and business.”
When asked which ACORD standards they have implemented, the numbers show that members are actively using more than one standard specification:
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AL3 for Property & Casualty – 35%
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XML for Property & Casualty – 35%
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XML for Life & Annuity – 50%
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XML for Reinsurance – 23%
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EDI for Reinsurance – 27%
ACORD Standardized Form use was relatively even with 23% using P&C Forms and 19% using the newly released Life & Annuity Forms.
“Our members continue to show their strategic commitment to ACORD, ACORD standards, and the use of standards across the industry. As the leaders of our industry have shown in this survey, they are also leading the way in the implementation of ACORD standards. Standards are the way business is done today and those that don’t will be left behind,” said Garth.
About ACORD: Based in New York, ACORD (Association for Cooperative Operations Research and Development) is a global, nonprofit insurance association whose mission is to facilitate the development and use of standards for the insurance, reinsurance and related financial services industries. With offices in London as well, ACORD accomplishes its mission by remaining an objective, independent advocate for sharing information among diverse platforms. ACORD Standards and services improve efficiency and expand market reach. Affiliated with ACORD are hundreds of insurance and reinsurance companies, and thousands of agents and brokers, related financial services organizations, software providers, and industry organizations worldwide.
