Do You Know Where Your Exposures Are

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Do You Know Where Your Exposures Are?

• New standards for Open market and Binding
  Authority risk reporting

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ACORD

• Non-Profit Insurance Association
• 30 Years of Standards Implementation
• ACORDs Guiding Principles
• Facilitate Collaboration
• Bring together efforts
• Consolidation of standards
• Supplier neutral and platform independent
• A broad base of solutions
• Drive Implementation

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Background

• Simon Sperryn, LMA Chief Executive

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Driving Factors

• Why Data Standards?
• Data Consistency
• LMA Data Standards Group
• Define a standard for the submission of risk
  information
• Requirements were agreed by 13 Lloyds Managing
  Agents published at events such as NAPSLO 2002,
  LMA website and lm_at_rket
• Work with ACORD
• A standard that reflects not only the
  requirements of Lloyds, but also wider
  communities
• Approved by ACORD membership on 11 July 2003

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The Franchise

• Rolf Tolle, Lloyds Franchise Performance Director

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Why the New ACORD Standard is good for the
Franchise

• Data standards for the whole market
• Creating efficiency
• More accurate assessment of exposure through
  improved quality of data
• Reducing costs by avoiding duplication
• Improving profitability
• Better flow of information
• Enhancing Lloyds competitiveness

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Conclusion

• Better data
• Creating a more disciplined and analytical
  environment
• Supports Franchise focus on underwriting profit
  and improved standards
• Building a more modern, efficient and profitable
  marketplace

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The Broker Involvement

• Lynne Hooker, Director, Miller Insurance Services
  Limited

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Binder broker view

• Multiple formats currently
• Different requirements from market participants
• Common solution for London market prerequisite
  for real progress
• Broker expertise required
• During standard creation, and now ongoing
• Partnerships approach to encourage adoption
• Brokers and Underwriters need to work closely
  with Coverholders who are the data providers
• Important that NAPSLO and AAMGA engaged
• MGA systems providers support will also be needed

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Overview Exposure Reporting Standard

• Phil Brown, ACORD Program Manager

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Open market exposures - participants

• International
• Brokers
• Reinsurers
• Insurers
• Catastrophe Modelling Providers
• Built on work with RIMS (Risk Insurance
  Management Society)

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Flows of information
Other flows also covered
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Open market exposures - scope

• Lines of business addressed so far
• Commercial property (including related BI)
• Worldwide exposures
• Formats
• Spreadsheet layout
• XML message
• Interoperability
• Directly compatible with ACORD PC Apps / XML
• Spreadsheet and XML completely in sync
• Interoperable with binding authority standards
• Cat modelling providers fully involved

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Data Dictionary
And so on see implementation guide document
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Simple spreadsheet (location values)
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Overview Binding Authority Standard

• Benita Gayton, ACORD Program Manager

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Binding Authorities - Participants

• Syndicates
• Beazley
• Brit
• Catlin
• Faraday
• Hiscox
• Kiln
• Liberty
• Markel
• Wellington
• Company Market
• Alea London

• Brokers
• AON
• Bell and Clements
• BMS Group
• Claytons
• JLT
• Marsh Ltd
• Stow Croton
• Thompson Heath Bond
• Miller
• Associations
• AAMGA
• ISO
• LMA
• NAPSLO

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Binding Authorities - scope

• Lines of business addressed so far
• US Based Risk
• Homeowners
• Commercial property
• Standards format
• Spreadsheet layout
• XML message
• Interoperability
• Directly compatible with PC Apps / XML
• Spreadsheet and XML completely in sync
• Interoperable with open market exposure standard

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HOMEOWNERS
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COMMERCIAL PROPERTY
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Finally

• Standards are Approved 11th July
• Implementation Support
• Identify Who
• Pilot Working Group
• Focus Groups ex Vendor Meeting
• Individual Services
• Industry Events
• Communication Support

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Questions

• Moderated by Susan Ousey, ACORD

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Thank you for attending

• For Implementation Guides or more Information
• Phil Brown, ACORD
• Pbrown_at_acord.org or 020-7617 6402
• Benita Gayton, ACORD
• Bgayton_at_acord.org or 020-7617 6406