ACORD Enabling the STRIDE Solution

ACORD Enabling the STRIDE Solution
Jan de Klerk
July 2011
INTRODUCTION
The Short Term Insurance Data Exchange
(STRIDE) is an initiative by members of the
short term insurance industry’s product providers
(SAIA) and intermediaries (FIA) that will provide
a secure method of transferring customer
information and underwriting data, primarily
between insurers and intermediaries
STRIDE MISSION
To create a sustainable and trusted insurance
industry that facilitates informed risk taking to
all stakeholders in the insurance value chain, by
defining the rules of engagement for data and
process interchange and an electronic
connectivity capability that is based on a South
African ACORD messaging standard and global
best practice, ultimately benefiting the
consumer
BACKGROUND
KEY DRIVERS - COMPLIANCE & REGULATION
 The ILAA (Insurance Laws Amendment Act) (Sec
48A) stipulates that an insurer may insist on
receiving customer information and data on the
risks for which it is on cover, from its appointed
“Binder Holders”.
 It is envisaged that the regulations supporting the
amendments to (Sec 48A) will prescribe that
insurers should at all times be in possession of
information pertaining to risk and customer detail
committed under its licence.
 Other – SAM (Solvency II), TCF, POPI ....
BACKGROUND
 The FIA and SAIA, representing intermediaries and
insurers, identified the intention of the legislator and
in order to facilitate participating members being
ready to accommodate the requirements, formed
STRIDE.
 STRIDE will be a secure and easy way of delivering
data between insurers and binder holders.
 The STRIDE way of transmitting data will, because of
its wide acceptance as well as the direct involvement
of a number of product providers, become the
preferred medium for transferring insurance data.
From high Complexity through Differentiation …
…. to Simplicity through Standardisation
BENEFITS of being a STRIDE Member
 To be part of what is viewed as the watershed in
Short Term Insurance binder holder transacting
 To be informed and in a position to plan for the
envisaged legislative changes ensuring company’s
future in the process
 Compliance with the legislation
 Long term profitability and sustainability
 Efficiencies cutting out duplication of effort and
creating economies of scale
 Ultimate cost containment
 Long term possibilities of “real time” data sharing
Conceptual Solution Overview - Definitions
Term
Definition
Translation
Changing a ‘word’ or dialect of different languages to that of another
(interpreter) - translation focuses on the semantic
Transformation
Changing from one format to another - transformation focuses on the
syntax
Mapping
The translation or transformation of a message from one format and
risk language into another (e.g. from Broker or Insurer format & risk
language into a common std SA AML)
Message
A message is either a notification (no business response required
other than technical acknowledgement of receipt), a request, or a
response to a request.
Interaction
An interaction is comprised of a request message and response
message pair. There may be many interactions required to complete a
process or business transaction
Connection
Capability to send and receive messages from a partner using agreed
message standards, transport and security.
Concept - Mapping Simplification
 Players using unique systems and data definitions can have a lot of
mapping to do to be understandable to partners:
German
French
Zulu
Venda
Swahili
English
Mandarin
Spanish
 This job, where there are many participant languages, can be
significantly simplified by creating a common language (SA AML):
German
French
Zulu
Venda
Swahili
English
Mandarin
Spanish
Concept - Communication Simplification
 Players using their own connection types (transport, security and
reliable messaging ) could have a lot of connections to support in
order to be able to communicate with partners:
email
Files
SOAP/HTTP
JMS
Tibco
WebSphere
Synchronous
messages
BizTalk
 This job, where there are many participant connection types, can be
significantly simplified by creating common adapters and a switch.
email
Files
SOAP/HTTP
Synchronous
messages
Adapters/
Switch
JMS
Tibco
WebSphere
BizTalk
Evolutionary Approach towards Nirvana
Process
Exchange
With
STRIDE &
ACORD
(Remote) Rules/
Rates
Directory/
Connectivity
Services
Communication
Standards
Common
Message Std
Manageability
Addressability
Reliable
Connectivity
Content
Standards
Duplicate effort
Isolation
Uncontrolled
rules/ rates
Uncertain
delivery
Technical
instability
Laissez-faire
Tower of
Babel
Collaboration/
Efficiency
Without STRIDE &
ACORD
Conceptual STRIDE Solution
Binder Holder
Insurer(s)
WWW
Insurer
Black Box
Pattern A
Data Warehouse
ACORD
Messages
Pattern B
Insurer System/
Data warehouse
Directory
Services
Insurer Rules &
Rating Engine
Certification
Authority
Switch
Pattern C
ACORD
Messages
AM
IEF CM
ACORD
Messages
Insurer System/
Data warehouse
ACORD more than just a Standard
STRIDE Option 4
Value Add Services
• Mapping • Application Adaptors • e-Forms Dev • Rating Hosting • ……
Value Add Services
Member Services
“Proprietary
Switch” – Option 5
STRIDE Option 3
Industry Switch
Brand A … Brand n
• Switch Development
• Switch Hosting
• WS & DS Integration
• Insurer Rules & Rating
Integration
• Data Exchange
• Process Exchange
• Message Converter
• Message Validator
• Forms Engine
• Process Standards
• Message Standards
• eForms Standards
STRIDE Option 1
Web Services
• WS Development
• WS Adaptors
• WS Implementation
• WS Support
• Switch Development
• Switch Hosting
• WS & DS Integration
• Insurer Rules & Rating
Integration
• Data Exchange
• Process Exchange
STRIDE Option 2
Connectivity Services
• WS Connectivity Stds
• Directory Services
Hosting
• Message Test Facility
STRIDE PRINCIPLES
Principle 1 – Universal Access
•
Access to the electronic inter-communication capability should be
universal and simple so as to not require significant scale in order for a
player (brokerage, UMA or insurer) or supplier (administrator, software
vendor) to be able to participate affordably.
Principle 2 – Open Standard (free to all to use)
•
The electronic inter-communication capability will need to use standards
for both content (payload) and technical connectivity that represent
international best practice. These standards should be open (freely
available to use) and governed by the appropriate bodies elected for this
purpose by the industry.
Principle 3 – Enable diversity (product, style of business,
technical solutions)
•
The electronic inter-communication capability, and the content standards
it supports in particular, should not hinder the freedom to transact
Principle 4 – Single Entry (or capture)
•
The electronic inter-communication capability should support the single
entry (capture) of information relating to risk, premium, claim & party.
STRIDE PRINCIPLES
Principle 5 – Informed players (status of message sent)
•
Any party should be capable of being informed of the status of the
information exchanged or business being transacted.
Principle 6 – Homogeneous solution (compatibility solution provided by industry support all styles of
collaboration)
•
The industry solution should be capable of supporting all envisaged
styles of collaboration.
Principle 7 – Optional usage
•
Participation in the electronic inter-communication capability will be
by commercial agreement between business partners (rather than
coercion).
STRIDE PRINCIPLES
Principle 8 – Single source of rule
•
The industry solution should facilitate the author of a business rule to
be able to retain control of the rule, throughout its life cycle,
regardless of where the rule is executed.
Principle 9 – Sealed communication
•
The industry solution should seal communication and render it
securely closed en-route between sender and receiver.
Principle 10 – Available Quality Information
•
The industry solution should ensure quality information delivery and
accessibility in accordance with formalised data/ information
exchange agreements.
Responsible
Organization
Example Scenario: Policy Sync Message
Binder Holder
STRIDE
Insurer
Broker Admin System formulates the Policy Sync notification. . . and sends to Agent
Module.
Policy Admin
System
BM
Directory
Services
Policy Admin
System
Agent Module
Carrier Module
Mapping
Mapping
Discover
Authorise
Discover
Authorise
Security
Security
Comms
BPMS
Comms
Black Box
Validate
U/W
Price
BPMS
Responsible
Organization
Scenario: Policy Sync Message
Binder Holder
STRIDE
Insurer
If required, the Agent Module maps the message into RSA AML.
Policy Admin
System
Agent Module
Directory
Services
BM
Policy Admin
System
Carrier Module
Mapping
Mapping
Discover
Authorise
Discover
Authorise
Security
Security
Comms
BPMS
Comms
Black Box
Validate
U/W
Price
BPMS
Responsible
Organization
Scenario: Policy Sync Message
Binder Holder
STRIDE
Insurer
Using only the message envelope, the Agent module asks the Directory Service for
the service endpoint & public encryption key.
Policy Admin
System
Directory
Services
Agent Module
Policy Admin
System
Carrier Module
Mapping
Mapping
Discover
Authorise
Discover
Authorise
Security
Security
Comms
BPMS
Comms
Black Box
Validate
U/W
Price
BPMS
Responsible
Organization
Scenario: Policy Sync Message
Binder Holder
STRIDE
Insurer
“Directory Services” uses the requestor, message type, addressee and policy type to
determine the endpoint and confirm authorisation of the requestor.
Policy Admin
System
Directory
Services
Agent Module
Policy Admin
System
Carrier Module
Mapping
Mapping
Discover
Authorise
Discover
Authorise
Security
Security
Comms
BPMS
Comms
Black Box
Validate
U/W
Price
BPMS
Responsible
Organization
Scenario: Policy Sync Message
Binder Holder
STRIDE
Insurer
“Directory Services” provides the public encryption key and the endpoint address
(CM queue).
Policy Admin
System
Directory
Services
Agent Module
Policy Admin
System
Carrier Module
Mapping
Mapping
Discover
Authorise
Discover
Authorise
Security
Security
Comms
BPMS
Comms
Black Box
Validate
U/W
Price
BPMS
Responsible
Organization
Scenario: Policy Sync Message
Binder Holder
STRIDE
Insurer
The Agent module signs and encrypts the message, establishes a peer-to-peer secure
pipe, . . . and forwards the message to the addressee, directly or via a switch.
Policy Admin
System
Directory
Services
Policy Admin
System
Agent Module
Carrier Module
Mapping
Mapping
Discover
Authorise
Discover
Authorise
Security
Security
Comms
BPMS
Comms
Black Box
Validate
U/W
Price
BPMS
Responsible
Organization
Scenario: Policy Sync Message
Binder Holder
STRIDE
Insurer
The Carrier Module decrypts the message using a private key, maps the message into
the insurer format, and passes to the Insurer target system.
Policy Admin
System
Directory
Services
Agent Module
Policy Admin
System
Carrier Module
Mapping
Mapping
Discover
Authorise
Discover
Authorise
Security
Security
Comms
BPMS
IM
Comms
Black Box
Validate
U/W
Price
BPMS
Why ACORD AML
 Common Services Program
ACORD Message Library (AML) is part of the Common Services Standards initiative to
create new generation XML
 Core Insurance Domain xml Vocabularies
There are 4 core domains; P&C, L&A, RLC and AML. These are the base standards
upon which then specific LOB or Domain standards are built. The core vocabulary
is the base foundation (underlying model) upon which Process Specific Message
Standards are built, assuring that like concepts in all messages are expressed the
same way.
 ACORD Framework
The ACORD Framework is the next evolution of
standards development and a new era in what
ACORD delivers to the insurance industry. It
represents a single streamlined business model
for standards creation and consist of five
interrelated models, or facets, that collectively
define the insurance industry. The aim is to
enable:
• more consistent and consumable standards
• a common terminology and methodology
• requirements of differing business needs,
across geographic boundaries
ACORD SA Work Group Achievements
The working group consists of ACORD, STRIDE and industry volunteers (insurers, vendors and
brokers) from various companies (Brolink, Santam, Glenrand, Mutual and Federal, Transunion, Zurich,
Hollard, Aon, Chartis, Astute etc.).
The past 18 months was very successful in developing the SA AML Standards:
 Development of the Commercial and Personal lines structure for the ACORD AML Policy
Synchronization message consisting of all the sections for Property, Auto, All Risk,
Watercraft, Liabilities & Accident
 Development of codes and code lists for the Commercial and Personal lines structures. The
South Africa Candidate Release was released on the 19th of May 2011. These structures
are currently being tested where real-word scenarios will be used to ensure whether all
needs are met
 The next area of development by this working group is the Claim Synchronization message
structure and codes as well as the Financial Boudreaux message.
Thank You