The London Market Group has agreed that ACORD will be the London market’s chosen data standards methodology, with the content of the Core Data Record (CDR) set to align with that.
The decision was made at its meeting in March, with input from the Data Council, supported by its Technical Group.
The purpose of the CDR is to facilitate accounting and settlement, as well as tax and regulatory reporting for the London insurance market, and its content will align to ACORD’s Global Reinsurance and Large Commercial (GRLC) standard.
Sheila Cameron, CEO of the Lloyd’s Market Association and Chair of the Data Council commented: “It has been a privilege to work with everyone on the Council and the Technical Group, and especially Steve Hicks from Lloyd’s who leads the data standards and CDR workstream, to achieve these goals.
“It is a vivid reminder of what the market can achieve when it works collaboratively.
“By aligning with ACORD we can drive greater interoperability of systems, as well as between London and other global insurance markets.
“Although today’s news focuses on the accounting and reconciliation process, it also provides a foundation to support future market initiatives including pre-bind placement activity.
“Market firms will need to ensure that they are members of ACORD to ensure they can access the technical information they will require to take full advantage of these decisions.
“Having achieved our goals within the timeline set, we will move onto the next phase of work; developing computable contacts, including the intelligent Market Reform Contract, and deciding on the optimal process for how data should be assembled, as well as who inputs which piece of data, to what degree of quality, at which point in the process.
“We have made a strong start, but we have much more to do to drive the digitalisation of our market and its adoption to achieve significant change.”
ACORD CEO and President Bill Pieroni said: “We are proud to support the London Market in its ongoing, visionary modernisation efforts. ACORD has provided insurance standards for more than 50 years, and the ACORD Data Standards are used by thousands of insurance stakeholders across more than 100 countries.
“Standards maximise the impact and value of data by optimising the speed, efficiency, and accuracy of information exchange.
“Having one common ‘language’ for data will not only benefit the London Market’s internal processes but make it easier for insurance markets across the world to connect with London and leverage its centuries of experience and expertise.”