What is the ACORD Framework?

What is the What is the ACORD Framework?

Copyright by ACORD.

ACORD is building the FrameworkACORD is building the Frameworkfor greater efficiency

• Framework streamlines standards development and creation

• Framework better serves ACORD members and the industryy

ACORD is building ACORD is building the Framework for the future of the industryfuture of the industry

• More diverse membershipmembership

• Global membership• Current processes • Current processes

may not work across geographies

ACORD is building the Framework ACORD is building the Framework because business models

are changingare changing

Change happens at different speeds:

Domain

Product

Geography

Corporate structure

ACORD is building the ACORD is building the Framework for flexibility

• Single business model

C b d• Cross-border

• Differing business needs

The Framework will save your The Framework will save your organization time and resources

• ACORD provides the foundationfoundation

• Anyone can use the Framework in whole or Framework in whole or in part

The Framework givesThe Framework givesyou creative freedom

The Framework has 5 facets

B i

The Framework has 5 facets

BusinessDictionary

Process

CapabilityModel

ProcessMaps

ServiceM

InformationModel

Maps

ComponentModel

DataModelModel

The Business Dictionary The Business Dictionary contains standard definitions

BusinessDictionary

definitions

• Non-technical explanations

• Context works for the ti i d tentire industry

The Business Dictionary BusinessDictionary

The Business Dictionary gets you in tune with otherswith others

Standardized terminology Standardized terminology means ease

of communication

BusinessDictionary

of communication

• Examples of common definitions“frank will provide”“frank will provide”p“frank will provide”

• What they mean and how th ’ l t dthey’re related

• Common language to align business and IT internally

The Dictionary relates to The Dictionary relates to the other four facets

BusinessDictionary

• Dictionary terms employed across all facetsacross all facets

• Changes made in unison

ProcessMaps The Capability Model

CapabilityModel

The Capability Model defines what insurance companies can docompanies can do

• Baseline of a company’s capabilities

• Individual companies b t ll biliti vary, but all capabilities

exist in the industry

Process Maps within the ProcessMaps Process Maps within the

Capability Model name specific functions

CapabilityModel

specific functions

Customer Customer Service

• Company Capability:

ClaimsInvestigation

Customer Service

• Process within Customer S i Cl i I ti tiService: Claims Investigation

The Capability Model ProcessMaps The Capability Model

presents a standard perspective

CapabilityModel

standard perspective

• Does not define a required workflow, just reflects the industry’s usual way of doing business

Th M d l ff i ti l • The Model offers an organizational benchmark

You may already be ProcessMaps You may already be

using the Capability Model and not know it

CapabilityModel

Model and not know it

• Your company’s existing capabilities might be named in a standard waystandard way

Innovation:ProcessMaps Innovation:

CapabilityModel

in•no•va•tion [in-uh-vey-shuhn][ y ]

–noun

A unique activity or an established A unique activity or an established activity performed in a unique wayOrigin:Origin:

1540-50; <LL innovation- s. of innovatio).

The Capability Model ProcessMaps The Capability Model

helps facilitate business innovation

CapabilityModel

business innovation

• Capability Model helps identify areas of similarity or difference from other companies

• Gives insight into innovative ways to exploit those differences

ServiceMapsThe Component Model

ComponentModel

The Component Model provides the building blocks for your solutionsblocks for your solutions

• Components

• Service Maps

• Reusable for various insurance data transactions

Components in the Model ServiceMapsComponents in the Model

are formally defined ComponentModel

• Provide a set of irelated services

• Can stand alone or be mixed or be mixed and matched

Components in the ServiceMapsComponents in the

Model have well-defined interfaces

ComponentModel

defined interfaces

• Data is controlled by th t t th the component, not the applications that use it

• Interface is separate from • Interface is separate from implementation logic

Examples of components ServiceMapsExamples of components

and their services via SOA ComponentModel

Party Manages people, organizations and the roles they playy p y

Contact Manages addresses, contact points, territories, etc.

Product/Contract Manages policy and coverage options Product/Contract Manages policy and coverage options and the policies which we write

Insurable Object Manages information about things; h i tcars, houses, signs,etc.

Claim Manages the folder of the claim, what coverages apply

Underwriting Manages the underwriting process and its applicable data

Building the first ServiceMapsBuilding the first

environment makes the downstream projects easier

ComponentModel

downstream projects easier

=

You can create systems ServiceMapsYou can create systems

using different component combinations

ComponentModel

combinations

=e.g., Claims

Agency licensing systems ServiceMapsAgency licensing systems

may leverage many of the same components as

ComponentModel

same components as policy systems

=e.g., Agency

The environment in most IT The environment in most IT organizations is very complex

Actuarial

Policy A

Policy B

General Ledger

Policy B

Policy CAgency

InformationWarehouse

Policy D

Policy EAgency System

OperationalData storeBilling

Policy E

CRMClaimsInternal User

Assets based on a standardized component model simplify the component model simplify the

applications and the eco-system

Actuarial

Agency

General Ledger

Agency SystemInformationWarehouse

OperationalData store

Internal UserCRM

The Information Model provides theThe Information Model provides therelationships among insurance conceptsconcepts

• Ex: “Party” and “Contract”• Ex: Party and Contract

InformationModel

The Information Model The Information Model helps categorize and explain

insurance concepts• Linked to all the standards

insurance concepts

• Other facets used to ensure consistency• Ease of mapping

• Model currently contains:More than 800 classesMore than 800 classesMore than 1000 attributes

InformationModel

The Information Model is about The Information Model is about concepts, not literal implementations

• Can express ideas independently of how they are usedare used

• Concept stays consistent; you just reorganize for new formatsjust reorganize for new formats

• Designed for extensibility to accommodate future to accommodate future standards

InformationModel

Mapping creates links Mapping creates links for ease of implementation

• ACORD will map to:XML standardsXML standardsForms eLabelsOther standards and models

InformationModel

Mapping creates links Mapping creates links for ease of implementation

• ACORD mapping will link:DomainsGeographiesGeographiesFacetsStandards

• ACORD mapping saves months of work for you

InformationModel

With the Information Model, all With the Information Model, all standards can be traceable back to

the models used to create them• Consistent process for standards generation,

the models used to create them

regardless of:Type of standardD iDomainLine of business

InformationModel

The Data Model makesThe Data Model makesthe abstract more tangible

• Turns concepts from Information Model into data that can be put into databases

• Logical level persistence model

Can be used in any database implementation

Doesn’t consider data optimization t h i

DataModel

techniques

“Persistence” means “Storage”

The Data Model has many usesThe Data Model has many uses

• Create a physical data model Create a physical data model for databases

• Create data warehouses

• Map your data model to ACORD’s in order to absorb ACORD messages

• Validate your data model

DataModel

Facets of theACORD Framework

BusinessDictionary

The building

Listing and definition of things that are important

to the business.

Capability

ProcessMaps

gblocks for

insurance systems

InformationModel

p yModel Service

Maps

ComponentModelWhat insurance

i d

DataModel

companies do

Logical persistence model based on the The relationships ModelInformation Model among insurance

concepts

Using Framework Using Framework facets depends on what you are trying what you are trying to achieve

• Framework is not “all or nothing”

• Facets can be used i di id ll t t llindividually or not at all

• ACORD will use the Framework to better serve Framework to better serve members and industry

The Framework gives you the notes, The Framework gives you the notes, you write your own melody

Get InvolvedGet Involved

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