1. Introduction of Global Data Standards for Finance & Insurance

2. 2  Copyright ACORD Corp. What Are Data Standards?  Definition: Standard (n.) “Anything recognized as correct by common consent, by approved custom, or by those most competent to decide; a model; a criterion.” -- Webster’s New Universal Dictionary

3. 3  Copyright ACORD Corp. Type of Standards  Official vs. De Facto Standards  Open vs. Closed Standards  Horizontal vs. Vertical Standards

4. 4  Copyright ACORD Corp. Standards: Business Drivers Fueling International Interest  External:  Globalization  Convergence of Financial Services  Customer Centric Marketplace  E-Business Expansion  Wholesalers  Portals  Direct  B2B service providers  Internal:  Multiple product lines  Expanding distribution channels  Mergers/Acquisitions  Reduction of time to market  Shrinking IT Budgets  Survival

5. 5  Copyright ACORD Corp. Standards in Chinese Insurance Industry  Standardization of Regulation  Expansion of overseas operations  Interaction with Foreign Insurance Companies  China’s entry into WTO  Expanding Product Lines

6. 6  Copyright ACORD Corp. Agent/ Producer Insurance Carriers Regulatory Authorities Service Providers Insurance Agency Reinsurer Claims Management Applications Auditing Regulatory Compliance Payment transactions Premium transactions Broker/Insurer Ins/Reinsurer Claims Submission Need for collaboration

7. 7  Copyright ACORD Corp. Benefits of Data Standards Agent/ Producer ` Insurance Carriers Regulatory Authorities Service Providers Insurance Agency Reinsurer Claims Management Applications Regulatory Compliance Payment transactions Premium transactions Broker/Insurer Ins/Reinsurer Claims Submission STANDARDS & IMPLEMENTATION Auditing

8. 8  Copyright ACORD Corp. Components of Data Standards  Data Dictionary  Object Model  Relationships  Code Lists

9. Imact of XML on Data Standards  ‘Extensible Markup Language’  Not a technology tied to any particular platform and vendor  STANDARD developed by  ‘Extensible Markup Language’  Not a technology tied to any particular platform and vendor  STANDARD developed by

10. 10  Copyright ACORD Corp. Party_1Gallo, Joseph M. 30350892145 Ohio 1USA1Home108 Dawson St PhiladelphiaPA 19130 USA Joseph Michael Gallo 2 Single 1Male 1965- 04-22 Hard to read Rigid Versioning problems Fixed Length Record (EDI) Example

11. 11  Copyright ACORD Corp. Gallo, Joseph M. 303508921 Ohio USA Home 108 Dawson St Philadelphia PA 19130 USA Joseph Michael Gallo Single Male 1965-04-22 SelfDescribing Structured Extensible XML Example

12. 12  Copyright ACORD Corp. Messaging Standards  Definition: Messaging (n.) “Loosely- couple atomic transaction between systems or trading partners.”  Business Messages are Technology- Neutral  Business “Message” vs. “Process”  Enables “Straight-Through Processing” (STP)

13. 13  Copyright ACORD Corp. STP Example: “First Notice of Loss” Message Customer Producer Insurance Carrier Insurance Carrier Value- Added Network Value- Added Network Reinsurer Third- Party Admin. Third- Party Admin. Regulatory Compliance Regulatory Compliance Statistical Reporting Statistical Reporting Claim Reported Loss Repaid

14. 14  Copyright ACORD Corp. Framework Standards  Definition: “Architectural platform upon which Messaging Standards are Implemented.”  Type of Frameworks  Open  Closed  Examples:  EbXML  SOAP  XP (W3C)  MQ Series (IBM)  BizTalk (Microsoft)

15. 15  Copyright ACORD Corp. Horizontal Standards: Examples  ISO (Int’l Standards Org.)  ISO 11179 – “Data Elements”  ISO 8601 – “Time & Date Formats”  W3C (World-Wide Web Consortium)  HTML – “Hyper-Text Markup Language”  XML – “eXtensible Markup Language”  ebXML (UN/CEFACT + OASIS)

16. 16  Copyright ACORD Corp. Vertical Standards: Examples  HRXML – “Human Resources XML”  XBRL – Financial Reporting (Accounting)  SwiftML – Retail Banking

17. 17  Copyright ACORD Corp. Property & Casualty (General Insurance) Personal Lines Commercial Lines Surety Property & Casualty (General Insurance) Personal Lines Commercial Lines Surety Life Annuities Health Disability Investments Life Annuities Health Disability Investments Banking and Securities Regulatory Reinsurance Common Data Models Multiple Distribution Channels Common Data Models Multiple Distribution Channels Human Resources Accounting No Industry Exists in a Vacuum

18. 18  Copyright ACORD Corp. Vertical Standards – Insurance Industry Examples  Life Insurance  ACORD XMLife (U.S.A.)  ORIGO (U.K.)  CLIEDIS (Canada)  P&C (General) Insurance  ACORD XML for P&C (U.S.A.)  eEG7 (Europe)  Polaris (U.K.)  Reinsurance  ACORD “JV” (Europe)

19. 19  Copyright ACORD Corp. Who is ACORD?  Independent and Objective Association  Serving the Industry since 1970  Facilitating Industry-Driven Standards (Carriers, Agents, Solution Providers, Associations)  Not For-Profit Corporation  Anti-trust Exemption

20. 20  Copyright ACORD Corp. Evolution of... 1970’s Forms 1980’s AL3 1990’s AL3 Implementation 2001 + Convergence, Global, Reinsurance 1998 XML 1996 Life Standards

21. 21  Copyright ACORD Corp. Standards Supported  Life Insurance  Life  Annuities  Disability  Investments  Group Life  Reinsurance  Global Object Model XML Forms  Property & Casualty  Personal Lines  Commercial Lines  Surety EDI XML Forms  Joint Venture Reinsurance  P&C Reinsurance  Large Commercial Lines  Global EDI XML

23. 23  Copyright ACORD Corp.  Global Standards Committee  Mission, Policy & Arbitration  Steering Committees  Approve & Prioritize projects  P&C  Life  Reins/ Global Commercial  Subcommittees  Develop Standards  Members vote  Life, P&C,Reinsurance, Forms  Working Groups  Implementation guides  New transactions The Standards Process

24. 24  Copyright ACORD Corp. 0100200300400 2000 1999 1998 1997 2001 YTD * 405 Member Growth - Carriers and Solution Providers * As of August 2001

25. 25  Copyright ACORD Corp. Membership Profile  P&C Carriers  Life Carriers  Reinsurers  Agents/Brokers  Suppliers See www.ACORD.org for most current membership listing  Trade Associations  User Groups  Financial Services Org.  Risk Managers  Service Bureaus  Lab Companies

26. Global Reach P& C Insurance P& C Insurance Reinsurance Reinsurance Life Insurance Life Insurance New Opportunities New Opportunities 26  Copyright ACORD Corp.

27. 27  Copyright ACORD Corp. Standards Cooperative Approach

28. 28  Copyright ACORD Corp. Cooperative Standards Process Workflow Analysis Standards Atlas Determine Overlap and Opportunity Identify Strategic Alliances Develop Plan for Common Model / Transactions Merge/ConvergeHarmonizeEnhanceBuild New Detailed Plan of Single View

29. 29  Copyright ACORD Corp. Alliances and Relationships Harmonized Standards ACORD Standards  Hr-XML  DTCC  CSIO (Canadian Standards)  ANSI X12 - mapped Life Reinsurance  EDIFACT (D9)  EEG7 (Western European EDIFACT Insurance Group)  IFX (Interactive Financial Exchange)  Life Office of South Africa  RIMS  CLIEDIS  Joint Venture Reinsurance  MIB  NAILBA

30. 30  Copyright ACORD Corp. +1 845 620 1700 World Headquarters: One Blue Hill Plaza 15th Floor Pearl River, NY 10965 USA London offices: LUC - Suite 1/6 3 Minster Court Mincing Lane London EC3R 7DD UK +44 207 617 6400 Brussels offices: Regus Schuman Rond-Point Schuman 6/5 1040 Brussels Belgium +32 2 234 63 67 WWW.ACORD.ORG