VIDEO: Click the image to hear how ACORD is expanding around the globe.
ACORD's global expansion has set its sights on the Asia Pacific region. To promote implementation of ACORD Global Reinsurance and Large Commercial (GRLC), standards for premiums, claims and settlement within the region, ACORD has established an Asia Pacific Implementation Group.
At a recent meeting of the group, Tom Neff from Aon Benfield presented on behalf of ACORD's U.S. Reinsurance Committee about how the process works from a broker's perspective. Simon Squires from XL Insurance gave a similar presentation on behalf of the Ruschlikon Steering Group from the Insurer's perspective.
"Some attendees had limited knowledge of ACORD so before Tom and Simon spoke I gave some background on ACORD and the project globally," said Mark Barwick, ACORD GRLC Program Director. "We had an around-the-table update from attendees to establish what e-trading activity was underway, what their capabilities were and which suppliers they used. This information determines their readiness to adopt new technology." Barwick also presented an overview of the Global Reinsurance Best Practices- Accounting, Claims & Settlement, a document considered by the industry to be essential to any implementation.
Other regions such as Europe, the U.K., the U.S., and Bermuda have already adopted these standards and are seeing dramatic improvements in premium payment times, a reduction in costs and the elimination of unmatched cash. For brokers, implementation improves client service and results in a more efficient process with fewer queries. For underwriters, it saves back-office costs. The goal is for the Asia-Pacific region to implement the standards to stay competitive with other reinsurance hubs around the world.
"So it's an improved process for everybody, really," Barwick concluded. "This is a proven process, and it's vital that Asia Pacific, which is a rapidly growing region, adopts these standards now to ensure it's well positioned to service the region going forward."
The group is continuing to investigate the best way to serve the APAC region, given its enormous size. ACORD staff will author a paper to address the issue for the next meeting in February 2013.