A group of solution providers (Superior Access, ChoicePoint) and a venture capital firm (Pequot Ventures) are coming together to create an electronic insurance exchange. A solution for moving information between brokers and insurers that would eliminate redundant data entry. The center of gravity for this effort has been the CIAB (Council of Insurance Agents & Brokers).
The idea is not new. Past efforts have failed for one reason or another, but the organizers claim that they have a better mouse trap. You can read the details in the Leader's Edge, December 2006 issue "In Search of Brokers Holy Grail".
Redundant data entry has plagued our business for decades, hence we created ACORD Forms. Transporting the data electronically was also difficult when using proprietary insurer systems. That's why we created the ACORD Data Standards, AL3 for EDI Download and now XML. And we're now merging the ACORD Forms with electronic messaging capability to provide yet another tool for eliminating friction.
But the real value of industry standards can only be realized when organizations creating software and online services "bake" those standards into their offerings. Nobody adopts standards for the sake of adopting standards, they must be part of larger deliverables. Agents and brokers created ACORD back in 1970 and their job is not done. We still have too many proprietary insurer forms and websites. So I am pleased to see them hard at work looking for better mousetraps. I think we need more of this kind of proactive industry leadership.
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