STRIDE Newsletter March 2011
STRIDE Project
The Short Term Insurance Data Exchange (STRIDE) is an initiative by members of the short term insurance industry’s product providers (SAIA) and intermediaries (FIA) that will provide a secure method of transferring underwriting data, primarily between insurers and intermediaries.
STRIDES’s mission is “to create a sustainable and trusted insurance industry that facilitates informed risk taking to all stakeholders in the insurance value chain, by defining the rules of engagement for data and process interchange and an electronic connectivity capability that is based on a South African ACORD messaging standard and global best practices, ultimately benefiting the consumer.”
The ILAA (Insurance Laws Amendment Act) (Sec 48A) at the moment stipulates that an insurer may insist on receiving the data on the risks for which it is on cover, from its appointed “Binder Holders”. The FIA and SAIA, representing intermediaries and insurers, identified the intention of the legislator and in order to facilitate participating members being ready to accommodate the requirements, formed STRIDE. At the same time, STRIDE will assist the industry as a whole to address certain inefficiencies in the market.
The electronic interchange of data is a system whereby information can be easily moved from one source to another and is able to overcome incompatibility issues. This type of environment could be a strategic advantage to your company through various benefits:
· Cost saving
· Data accuracy
· Speed of delivery
· Business efficiencies – process more transactions in less time with less errors
· Enhanced partnerships
· Improve operational efficiencies by tracking the status of a transaction and measuring performance throughout the process
Important factors to keep in mind when planning to integrate with the STRIDE platform are cost in time and money for initial set-up and changes to existing business processes.
The next step for the project team is to finalize all legal matters and start the project planning and initiation phase with Astute, read more about this in our next newsletter.
Vendor Selection
It is with great excitement that we announce the selection of Astute for the development of the technical solution required to realise STRIDE’s objectives.
The Financial Services Exchange, trading as Astute, was launched in April 2000 as a collaborative service between members of the previous Life Offices‘ Association of South Africa (LOA), now part of ASISA (Association of Savings and Investments SA), which recognised the need to establish an electronic data exchange for the long-term insurance industry.
In 2007, the company’s mandate was extended and its services became available to member companies of LISPA (Linked Investments Service Providers Association) and the ACI (Association of Collective Investments). Both associations are now also part of ASISA. In 2008, Astute became the preferred provider of various ASISA Registers.
Biddie Biddulph, Managing Director of Astute commented: “We are delighted to have been appointed to develop the technical solution that is required to facilitate informed risk taking amongst stakeholders in the short-term insurance sector.
“In terms of the new Act, insurers need to ensure they have full access to client data, including data captured on the external platforms of intermediaries to whom they often outsource various functions. As a result, there is a need to integrate insurers’ and brokers’ processes to ensure the consumer’s best interests are served. We look forward to being of service in this regard.”
Astute’s Consolidated Client Portfolio system facilitates the integration of financial data by giving some 19 000 financial advisers, who have their clients’ consent, online, simultaneous access to policy and investment information at life offices and investment companies.
The company also operates systems to manage policy replacements, and for risk management in the claims and underwriting processes. Astute, whose brand is well known, has become a strategic partner in terms of industry technology solutions.
SA ACORD AML Standard
ACORD, an international not-for-profit association based in the USA, sets worldwide data and systems communication standards aimed at improving the exchange of data across diverse technological systems and platforms. The organisation serves the insurance sector and related financial services industries globally. Members include hundreds of insurance and reinsurance companies, agents, intermediaries, software providers and industry associations throughout the world. The ACORD standard is recognised by all major system providers.
Standardising the way data is transferred will streamline the communications process and ensure the smooth flow of information between industry stakeholders such as intermediaries, insurers, underwriters, service providers, financial institutions, regulators and government. Furthermore, once implemented, a single set of data communication standards will lead to cost effective delivery mechanisms that will improve the products and services to the benefit of policyholders.
ACORD plays an integral role in the STRIDE project, as they will be responsible for all the data and message standards across the industry.
To date, the groups have completed the Commercial and Personal lines standards including:
* Personal Vehicle
* Commercial Vehicle
* Personal Property
* Commercial Property Watercraft
* Liability
* Accident
Next in line for ACORD Standards Development for the South African market is Claims with Claims Status being the first message tackled.
"The rapid development and implementation of ACORD's Standards for South Africa is an accomplishment that all of us in the market can be proud of but it's not the end. Now, it's time for brokers, insurers, and solution providers to get the Standards tested and implemented so we can all reap the rewards," said Alan Stitzer, ACORD Program Manager (AU, ZA). "By sustaining and even growing the level of commitment from brokers and insurers of all sizes, we can be sure that the implementation will go well and that we'll achieve our goals."
