Acord sets the pace in financial services IT
In the world of financial services information technology (IT), the ACORD acronym is significant.
Based in New York with offices in London, the Association for Cooperative Operations Research and Development (ACORD) is a global, non-profit insurance association whose mission is to facilitate the development and use of standards for the insurance, reinsurance and related financial services industries. ACORD strives to be an objective, independent advocate for sharing information among diverse platforms, helping improve efficiency and expand market reach.
In South Africa, Astute FSE and financial services companies have developed globally unique applications of the ACORD model.
The ACORD standard is used to facilitate data transfer between different systems, including the Astute Consolidated Client Portfolio and Financial Needs Analysis systems, and the LOA’s policy replacement monitoring system.
In terms of the life and investments standards, Astute is the custodian of the ACORD standard in South Africa, requiring the company to liaise with ACORD in terms of specific South African requirements and the deployment of new standards in this country. ACORD is due to visit South Africa later this year for discussions on these issues.
Said Astute Managing Director Biddie Biddulph (pictured): “As an e-commerce company that transports data from one set of multiple systems (product providers) to another set of multiple systems (used by financial advisers), data standardisation is something we have a particular interest in.
“The challenge is to use technology to build relationships and enable information sharing as a new generation of customers emerges. They want to be better informed and have access to personalised products and services. They’re using the Internet for information about wealth management products and their value, driving a trend away from mass marketed products towards custom-designed offerings geared towards the individual.
“Demographic changes are resulting in the segmentation of products along cultural, socio-economic and generational lines that will necessitate a host of technological business process changes – especially since the evolution will relate not only to products, but also service delivery.”
Speaking recently at this year’s conference in Las Vegas, ACORD CEO Robert Kerzner spoke of the role of technology in securing the industry’s future, predicting that it will transform the distribution system, as well as underwriting and claims. He said technology would enable a “quantum leap” in terms of how well companies serve customers, boosting efficiency and controlling costs.
Kerzner said expectations of better and more convenient customer service would drive innovation in both technology and the industry’s culture, noting that in tough economic times like these quality of service is pivotal in terms of fostering customer loyalty.
