ACORD Reference ArchitectureCapability Model Universe
Pat Corless, Chief Enterprise ArchitectRana Dhariwal, Reference Architect
What is ACORD Capability Model
How to Use the Capability Model
How ACORD Assets are Integrated
Agenda
Reference Architecture
The Seven Components
• Information Model
• Data Model
• Business Glossary
Data Oriented
• Capability Model
• Process Framework
• Component Model
• Product Framework
Process Oriented
Capability Model
4000 years of historyCode of Hammurabi Athenian Maritime Loans
Medieval Guilds Life Insurance
Cities Burn, Property/Fire
Modern Marketplace, Reinsurance
Lines of Business varieties
Cyber
Body Parts
Hole in One
Alien Abduction
Business Management
C
a
p
a
b
i
l
i
t
i
e
s
Product
Marketing
Sales
Financial Services Agreement
Administration
Claims Administration
Enterprise Services
Finance
Channel Management
Customer Service
Carrier
High Level Capabilities
1
2
3
4
5
6
7
Simulate Loss Projections
INSURANCE
Manage Policy Transfers
Verify Marketing Collateral Compliance
Apply for Insurance
Bind Coverage
Manage Customer Retention
Perform Claims Statistical Reporting
Analyze Reserves
Analyze Reinsurance Requirements
Product Design
Compliance Management
Financial Services Agreement
Issuance
Claims Handling
Reinsurance Management
Regulatory Management
Financial Reserve Management
Producer Support
Customer Interaction
Management
Financial Services Agreement Acquisition
ProductProduct Development
Product Design*Product Implementation
Details
Level0 Level 1 Level 2 Level 3
Reference ArchitectureThe Seven Components – Capability Model
Information Model
DataModel
Business Glossary
Component Model
Capability Model
Process Framework Product
Framework
USERS/
ECOSYSTEM
ENTERPRISE/
SAAS
CLOU
D
CUSTOMER EXPERIENCE
BUSINESS MICROSERVICES (CBM)
INTELLIGENT INSURANCE
WORKFLOWS
DATA SOURCES & APIs
COGNITIVE SOLUTIONS
HYBRID
CLOUD
SUPPORTING APPLICATIONS
CORE APPLICATIONS
INSURERS UTILITY WORK
DATA LAKE
DATA AND AI
ENTERPRISE
USER
DIRECTORY
EDGE
GATEWAY
API
MANAGEMENT
OBJECT
STORAGE
EDGE
SERVICES
TRANSFORMATION
& CONNECTIVITY
ISVsUNDERWRITINGCLAIMSPOLICY
ADMINISTRATION
CUSTOMER
RELATIONSHIP
MARKETING FINANCE
$ACCOUNTING
CLAIMS
MICROSERVICESPOLICY
MICROSERVICES
UI
MICROSERVICES
COMMUNICATIONS ASSISTANT DISCOVERY
SERVICES
MARKETING FINANCE
$DATA
VIRTUALIZATION
KNOWLEDGE
CATALOG
WATSON
STUDIO
CUSTOMER
DATA
CLAIMS
DATA
MEDICAL
DATA
CUSTOMER
APPLICATION
USERS
CLAIMS
ADJUSTOR
VENDORS/
PARTNERS
VISUAL
INSPECTOR
HOME
CAR
MACHINE
LEARNING
FRAUD
DETECTION
REAL-TIME
INSIGHTS
EVENT
STREAMS
MULTI CLOUD
MANAGEMENT
CLAIMS
NOTIFICATION
3
WATSON
OPENSCALE
GRC
UI
FLOW
CUSTOMER
ACQUISITION
BUSINESS
RULES
VMWAREOPENSHIFT
SECURITY
INFORMATION
& EVENT
MANAGEMENT
ENCRYPTION AUTHENTICATION INSURANCE
SECURITY &
COMPLIANCE
FRAMEWORK
+
ARTIFICIAL INTELLIGENCE
ECOSYSTEM PARTNERS
BLOCKCHAIN
NETWORK
CREDIT
DMVMEDICAL
RECORDS
PEER
CLOUD
CLAIMS
PAST
CLAIMS
Application
Users
Data orien ted se rvi ce
LEGEND
Dis cove ry se rvi ces
Ana lytics
Security
Se rvi ce mana gement
Mana gement
Bloc kchain
How Do I use the Capability Model?
• Capability Model as a Checklist
Helps organization understand its capability versus the insurance industry.
Lets you compare processes and systems and organization
Lets you see redundancy and Gaps in application portfolio
Lets you align resources with operational functions
Lets you define Business Architecture blueprint of your business.
Capability Model Uses
• Marketing Execution• Lead Management
• Sales Planning• Prospect Acquisition
Financial Services Agreement Lifecycle Management• FSA Issuance
Prospects
Leads
Customer
Marketing Sales
Policy Administration
Capability Model Uses
Are you going thru…
Merging or
Acquiring Systems
Are you…
A Startup
Do you know all the functions required to align Business and Technology?
• Marketing Execution• Lead Management
• Sales Execution• Provide Quote
Financial Services Agreement Issuance
Financial Services Agreement Acquisition
Financial Services Agreement Change Management
Prospects
Leads
Customer
Marketing
Sales
Policy Administration
SubmissionProspectingAppetite RulesRisk Qualification
QuotationRisk AssessmentRatingProposal
Accept Coverage Bind Agreement
Issue Policy
Endorsements
Capability Model Uses
How Do I use the Capability Model?• Organizational Alignment
Comprehensive Checklist that can be used as organizational principle for mapping departments and functions.
Enables stakeholders to understand how things fit into the operation.
• Aligning Applications with CapabilitiesArchitecture mapping that enables the alignment of the business needs
with the Systems (IT) solutions.
Capability Model Uses
Organizational Tool
Capability Model Uses
CEO
FinanceClaimsUnderwritingStrategy
Define Claims Strategy KPIs Define Marketing Strategy for Loss Control Services
Define Sales Strategy
Administer Invoicing
Manage CollectionsInvestigate Claim
Settle Claim
Apply for Insurance
FinanceMarketingClaims Sales
Provide Quote
Investigate Claim
Settle Claim Administer Invoicing
Manage CollectionsDefine Marketing Strategy for Loss Control Services
Apply for Insurance
Provide Quote
Define Claims Strategy KPIs
Define Sales Strategy
Marketing
Perform Pricing
Analysis
Manage Event
Marketing
Perform Sales
Research
Provide Quote
Conduct Product Market Analysis
Define Product Profile
Product
Sales
Application Mapping
Capability Model UsesMarketing Strategy
BI Tool (Mktg. Domain)
Marketing Planning
ADOBE Planning
Sales Strategy
Web Analytics
Sales Execution
Sales Pro
Product Strategy
BI Tool (PD)
Product Development
Product Pro (NPD) Tableau
Google Analytics & Spring Metrics
Tableau
ACORDInside Standards
& Architecture
Life & Annuity Inforce TransactionsACORD’s Categories of Assets
Data in MotionData at Rest
ACORD AssetsACORD’s Categories of Assets
ACORDInside Standards
& Architecture
Life & Annuity Inforce TransactionsACORD’s Categories of Assets
ACORD Messaging Standards (Data in Motion)
• These all describe insurance data being moved and transformed between or within insurance entities
• EDI (P&C AL3, L&A)
• XML (P&C, L&A, GRLC, Asia/Pacific)
• Burgeoning Next Gen Digital Standards, MicroServices/API (cross domain)
ACORD Reference Architecture (Data at Rest)
• Hypothetical insurance carrier as a snapshot
• What does its data look like (Information Model and Data Model)?
• What do its processes look like (Capability Model, Process Model, Component Model)?
• How would you describe what it sells (Product Framework)?
• What terms are used (Business Glossary)?
ACORD Forms (Data on “Paper”)
• These are 850+ standardized arrangements of data used for communicating particular business transactions
• Originally paper
• Now PDF, fillable PDF, and eForms too
ACORD AssetsACORD’s Categories of Assets
ACORDInside Standards
& Architecture
Life & Annuity Inforce TransactionsReference Architecture to Standards Framework
Capability Model
Capability + Process
Process Framework
Capability + Process + Activity
Data ModelEntity + Attribute
Information Model
Class + Property
Product Framework Ingredients of Products
Business Glossary
Terms + Acronyms
ComponentModel
Capability + Information
Reference ArchitectureProcess Facets
Reference Architecture Data Facets
Messaging Standards
1. P&C, L&A, GRLC, AML2. EDI, XML, Digital
Standards
Stores information
FormsOver 800 forms
ACORD Data Standards
Serves capability
Reference Architecture to Standards Framework
Messaging Standards provide a Business Capability and is aligned to our Data Facets as a common basis for the insurance industry.
ACORDInside Standards
& Architecture
Agent,Owner,Etc.
Portal or platform
Carrier
Policy Administration System
Life & Annuity Inforce TransactionsUser Story
Inquiry
Infrastructure
Financial Services Agreement AdministrationFinancial Services Agreement Lifecycle ManagementFinancial Services Agreement Inquiry
CRM System
Life & Annuity Inforce Transactions
Agent,Owner,Etc.
Carrier
Policy Administration Inquiry115
As an Agent, I need to search for policy status and beneficiaries for a particular insured and their associated policies to handle calls related to policy changes
As a carrier, I need the ability to pull a list of policies linked to a broker/dealer. As a carrier's back office associate, I need the ability to pull policy information linked to a specific insured .
Insurance Contract• Policies• Coverage• Payments
CRM• Insured• Beneficiary• Agents
The process of providing information about the status of an financial services agreement.
The process of providing information about the status of activities related to handling a financial services agreement.
Policy Administration Inquiry
Financial Services Agreement Inquiry
ACORDInside Standards
& Architecture
Agent,Owner,Etc.
Pers Auto Policy Full Image Notify
Carrier
Policy Administration System
Life & Annuity Inforce TransactionsUser Story
Inquiry Results
Property and Casualty TransactionsPolicy Administration Inquiry
As an Agent, I need to search for policy status and coveragefor a particular insured and their associated policies to handle calls related to policy changes
As a carrier, I need the ability to pull a list of policies linked to a broker/dealer. As a carrier's back office associate, I need the ability to pull policy information linked to a specific insured .
Financial Services Agreement Inquiry
NGDS TransactionsPolicy Administration Inquiry
Agent,Owner,Etc.
Query Results
Publishing Network
Retrieve Policy Cash Values
Retrieve Auto Policy
Retrieve Policy Insured(s)
Retrieve Policy Maturity Date
Retrieve Auto Extension Eligibility
Retrieve Certificate Holders Request
Verification of Insurance Coverage
Financial Services Agreement Inquiry
Principles/Universe of Capability Model• Product Strategy• Channel Strategy• Marketing Strategy• Sales Strategy• Policy Administration Strategy• Claims Strategy
• Marketing Execution• Channel Execution• Sales Execution• Policy Administration • Claims Lifecycle Management
• Product Planning• Marketing Planning• Channel Planning• Sales Planning• Claims Planning
• Product Portfolio Management• Marketing Effectiveness
Management• Producer Management• Sales Effectiveness Management
Effectiveness
Execution Planning
Strategy
Consistently Review, Adjust and Modify
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