Web Services Messaging Using ACORD standards

1
Web Services Messaging Using ACORD standards

• A Practical Implementation Viewpoint
• Steve Betts
• Chief Information Officer, Aon Re Global
• May 2006

2
Business Context

• Web services messaging using ACORD standards is
  central to Aon Re Globals trading partner
  integration strategy

Characteristics
Benefit to Aon Re Global

• Exchange of structured data
• Documents embedded in the messages or retrieved
  through embedded references
• ACORD standards cover both technical
  interoperability and business message definition

• Reduced operational costs through the elimination
  of less efficient data exchange methods
• Reduction in number of queries and other delays
  (due to improved linkage between data and
  supporting documents)
• Reduction in the number of data errors (due to
  elimination of the re-keying of unstructured
  data)
• Better services to clients faster and more
  accurate

3
Evolution of Data Exchange in Reinsurance Industry
4
Sample Message Flow

• Message flow id asynchronous except for SOAP Post
  Responses
• Same basic flow for all message types
• Placement
• Technical Account
• Claim Movement
• Settlement
• Business Acknowledgement

5
Lessons Learned Key Considerations
Consideration
Implication

• Degree of automation and integration by receiving
  party

• Some trading partners receive messages but do not
  integrate data to core systems leading to an
  erosion of benefits case

• Degree of business process change

• Business process change can be underestimated and
  can impede the implementation process

• Alignment of development and implementation
  approaches between trading partners

• A mix of waterfall and iterative approaches can
  lead to significant problems being identified
  late in the implementation process

6
Lessons Learned Challenges
Challenge
Implication

• Involvement of multiple parties (e.g.,
  involvement of an intermediary such as a
  servicing bureaux)

• Difficult to gain agreement of message content
  from all parties
• Difficult to test end-to-end message flows
  effectively

• Alignment of cross reference data and reference
  codes

• Significant data clean up required to ensure
  integrity of cross reference data
• Data load required to enable UUID references
  between transactions
• Potential for disputes and challenges when
  mapping to standard codes

• Different logical definition of a transaction
  (e.g., one invoice may map to multiple invoices
  at a trading partner)

• Creates complexity in maintaining cross
  references between transactions and complicates
  the message flows

7
Lessons Learned Enablers
Enabler
Implication

• Existence of a recognized standard and a trusted
  organization for mediation of disputes

• ACORD standard is the key enabler
• ACORD clarifies interpretation of the standard
  when required

• Support multiple versions of the standard

• Trading partners do not adopt standards at the
  same pace it is critical to support multiple
  versions

• Identify trading partners using a common IT system

• Integration work can be leveraged across multiple
  trading partners very quickly if they use the
  same IT system

• Begin testing early in the development /
  implementation cycle and conduct parallel runs
  prior to implementation (comparing results with
  the existing channel)

• Early testing helps trading partners find major
  problems early and helps them quickly understand
  the business process impact