Winning With a New Mind-set
Facing the Demands of Change
On the eve of the inaugural ACORD LOMA Insurance Systems Forum in Las Vegas, Greg Maciag, CEO of ACORD (Pearl River, N.Y.), and Thomas P. Donaldson, president and CEO of LOMA (Atlanta), discuss the changing business and technology environments affecting their memberships, and how the new conference can help in this effort.
Greg Maciag, ACORD
Thomas Donaldson, LOMA
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What challenges are your members facing in adapting to a multichannel strategy for sales and service?
Maciag: Customers want digital access when that makes sense and it's convenient, but they also want more personal assistance at times, as well. The challenge is to provide a multi-channel distribution network to sell and service a variety of products to meet the needs of customers today and tomorrow. Personal relationships will continue to be important in our business as technology improves our ability to service a customer looking for quality, speed and access anytime, anywhere. Information technology has never played a more critical role in our business than it does today. IT is inextricably woven throughout the fabric of the firm. And the people attending the ACORD LOMA Insurance Systems Forum face the daunting challenge across the entire insurance value chain.
To be more specific, real-time transactions, Web services, platform integration, data standards and a host of other subjects play into this space and will be discussed at the show. ACORD industry data standards support access to information anywhere it resides. It also enables choice. ACORD currently has more than 240 solution-provider members that have, or are in the process of implementing, ACORD standards. This means insurance companies can choose from among best-of-breed solutions rather than having to build or get locked into proprietary solutions that don't play well in an interconnected marketplace.
What are the most important technology issues insurers should consider in order to achieve regulatory compliance in the most timely and efficient manner?
Maciag: We have been working with the NAIC and other regulatory agencies for quite some time to be sure that data-related decisions embrace data standards. Sarbanes-Oxley, for example, pressures members to achieve greater data transparency. So by working with the AICPA's XBRL accounting data standards and the NAIC, we can leverage the transaction-level standards we have in place to support more transparent financial reporting.
Donaldson: One of our members' top concerns is compliance, specifically regarding identity verification/know-your-customer legislation and Do Not Call issues. These can be tricky to manage, and LOMA has done some homework to help our membership deal with these issues. The cost of compliance can be crushing, so we are watching the scene, communicating news and helping our membership become more informed in how to efficiently deal with compliance issues. Technology is part of the solution - we have partnered with companies who are in the business of providing technological solutions to compliance issues, and so can provide these solutions to our membership at a reduced cost.
What was the rationale for proceeding with a combined ACORD/LOMA event? What are the advantages to attendees of a combined event?
Maciag: One reason is that there are too many conferences that deliver the same content and market to the same people. It does not make sense for two industry associations to produce a similar technology conference one month apart. Everyone loses. The merger allows our members and exhibitors to spend their money more wisely. We now offer a bigger event with more to see, more sessions and a greater presence of talent that increasingly must cross domains and channels (distributors, vendors, life insurers, P&C insurers, reinsurers, etc.). We all save money and we all get more. We all win.
Another reason is that ACORD was formed by the insurance industry in 1970 to provide the data standards for moving and sharing information electronically. And like any standard, its value increases exponentially as the number of insurers that adopt the standard increases. And as we now live in a networked world (made available by standards, by the way), we need to find better ways to access, share and move information throughout our business. ACORD's thousands of members, participants and subscribers expect us to reach out to as many organizations as possible (members and non-members alike) so they also can benefit from the standards movement in our business.
Building closed proprietary systems that are not customer, marketplace or community friendly (from an integration perspective) should not be something that needs to be advocated. Yet it does, primarily because people can and do make uninformed decisions because they lack information on what is available, what is possible and what others are doing with ACORD standards. Therefore, reaching out to a large and more diverse audience is a key ingredient to the mission of ACORD.
Donaldson: The LOMA Systems Forum was created in 1965 and hosted more than 25,000 insurance and technology executives, making it one of the most successful and respected shows in the industry. During the past few years, LOMA and ACORD recognized synergies and a common vision with our conferences. It made sense for the two associations to join forces to create a unique conference that will provide the industry with the most comprehensive education, networking and information-sharing opportunities. The ACORD LOMA Insurance Systems Forum will have more sessions, a larger exhibit hall and greater opportunities for networking.
What are some of the key issues the show will address in Las Vegas?
Maciag: We always provide our members with information on the latest developments across all standards and domains. So, many of our sessions will be presented by members who are actually implementing or using published standards. In addition, we will talk about industry trends, Web services, business process outsourcing, distribution management, and the rating agency view of technology and standards, to name just a few topics.
Donaldson: The ACORD LOMA Insurance Systems Forum will showcase strategies to break through the barriers of change and take advantage of today's business and technology solutions. Attendees will hear about the latest technology issues that drive our business: security, applications, distribution, outsourcing, regulation and many more. Financial services experts will share their successes, challenges and insight on the future of the industry.
What has been achieved by your organizations and their members over the past year, and what challenges and objectives will you concentrate on during the coming year?
Maciag: ACORD participation has expanded dramatically over the past few years because the industry is eager to deploy data standards for all the reasons cited above. We now service life, non-life, reinsurance, surety and large commercial in all distribution channels here and in many parts of the world. Last year, the Board of Directors undertook an organizational review and published a strategy report (available at www.acord.org). We are now embarking on a three-year program of changes to our infrastructure (systems), personnel, standards-setting process and member services. Our goal is to better service an increasingly diverse membership expecting more support and services as they adopt and implement ACORD standards in various parts of their organizations around the world. Like any organization, our members are our customers and they expect more from us.
Donaldson: Since LOMA was founded in 1924, we have witnessed changes in the industry, but few would doubt that the potential for change is greater now than ever before. There is the baby boom retirement, Generation X coming into their earning years and Generation Y on the horizon to demand quicker, better, cheaper in terms of products, in our industry and others. Financial services companies are rallying to meet the needs of all of these customers and to work with them in unique ways. To do that, companies must stay up to date on compliance, technology, operational and human resource issues with employees who are educated on our industry. LOMA's mission remains the same: to be in partnership with our member companies to provide solutions for improving their operations and efficiencies so that they can meet the needs of their customers. Our designation, Fellow, Financial Services Institute (FFSI), is an example of how we responded to the needs of our membership and created a program that provides broad-based financial services education.
Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio
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