The ACORD Framework
An Insurance
Enterprise
Architecture
© ACORD 2011
ACORD is building the Framework
for greater efficiency
• Need for an Enterprise Architecture
• Framework streamlines standards
creation and development
• Framework provides a base for
model driven development and
maintenance of standards
• Framework better serves
ACORD members and
the entire insurance industry
© ACORD 2011
ACORD is building the Framework
for the future of the industry
• More diverse
membership
• Global membership
• Cross-Domain
membership
• Geographical
differences
• More than an
exchange format
© ACORD 2011
The Framework will save your
organization time and resources
• ACORD Framework
provides the foundation for
Enterprise Architectures
• Diverse membership
contribution
• Members can choose parts
that are best suited
© ACORD 2011
The Framework has 5 facets
© ACORD 2011
The Business Glossary contains
common insurance definitions
• Non-technical definitions
• Single business glossary to
bridge communication gaps
• Provides context across all
programs
© ACORD 2011
Business
Glossary
The Glossary relates to
the other four facets
• Glossary terms found in all
facets
• Changes made in unison
© ACORD 2011
Business
Glossary
The Business Glossary
status and delivery
options
• Originally published in 2008
• Revisions expected upon completion of
Information Model version 2.0
• HTML and PDF formats available
© ACORD 2011
Questions?
© ACORD 2011
Process
Maps
Capability
Model
The Capability Model
defines what insurance
companies do
• Baseline of a company’s
capabilities
• Individual companies
vary, but all capabilities
exist in the industry
© ACORD 2011
Process
Maps
Capability
Model
The Capability Model
presents a
standard perspective
• Does not define an ordered workflow, just reflects
the industry’s usual way of doing business
• The Model offers an organizational baseline, a
preferred approach
© ACORD 2011
Process
Maps
Capability
Model
The Capability Model
helps facilitate
business innovation
• Capability Model gives insight to areas of
similarity and shows differences from other
companies
• Companies can find innovative ways to exploit
those differences
© ACORD 2011
Claims
Capability Model includes
Process Maps
• Capability
Claims Lifecycle
Management
• Claims
• Sub Capability:
• Claims Lifecycle Management
Claims
Handling
Investigate
Claim
© ACORD 2011
• Sub-sub Capability
• Claims Handling
• Activity / Process:
• Investigate Claim
Process
Maps
Capability
Model
The Capability Model
Top Level Capabilities
• Business Management
• Claims
• Channel Management
• Finance
• Contract Administration • Marketing
© ACORD 2011
• Customer Service
• Product
• Enterprise Services
• Sales
Common Capability Model Uses
• Business Process Modeling
• Capabilities and business activities provide the
building blocks for business process automation
• Delivered in UML for ease of porting into BPM tooling
• Business Activity Reference Model
• A common model set of definitions that can be
agreed upon across the industry
• Celent used the Capability Model as the base for the
BPO questionnaire and report for 2011
© ACORD 2011
Process
Maps
Capability
Model
The Capability Model
status and delivery
options
• Version 2.1 – released May, 2011
• No major revisions expected
• Formats: Spreadsheet and UML
Spreadsheet Sample
© ACORD 2011
UML Sample
The Capability Model
History & Future
Process
Maps
Capability
Model
Year
Activity / Donation
2006
IBM (IAA process definitions)
2007
ACORD
2008
Deloitte, LLC (enterprise
support)
ACORD Publication
v1.0 Draft
ACORD Working Group
© ACORD 2011
2009
ACORD
v2.0
2010
ACORD
Capability Model Book
2011
New Content / Donations
v2.x
The Book…
• Available Now
© ACORD 2011
v2.1 Release – What’s New?
• tele-underwriting
• help desk service
• document imaging
• predictive modeling
• several claims items
• UML updates to align with Spreadsheet
Process
Maps
Capability
Model
© ACORD 2011
Questions?
© ACORD 2011
The Information Model organizes and
relates insurance concepts
© ACORD 2011
The Information Model is the basis
for Model-Driven development of
standards
• Single business model
• Consistency across all
standards development
• Provides a big picture view
of the insurance industry
Information
Model
© ACORD 2011
The Information Model helps
organize and explain insurance
concepts
• Linked to all the ACORD Standards
• Other facets used to ensure consistency
• Provides the mechanism for mapping all standards
to each other
• Model currently contains:
– More than 800 classes
– More than 2300 attributes
© ACORD 2011
Information
Model
The Information Model is about
concepts, not literal implementations
• Can express ideas
independently of how they
are used
• Not intended to describe how
to use the concepts
• Designed for extensibility
to accommodate future
standards and industry
requirements
Information
Model
© ACORD 2011
Information Model is the central
facet for mapping which facilitates
ease of implementation
• ACORD will map the Information Model to:
– XML standards (all versions)
– Forms (eLabels)
– EDI / AL3
– Other standards and models
• Members who map internal models to the
Information Model then have a semantic
link to all standards
© ACORD 2011
Information
Model
Mapping creates links
for ease of implementation
• ACORD mapping will link:
• Domains
• Geographies
• Facets
• Standards
• ACORD mappings save
time for you
Information
Model
© ACORD 2011
Common Information Model Uses
• Enterprise Reference Model
• Logical organization of like concepts
• Standard baseline for how concepts inter-relate
• Business focused
• Bridge between business and technical
• Canonical Model
• A common model for data interoperability, two
systems that refer to the concept of an Agreement but
name them differently (Contract versus Policy)
• Single source of data organization
• Needed for semantic integration
© ACORD 2011
The Semantic Hub Connects
Messages and Technology
• Information Model is
the common bridge
• Enables any-to-any
integration
• Single source of
meaning –
Information Model
ACORD
P&C/Surety
Standards
Information
Model
COBOL
Operational
Data Store
Data
Warehouse
© ACORD 2011
ACORD
Reinsurance &
Large Commercial
Standards
ACORD
Life, Annuity &
Health Standards
Java
Data Model
ESB View – Semantic Integration
• Mapping each side to
the Information Model
• ESB transforms protocols,
messages
• Use the Information
Model as the central
source
Information
Model
© ACORD 2011
MDMI View – Semantic Integration
Vocabulary
• Expressing mappings between
data interfaces in an industry
standard format – MDMI
Data
Interface
A
Information Model
Vocabulary
Data
Interface
B
MDMI
Designer
Important characteristics:
• Ease-of-use – map data
interfaces to a flat
vocabulary
• Portability – use any MDMI
run-time
OMG MDMI Standard Format
MDMI
Run-time
Data
A
Data
B
MDMI Engine
With the Information Model, all
standards can be traceable back to
the models used to create them
• Consistent process for standards generation and
maintenance regardless of:
– Type of standard (XML, eForm, etc)
– Domain (P&C/Surety, LAH, RLC)
– Line of business (Commercial, Personal, Life)
• Changes will be made to the model first, then
propagate out to the appropriate standards
Information
Model
© ACORD 2011
The Information Model
History & Future
Information
Model
Year
Activity / Donation
2008
Prima Solutions (ICBS model)
ACORD Publication
ACORD Working Group
2009
ACORD
v1.0, v1.x
ACORD
Information Model Book
IBM (IAA – BOM)
2010
ACORD (harmonization)
2011
ACORD
New Content / Donations ?
Standards Mappings
© ACORD 2011
v2.0 Beta (1-4)
v2.0 (general release)
v2.x
The Information Model top level
concepts version 1.0
Information
Model
© ACORD 2011
Changes made to v1.x releases
• PRS (Party Relationships) domain renamed to RRS (Role
and Relationships)
• Documentation cleanup
• The Role concept extended to
include Physical Objects as
Role players (Accident Vehicle
on an Claim)
• Relationship concept extended to include relationships
between any roles, not just parties
• Attribute, multiplicity and directed associations
modified where needed (limited)
Information
Model
© ACORD 2011
Compare: Contract v1.x
Agreement
Claim
ContractHeader
ContractFollowUp
Contract
Proposal
Premium
IndividualContract
GroupContract
ContractElement
ContractCoverage
ContractInvestmentVehicle
InsuredSubjectProfile
Coverage
© ACORD 2011
SubjectMatter
ContractClause
InvestmentVehicle
Contrast: Agreement v2.x
BusinessRelationship
PartyRoleInAgreement
Supervision
AgreementRegistration
AgreementDocument
Agreement
AgreementRequest
FinancialServicesAgreement
ProducerAgreement
EmploymentAgreement
CoverageComponent
ProviderAgreement
RiskAgreement
AgreementFeatureComponent
AccountAgreement
CommutationAgreement
IndividualAgreement
© ACORD 2011
AgreementComponent
RoleComponent
AgreementClauseComponent
InsuranceAgreement
Green = New Content
GroupAgreement
FrontingAgreement
DerivativeAgreement
Information Model v2.0: Scope
Delivered in: HTML, XMI, and
MagicDraw native formats
© ACORD 2011
Information
Model
The Information Model v1.x and IBM
BOM Harmonization
• Both models provide significant
content
• Neither model is the “base” for the
AIM 2.0
• Concepts, patterns, designs and
overall organization strategies are
taken from both models
• In some cases, neither model is
used and newly formed patterns,
designs, concepts and
organization strategies are created
© ACORD 2011
The Information Model v1.x and IBM
BOM Harmonization (cont’d)
• Simple methodology created and
applied
• Criteria setup and applied to
design decisions made
• Regular review sessions conducted
with both Prima Solutions and IBM
• Detailed logs created to trace
decision points and impact analysis
on both original models
© ACORD 2011
Major design changes: v1.x and v2.0
• Terminology changes:
• “Domain” replaced by “Package”
• “Sub-domain” replaced by “Subpackage”
• Management domains removed
• Management concepts combined into
appropriate subject areas
• Packages added:
• Activity, Assessment, Event, Registration
© ACORD 2011
Information
Model
Major design changes: v1.x and v2.0
(cont’d)
• Top level classes added
• InformationModelObject
• Category
• Primitive data types are contained
within the project instead of importing
UML profiles to facilitate ease of XMI
export
• Naming & Design Rules (NDR)
• NDR created per XML NDR and
content revised for conformance
© ACORD 2011
Information
Model
Some alignment points
AIM v2.0
AIM v1.2
BOM
Activity
Business Activity
Management
Activity
Legal Action
Agreement
Contract
Contract Management
Specification –
Product and
Agreement
Assessment
Claim
Claim Management
Assessment and
Condition
Claim
Claim
Claim Management
Claim
Category
N/A
Category
Common Elements
Reference
Common
Business Model
Object
Actuarial Statistics
and Index
© ACORD 2011
Some alignment points (cont’d)
AIM v2.0
AIM v1.2
BOM
Contact and Place
Contact
Contact Point and
Preferences
Place
Document and
Communication
Document Management
Standard Text and
Communication
Event
Business Activity
Management
Event
Finance
Finance
Financial Management
Account and Fund
Financial
Transactions
Money Provision
Investment
Investment
Investment Management
Goal and Need
Marketing
Marketing
Activity
Goal and Need
© ACORD 2011
Some alignment points (cont’d)
AIM v2.0
AIM v1.2
BOM
Party
Party
Party Management
Organization Management
Party
Physical Object
Object Management
Physical Object
Product Specification
Product
Specification –
Product and
Agreement
Registration
N/A
Registration
Role and Relationship
Role and Relationship
N/A
© ACORD 2011
Party
© ACORD 2011
Use
Cases
© ACORD 2011
The Information Model
History & Future
Information
Model
Year
Activity / Donation
2008
Prima Solutions (ICBS model)
ACORD Publication
ACORD Working Group
2009
ACORD
v1.0, v1.x
ACORD
Information Model Book
IBM (IAA – BOM)
2010
ACORD (harmonization)
2011
ACORD
New Content / Donations ?
Standards Mappings
© ACORD 2011
v2.0 Beta (1-4)
v2.0 (general release)
v2.x
Questions?
© ACORD 2011
The Data Model makes
the abstract more tangible
• Turns concepts from Information Model into
format that can be used for persistence
design
• Logical level persistence model
• Can be used in any
database implementation
• Doesn’t consider data optimization
techniques
Data
Model
© ACORD 2011
• Persistence = Storage
The Data Model has many uses
• Help create a physical data
model for databases
• Provide a baseline for data
warehouses
• Validate your data model
Data
Model
© ACORD 2011
Guiding Principles
• Keep the content the same as the Information
Model – traceability
• No design or optimization decisions on behalf of
users
• Use a data modeling tool instead of just UML
• Information and Data Models are always
synchronized
• Not designed for specific relational database
software applications
Data
Model
© ACORD 2011
Data and Information Model
Differences
• Same content, different formats:
– Information Model – Unified Modeling Language
(UML)
– Data Model – IBM InfoSphere Data Architect,
Computer Associates ERwin
• Different naming conventions
Data
Model
© ACORD 2011
• Added keys (big) to Data Model
• Discriminators added to resolve inheritance
structures
• Associative classes added to resolve M:M
relationships
Same Content, Different Format
Data
Model
© ACORD 2011
Same Content, Different Format
Data
Model
© ACORD 2011
Same Content, Different Format
Primary Key
Naming
Conventions
Foreign Key
Discriminator
Data
Model
© ACORD 2011
A “Key” Issue…
• UML is more free form than a data model
• Keys are a big reason why
• The model had several “key collisions” between
inherited primary keys and related foreign keys with
the same name
• We needed a way to handle this
Data
Model
© ACORD 2011
An Example
Children
Foreign
Keys
Inherited
Primary
Key
Data
Model
© ACORD 2011
Inherited
Primary
Key
The Data Model - Status
Year
Activity
ACORD Publication
2009
Publication
v1.0 (Nov.)
2010
Publication
v1.2 (April)
2010
Publication
v1.3 (July)
2010
Begin construction v2.0 based on
v2.0 of Information Model
v2.0 (July)
2011
Continue construction v2.0
based on v2.0 of Information
Model
v2.0
Re-start Data Model Working
Group for input and validation
Data
Model
HTML and Erwin formats available
© ACORD 2011
Questions?
© ACORD 2011
The Component Model
provides the building
blocks for your solutions
Service
Maps
Component
Model
• Components
• Service Maps
• Reusable for various
insurance data
transactions
© ACORD 2011
Components in the Model
are formally defined
Service
Maps
Component
Model
• Provide a set of
related services
• Can stand alone
or be mixed
and matched
© ACORD 2011
Components in the
Model have welldefined interfaces
Service
Maps
Component
Model
• Data is controlled by
the component, not the
applications that use it
• Interface is separate from
implementation logic
© ACORD 2011
Examples of components
and their services via SOA
Component
Service
Maps
Component
Model
Service
Party
Manages persons, organizations, and the roles they play
Contact
Manages contact points: addresses, telephone, etc.
Product/Agreement Manages policy and coverage options and the policies
which we write
Physical Object
Manages information about things: vehicles, houses, etc.
Claim
Manages the claim process and its applicable data
Underwriting
Manages the underwriting process and its applicable data
© ACORD 2011
Component Model : Create systems
using different component
combinations implementing common
interfaces and service definitions
=
Claim System
(Built or Bought)
© ACORD 2011
A standardized Component Model
creates a true plug and play environment
Claims
Customer Portal
Policy
Administration
Agency System
Billing
Internal System
© ACORD 2011
CRM
Facets of the
ACORD Framework
Glossary of terms used
by all other facets of the
Framework
What insurance
companies do
Common interfaces and
services definitions for
insurance systems
© ACORD 2011
The relationships
among insurance
concepts
Logical persistence
model based on the
Information Model
Using Framework
facets depends on
what you are trying
to achieve
• Framework is not
“all or nothing”
• Facets can be used
individually or not at all
• ACORD will use the
Framework to better serve
members and industry
© ACORD 2011
ACORD Framework: Status Overview
Year-Month Framework Facet
Release
2008
Dictionary
v1.0
2007
Capability Model
v1.0
2009-11
Capability Model
v2.0
Capability Model (new content donation)
v2.1
2009-09
Information Model
v1.0
2010-04
Information Model
v1.2
2011-05
Information Model
v2.0
2011
2011 - 2012 Information Model - Standards Mappings
(incremental releases)
v2.x
2009-11
Data Model
v1.0
2010-04
Data Model
v1.2
2010-07
Data Model
v1.3
2011
Data Model - initial development
v2.0
2011
Component Model - initial development
v1.0
© ACORD 2011
Questions?
© ACORD 2011
Framework Resources
Support: [email protected]
Shane McCullough
Chief Enterprise Architect, ACORD
Email: [email protected] • Phone: +1 (845) 535-6482
Cliff Chaney
Senior Architect, ACORD
Email: [email protected] • Phone: +1 (845) 535-6468
Mark Orlandi
Senior Business Analyst, ACORD
Email: [email protected] • Phone: +1 (845) 535-6478
© ACORD 2011
Two Blue Hill Plaza
3rd Floor
Pearl River, NY 10965
USA
+1 845 620 1700
London Underwriting Centre
Suite 1/3
3 Minster Court
Mincing Lane
London EC3R 7DD
United Kingdom
+44 (0)20 7617 6400
© ACORD 2011