People and companies have a lot in common. Each is unique in its own way, yet at the core, share many similarities. After all, even identical twins have distinctive qualities.

From a physiological perspective, the human heart pumps blood to keep us alive, and this holds true no matter who or where you are. Technologically, it's the same. Our business systems are the hearts of our organizations, and that “blood” flowing is data. From Boston to Beijing and Lincoln to London, we see the similarities across the value chain as well as those things that make us unique.

Therefore, since we share so many data commonalities, we all can leverage standards to enhance our capabilities.

Over the years, ACORD has been busy working with existing, new, and potential members and with other standards organizations around the world. We've discussed the value of standards to improve data communication internally, locally, and internationally. And they've helped identify those requirements that make them unique for their region.

For many, standards are not a new concept and have been implemented for years within their specific geographies. Therefore, the globalization of standards themselves will vary by region and by past experience and expertise. ACORD has talked to many of these standards organizations to find commonalities to help cross-border communication.

In today's world, all companies are impacted either directly or indirectly by globalization–from vendor selection to trading partner choices. This creates a need for standards that span the globe. So, while a regional domestic company may think it doesn't need international standards, it turns out it will when it wants to place reinsurance or work with a trading partner that has international presence and uses an international standard, such as ACORD's. Standards increase options and opportunities.

We've determined from work with members and participants around the world that their core business often is the same. No matter where, the same core needs such as speed, competitiveness, and communication exist. They also have business partners who want to implement connections rapidly and inexpensively. To do that, they need data standards.

At the same time, we recognize different regions have unique needs for such things as taxation, regulatory requirements, and specific product or distribution needs. These factors, however, impact less than 10 percent of the overall standard, indicating today's ACORD standards meet a majority of their needs, regardless of location.

We've also talked to regulatory bodies and examined how ACORD standards can help companies comply with increasing reporting requirements. Regulators need accurate, efficient, and transparent data.

By implementing ACORD standards, companies in different regions can leverage existing work while helping us identify those unique requirements for their specific region. Their input will help us further expand and define the standards of the future.

We've listened, learned, and we're putting this knowledge into action.

Recently, ACORD released “The Impact of Standards on the International Regulatory Landscape,” an analysis of international regulatory activities around the globe and the ways standards can potentially assist companies in meeting some of these different requirements. It also delved into the need for companies to utilize data from diverse sources as they internationalize. For example, a company may be domiciled in one country but have operations across the globe and need to aggregate and analyze this data.

The industry itself recognizes the need for increased data quality and consistency. The International Association of Insurance Supervisors (IAIS) Core Principles highlight the need to “enhance the transparency and comparability of insurers worldwide, to the benefit of consumers, the industry, investors, and other interested parties.”

As the international regulatory community responds to changes in data requirements and in the marketplace, data standards also need to change in response to this new environment. In fact, without strong and consistent data standards, the insurance industry will not be able to meet efficiently the demands placed upon it by its participants, partners, and regulators.

From a membership perspective, we've seen increases in interest and membership from many countries. New companies as well as existing members are driving an enterprise view of standards across their international operations. We have a global industry with core requirements, and they all can leverage global standards such as ACORD's to improve data communication while maintaining uniqueness.

We now have members in the U.S., London, Bermuda, the EU, India, China, Asia Pacific, Australia, Canada, and South Africa, and that membership continues to grow.

So the question is, why now? Why such an increased interest in globalization of ACORD standards?

For one, there is the increased organic growth of companies as well as growth through mergers and acquisitions resulting in expanded reach across borders. Technology has made it easier to expand further than ever before. The Internet, video conferencing, and many other factors bring our global insurance community closer together.

In addition, there's an increased interest by companies taking an enterprise view of their organization–from an underwriting, risk exposure, reinsurance, or customer perspective for various lines of business and geographies. They want cost efficiencies and can no longer operate in business or geographic silos. This requires global standards such as ACORD.

There's also the opening of new markets and more countries joining the World Trade Organization (WTO), bringing them into the global fold. In fact, when it comes to standards, the WTO itself “encourages members to use existing international standards for their national regulations, or for parts of them, unless their use would be ineffective or inappropriate.”

It's a new world, full of new opportunities and new competition. At the core is data–and the need for standards. What this means is ACORD also is changing, adapting, and growing in breadth to meet these needs.

This increased diversity in membership has brought a new way of looking at our standards. Many members support multiple lines of business in multiple geographies. One way ACORD has responded is through the ACORD Messaging Library (AML) initiative, which unites once-siloed standards. Where previously there was a different way to perform the same activity for each domain, now, where appropriate, the same message will be used across products and geographies.

A recent letter from the ACORD Standards Committee discussed the need for unifying messaging where appropriate, saying: “One business message may be specific to one portion of the industry (i.e., obtain life insurance policy quote OR issue commercial auto policy) or have cross-industry relevance (i.e., change name). The resulting business messages will ensure consistency regardless of process, product, or geography.”

Since 1970:

o We've grown through technological change.

o We've grown through increasing membership.

o We've grown through expansion into multiple lines of business.

o We've grown from new ideas and innovations.

o We've grown from expanding global participation.

o We've grown through implementation of standards.

And we're still growing.

The world is changing, and so is ACORD. As a member-driven organization, we must work together to meet the needs of an increasingly diverse industry and membership. With globalization and internationalization come new data requirements from members new and old, and from near and far.

They are actively engaged in our standards process, either via working groups, committees, or maintenance requests. We're traversing the globe, talking to organizations and regulatory bodies, meeting with members and other companies, speaking at conferences, listening to different needs and requirements.

ACORD is working to ensure our standards meet the needs of a global and local industry, which in turn makes members more efficient and competitive. We're growing, evolving, and adapting to ensure standards are the foundation for systems and for building unique requirements.

At the core, we know we all are the same. Our systems pump data throughout the value chain. Our basic needs are the same. That is where ACORD standards can be leveraged to ensure we communicate efficiently and improve data quality, transparency, and availability.