ACORD recently released an update to the Capability Model, Process Model, and Business Glossary facets of the ACORD Reference Architecture.
The Capability Model provides a blueprint of all business capabilities that are used by an insurance company, covering 10 high-level business capabilities. The Process Model is aligned to the Capability Model, providing a visualization of its business processes and graphical representation of its task flow.
This release includes various updates to the processes and diagrams, primarily focusing on enhancements to the Claims Lifecycle Management capabilities:
- Process Model expansion: The latest Process Model release includes a Determine Claim Settlement capability, which can trigger a notification to the insurer that a claim has been reported and investigated. This process determines the amount of loss, or damage covered and accepted. A Verify Claim process is also added to the model, allowing the insurer to validate the claim under its terms of agreement.
- Litigation capabilities: We have added processes for Claims Recovery, Claims Resolution, and Fraud Management. While a given claim can be settled without doing any subrogation, salvage, or litigation, these Process Model capabilities are now available if necessary.
- Artificial Intelligence enablement: Algorithms and Artificial Intelligence (AI) can help insurance companies streamline their claims handling process, enabling the automation of claims payments, investigations, or capturing information. In this release, we extended the Process Model to incorporate the role of AI in the Claims Handling and Notification processes.
The Business Glossary, a dictionary of terms that consists of insurance concepts and includes definitions, usages, and references, has also been updated to reflect the enhancements to the Process Model. The glossary now includes a total of 6,232 terms.
To download the current release, or for more information about the ACORD Reference Architecture, please see here.