Bids invited to create global insurance compliance database
Airmic has issued a second Request for Proposal (RfP) for companies interested in creating a global database of international insurance requirements, with a view to having the project completed by the end of 2014. Aon, Marsh and Willis are working with Airmic on the project, which is initially to provide a database to meet their own requirements. It is hoped it will eventually become a facility for the whole market.
The database will contain details of regulations on a territory-by-territory basis, making it easier for risk carriers, their clients and brokers to ensure that insurance programmes comply in every territory where cover is provided. The issue has emerged as one of the top ‘stay awake at night’ issues affecting risk managers.
The first RfP attracted a high level of response, with more than a dozen organisations coming forward. The second one is more detailed, and includes a timetable leading to implementation. The deadline for responding is the end of March 2013.
Airmic expects the RfP to be of interest to some law firms, specialist insurance database firms, IT companies and insurers that already have their own compliance databases. The association expects the successful service providers to make the scheme self-financing, a model that has worked well in other areas of insurance compliance.
Airmic technical director Paul Hopkin said the association would work in partnership with companies to develop the right solution. “This is a complex project and we are therefore not going to be too prescriptive about how it is delivered as long as we achieve our objectives. We are also open to the idea of bidders with complementary skills teaming up to provide a joint response,” he said. “We are happy to meet with interested parties as they develop their responses, to ensure that the best solution is achieved.”
The main focus will be to provide global guidance on admitted and non-admitted insurers by jurisdiction. This varies not only between countries, but also within some territories such as the US. It can also depend on the class of business being written. Failure to comply can result in fines, cancellation of cover, reputational damage and, in exceptional cases, imprisonment. The importance of claims handling requirements is also a key aspect of the information that needs to be compiled.
"This is a great opportunity to develop a collective solution to a problem that has dogged the market for years. I am confident that there are providers out there able and willing to do so - the momentum is there," said Airmic deputy chair Helen Hayden.
“Compliance is a key concern in the sector. Multiple access-points and several owners of insurance related data-bases that seek to address the issue presents a further challenge to buyers and to the wider insurance community; we are therefore pleased to support this important project,” said Chris Bilney of MD of Real Estate at Aon Risk Solutions.
“The initiative driven by Airmic to develop a standard database that would be applied by the market is welcome, as it would go a long way to ensuring consistency, clarity and contract certainty,” said Praveen Sharma, a Senior Vice president at Marsh.
The project is also supported by a number of market bodies including the IUA, London and International Insurance Brokers’ Association, the European Risk Management Federation FERMA, the North American risk management association RIMS and the World Federation of Insurance Intermediaries.
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“We are happy to meet with interested parties to ensure that the best solution is achieved.”
Paul Hopkin
