purexml Critical to Capitalizing on ACORD s Potential



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purexml Critical to Capitalizing on ACORD s Potential An Insurance & Technology Editorial Perspectives TechWebCast Sponsored by IBM Tuesday, March 27, 2007 9AM PT / 12PM ET

SOA, purexml and ACORD Optimization More Necessary Than Ever -- Internal and external collaboration remains key Business Value Must Be Demonstrated -- As-needed, when-needed, how-needed processes a must SOA, purexml, ACORD Address Dimensional Issues -- Ubiquity, within standards-based framework, critical

ACORD Messaging Library XML Strategic Direction Mark Orlandi Program Director ACORD 2005.

Agenda g Current Standards Inventory g Changing/Maturing Expectations h SOA / Web Services h Granularity g Future Direction g Q&A

ACORD Standards Current Scope/Format Life, Annuity & Health Life Annuities Health Group Lines Reinsurance Global Data Model XML Forms g P&C/Surety (PCS) h Personal Lines h Commercial Lines h Surety h Global EDI XML Forms Cross Program Standards g Reinsurance (RLC) h P&C Reinsurance h Large Commercial h Global Data Model EDI XML Forms DRI (Document Repository Interoperability) AWSP (ACORD Web Services Profile - SOAP Framework)

ACORD Messaging: A Road to Unified Messaging Standards g After 4-6 years of independent XML specification standards, a new roadmap for ACORD standards is needed h Current Implementation Challenges 8 Inconsistent use of messages due to conceptual definitions 8 Creation of independent sub-transactions to support business needs 8 Current granularity of message definitions limits reuse 8 Support for redundant message definitions between lines of business require additional resources h Acceptance of Web-Services and Service Oriented Architecture 8 W3C extension of XML specifications 8 Business Process Modeling and Functional Re-engineering 8 New hardware and software solutions improve XML performance concerns 8 Use of XML with internal processing as well as external data exchange h Industry analysts agree 8 Shift in the architectural direction in support of business needs

Capability & Process Model Concept Level # C1 Capability (Level 1) Capability Model Components C2 Capability (Level 2) C3 Capability (Level 3) P1 Enterprise Process P2 Process Process Model Components P3 Activity P4 Task P5 Business Service

Process Model Conceptual Example

ACORD Messaging: TowerGroup Assessment and Recommendations g g g g In order to achieve the benefits of SOA, business messages must be standardized across all sectors of the insurance industry and integrated within the financial services industry. ACORD needs to define common insurance processes and functions in order to use the level of message granularity required to support SOA. In order to ensure success, the level of message granularity must be in line with both the carrier and vendor community and be consistent across all messaging. An evolutionary approach is required to enhance, extend and integrate the current standards while still supporting current implementations.

Future Direction 2007 PCS V2 Re-Positioned 2007-200x LAH Planning & Begin Transformation 2007-2008 RLC Monitor Work AML ACORD Messaging Library

ACORD Messaging Library g g g PCS V2 will be the first ACORD XML Standard to transition to the ACORD Messaging Library and fully comply with the NDR target architecture LAH and RLC will move on their own timeframes and transition when appropriate for their respective domains Coordinate with Standards Framework and related components where appropriate

ACORD Messaging Direction Vision g g g g g A single library of business messages for the industry h Support and encompass the insurance value chain h Across all domains and all geographies h Support the Standards Framework The business messages defined will support business functions relevant to: h All domains h All geographies h All lines of business h Support both B2C and B2B Messages will be common whenever possible h Ensure consistency for business functions, regardless of process, product, geography or domain h Allow for unique business messages where appropriate Business messages at a level of granularity appropriate to the business function being supported Architecture will be vendor neutral and support industry specifications: h Http, SOAP and XML

Data Server Innovation purexml TM Arvind Krishna Vice President, Data Servers and Development IBM Information Management Software 2007 IBM Corporation

IBM Leads in Data Server Innovation Over 3,000 data management patents Innovation Milestones 1968 1980 2006 First Hierarchical Data Server First IBM Relational Data Server First Hybrid Data Server Continuous IBM innovation 2007 IBM Corporation

IBM Data Server Innovation Defining the industry and setting the standard System R Relational Database SQL Standard R* Distributed Database Object-Relational Database Parallel Database Engine DB2 Data Sharing Record Level Locking Autonomics Automatic Summary Tables Materialized Query Tables Parallel Database Automatic Summary Tables Materialized Query Tables Index Advisor Heterogeneous Database Federation Deep Intelligent Miner Compression Multi-Dimensional Clustering Utility Throttling Design Advisor Learning Optimizer Memory Visualizer Deep Compression Hybrid Data Server XQuery Standard purexml Automatic Schema Mapping 2007 IBM Corporation

DB2 9: A New Generation Hybrid Data Server High cost development Poor performance Streamlined development High performance Or Business data in XML form managed in relational database Business data in XML form managed with DB2 purexml TM 2007 IBM Corporation

2007 IBM Corporation

XML is the Language of Business Insurance ACORD Policy management, underwriting, indemnity, claims, etc. http://www.acord.org Banking and Financial Markets IFX - Interactive Financial Exchange Trades, banking, consumer transactions, etc. http://www.ifxforum.org Health Care HL7 Patient Management Diagnosis, treatments, prescriptions, etc. http://www.hl7.org Retail IXRetail Inventory, customer transaction and employee management http://www.nrf-arts.org/ Cross-industry, Business-to-Business SWIFT B2B Transaction, invoices, purchase orders, inventory status, etc. http://www.swift.com... and 100 s more! 2007 IBM Corporation

Business Value of Industry Standard XML Adoption Strategic Business Value ACORD data dictionary and models ACORD forms Use of Industry Standard Forms Use of Standard Messages Use of Industry Standard Process Models and Business Service Definitions ACORD XML (P&C, Life, Reinsurance) Future: Standards for SOA, Integration, Web Services, and Best Practice Integraton Use of Standardized Data ACORD DRI (Document Repository Interface) Level of Industry Standards Adoption 2007 IBM Corporation

XML Developer I see a sophisticated XML repository that also supports SQL." 2007 IBM Corporation

XML Data Needs Transactional Maturity Complementing XML Processing XML Data Needs Protection and Security Backup and recovery features to ensure continuity Data is protected using database security Simplified XML Data Access Centrally store and access difficult to retrieve data SQL or XQuery can be used to retrieve data Join XML data with it s related relational data Search Speed Search documents quickly and efficiently using proven search optimization engine of mature database Optimize Existing Investments Use existing technology infrastructure and skills to store and manage both relational and XML 2007 IBM Corporation

Summary of DB2 vs Other DB for XML Performance 2.5 2.0 XML document Insert Performance 2.2 2.2 x Faster! 1.8 1.6 1.4 XML document Mixed Read/Update/Delete Performance 1.5 1.5 x Faster! x Faster 1.5 1.0 x Faster 1.2 1.0 0.8 0.6 0.5 0.4 0.2 0.0 DB2 9 purexml vs. Oracle 10G Structured XML storage 0.0 DB2 9 purexml vs. Oracle 10G Structured XML storage XML document Retriaval using multiple Read queries Performance 3.6 x Faster! 600000 Customer Workload (XML Document Ingestion rate) x Faster 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 3.6 XML Documents/hour 500000 400000 300000 200000 100000 No Results Only DB2 Finished! 0.0 DB2 9 purexml vs. Oracle 10G Structured XML storage 0 DB2 9 Oracle 10g 2007 IBM Corporation

A New Generation Data Server for A New Generation of Applications Data Server Services that manage, secure and provide access to the database. Data Server Hybrid Data Server DB2 supports both relational and purexml TM storage and provides all the necessary services to support both data structures. Hybrid Data Server Database Physical Storage Database Logical View of storage Tables Views Physical storage Database Files Relational Storage Data stored in a row and column format purexml TM Storage Data stored in a preparsed hierarchical format, not as a single text object (CLOB) 2007 IBM Corporation

2007 IBM Corporation

AgencyPort http://www.agencyport.com AgencyPort is the leading provider of web-based new business, endorsement and renewal solutions designed specifically for property and casualty insurers. Our agency portal and interfaces products enhance the underwriting process, extend the life of policy administration systems and make it easy for agents to transact business. 2007 AgencyPort

DB2 purexml & AgencyPort AgencyPort has two ACORD XML Based Products AgencyPortal Enhances and streamlines workflow between a carrier s internal staff and it s agency force Provides real-time pricing information to agents Allows agents to check risk eligibility Automates the underwriting process Binds policies online 2007 AgencyPort

DB2 PureXML & AgencyPort AgencyConnect Speeds the implementation of interfacing company systems with agent technology Enables real-time transactions with any agency vendor system Transforms & normalizes disparate legacy data formats into a single ACORD XML output 2007 AgencyPort

DB2 purexml & AgencyPort The Agency Environment The Company Environment Agency Management Systems Comparative Raters AgencyConnect AgencyPortal Rating Policy Administration Security Workflow Web Browsers DB2 9 purexml Enterprise Services

DB2 PureXML & AgencyPort Using DB2 9 purexml, AgencyPort Customers Reduce Development Costs of integration with Rating Engines Rules Engines Increase enterprise leverage by introducing database-level XML transformation routines Query XML data directly using XQuery, Simplifying Basic Reporting Tasks 2007 AgencyPort

DB2 purexml & AgencyPort www.agencyport.com 2007 AgencyPort

Q&A Please Submit Your Questions Now

Resources http://www.acord.org/home/home.aspx http://www.agencyport.com/ http://www-306.ibm.com/software/data/db2/