The RCCAQ's technology committee, chaired by Jean Bilodeau, continues to seek a clearer definition of the technological challenges facing brokers and to shed light on how they can deal with them more effectively.

As part of a series of articles on the technology committee's work, one if its members, Mathieu Brunet, outlines two transformative projects currently underway.

Practical solutions for real-time transactions

One project is being spearheaded by the Insurance Brokers Association of Canada (IBAC), while the other is being handled by the Insurance Brokers Association of Ontario (IBAO). Both, however, have the same objective: putting together a comprehensive framework enabling Canada's insurance brokerage sector to carry out most broker/insurer transactions in real time.

Board member Mathieu Brunet, vice-president and partner at MP2B Insurance, is the RCCAQ's representative on IBAC's technology committee. He describes himself as very enthusiastic about the discussions and work currently underway: “The interesting thing about these projects is that they are being led by insurance brokers. There's a real desire to work together among brokers, insurers and suppliers offering BMS solutions (brokerage management systems). We all have an interest in seeing the brokerage industry modernize and be more efficient. Our discussions are being held with those ideas in mind.”

Decentralized solution for IBAC

The solution that IBAC is currently studying is based on establishing a series of principles facilitating the real-time technological integration of transactions between brokers, insurers and brokerage management systems. Industry-wide standards are being proposed for data configuration and the development of standardized services or functionalities that brokers and insurers can then roll out within their respective businesses. That way, brokers and insurers will have access to a library in which they can seek the desired functionalities, much like how “open source” codes work. These shared tools can also be enhanced over time, depending on new regulations or industry developments.

In line with IBAC's approach, the Centre for Study of Insurance Operations (CSIO) hopes to play a key role in ensuring concerted efforts and compliance. Representing insurers, brokers and software solution providers, the CSIO is seeking to improve the effectiveness of the insurance brokerage distribution network by developing and implementing technological standards and solutions. The CSIO will thus be responsible for defining the new standards, developing reusable services/functionalities and certifying the functionalities used by each insurer or broker before being brought online.

Analyzing the feasibility of a central system

For its part, the IBAO is analyzing the implementation of a central system that will serve as an interface for translating brokers' and insurers' data into a common language for real-time transactions. Insurers and brokers would not have to implement new functionalities, although they would have to sign up for the services provided by the central system in order to carry out their transactions. The IBAO is slated to provide an update on its work in the next few weeks.

In both cases, the projects are aimed at including industry stakeholders across Quebec, as well as in the rest of Canada. “The approaches are very interesting,” added Mathieu Brunet. “They are both focused on brokers' existing BMS and simply propose adding interfaces so brokers' and insurers' systems can exchange data with each other. The experiments that have been carried out thus far and others in the coming months will be used to determine the advantages of each approach, which will need to conform to IBAC's principles.”

Core principles

At the outset, IBAC set out a number of guiding principles for its discussions. Here is a summary:

• All transactions initiated in a BMS must be finalized in the same BMS.
• The data must be transmissible electronically and transparently, without user intervention.
• Data transmission must meet CSIO standards in all cases.
• Data transmitted from one system to another must be processed and returned in real time.
• Automated functionalities must not require brokers to connect to or use an insurer's website.
• Data translation must be handled by the insurer, not the broker.

Next steps

The IBAC and IBAO committees are meeting regularly to track the progress of their projects. The RCCAQ's technology committee expects a number of major developments in the coming months. We will be sure to keep you informed.