Everything You Need to Know About Insurance ACORD Forms
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If you’ve ever traveled internationally you know the maddening inconvenience of forgetting a power converter for your electronics. Without one, you are either faced with forgoing what you packed for the duration of your trip or paying for an adapter to make your electronics usable.
In this anecdote, a power converter saves the day by allowing your devices to safely function within the voltage standards of a different country—ensuring your electronics remain protected and functional.
In the world of insurance, thousands of agencies must communicate by sharing data, and each has its own set of forms and types of information storage. And without a way to standardize communication of insurance information, there’s a big risk of miscommunication about customer needs and policy coverage.
Association for Operations Research and Development
Luckily, for 50 years the Association for Operations Research and Development (ACORD) has served as the global insurance industry’s power converter. Their standardized forms have increased workflow efficiency and improved customer satisfaction since the 1970s.
In this article, we'll walk you through exactly what ACORD forms are, and answer all your questions about this universal data-sharing system.
What Are ACORD Forms?
While most firms have their own way of transferring data within their offices, their in-house forms do not always translate easily when given to another company using a different platform or management system.
ACORD forms solve this headache-inducing problem. They are a set of standardized forms that 90 percent of insurance agencies use to streamline data transfer between companies.
Basically, they are the power converters of the insurance world, ensuring that data from one system is presented in an accessible format that can be easily uploaded to any insurance CRM software.
ACORD forms are the global standard for insurance data transfer.
The universal structure of an ACORD form acts as a passport for policy information in the global insurance ecosystem by allowing companies around the world to seamlessly share their data.
A client’s name, policy number, and other important details are found in the same fields on the form regardless of company, country, or language. This allows insurance agents around the world to efficiently scan a form (visually or electronically), and quickly get the information they need.
Insurance is needed everywhere, and it requires a universal language for agencies to request and share their data with other companies in order to meet customer needs.
ACORD forms provide this common ground and remove communication barriers to offer clarity in an industry with a need for efficient solutions.
ACORD forms provide efficient solutions fast.
Life can be messy and unpredictable: that’s what insurance is for. That’s why simple, logical, and easily accessible solutions within the insurance industry are vital to an efficient workplace.
With their ease of data flow and information sharing, ACORD forms streamline any solution process by quickly getting everyone on the same page.
If a policyholder needs to terminate coverage and switch providers, an initial submission of an ACORD form from a previous insurance company can provide a new agent with all the information they need to care for the client.
All modern agency management software should have the ability to scan ACORD forms and translate them to their own in-house documents with autofill features, further speeding up the process.
If a client needs to use their coverage, a quick scan of an ACORD form tells the agent managing the claim exactly what is and isn’t covered. This simple convenience eliminates guesswork and frustrating wait times while increasing customer satisfaction.
There’s a Form for Everything
ACORD really is the Mary Poppins carpet bag of insurance data transfer—no matter the situation, you can reach in and pull out the right form for you.
With a list of over 800 forms ranging from documenting car accident information to providing proof of terrorism insurance, ACORD has every possible circumstance covered.
Their expansive library ensures that customers are matched with forms specific to their unique policy so that key information doesn’t get lost in one-size-fits-all forms.
ACORD forms are powerful—so attention to detail is important.
The ever-popular adage is true: with great power comes great responsibility.
While ACORD forms are incredibly useful during the initial data transfer process and helping in confirming coverage, they can cause a lot of trouble and needless headaches if they’re misused.
Many forms provide proof of insurance or details regarding a specific policy, while others serve to change coverage parameters or cancel policies completely.
Many of the forms look extremely similar so agents must stay attentive when choosing which form to complete. A careless mistake can mean clients losing their coverage.
Names and dates should be double-and triple-checked as even small spelling errors may delay (or even void) the processing of the form by another insurance company.
The devil is in the details. While the checking and double-checking of forms may seem tedious, it’s a small price to pay for the streamlined information transfer that ACORD enables.
Efficient Operations Are Just a Click Away
ACORD Standards prides itself on being the industry leader when it comes to providing specific and detailed data-share solutions in the evolving insurance landscape.
Every day, more and more people are looking for reputable insurance they can trust, so it’s vital to have agency management software that allows for matchless data control.
For more information on how to increase the productivity and efficiency of your insurance agency, contact NASA and learn how to make your insurance CRM work for you.