Technology standards organisation ACORD is to begin testing its policy variation message standards with its Australian life insurance members.

ACORD is the non-profit US-based Association for Co-operative Operations Research and Development. Its policy variation message standardises data transmissions, leading to efficiencies among software vendors, funds and insurers.

The Australian policy variation message is sent from a super fund administrator to an insurer to start the underwriting process.

At present the data format varies, so the insurer faces different formats from various funds even if the information is the same.

ACORD’s Australia Life Insurance Steering Committee gave approval for the test phase.

The policy variation message is the first component of the Australia Life ACORD Messaging Library.

Australian steering committee Chairman Anne Garlick says the process, “along with the commitment shown by the insurers and fund administrators in getting this message ready for testing, is a testament to the industry working together towards a common goal”.

If there are no problems during testing, the policy variation message could become an official ACORD standard before the end of the year.