The Australian insurance market is among the first in the world to adopt a new international data standard that's expected to boost product choice and assist distribution.

Australian members of the Association for Co-operative Operations Research and Development (ACORD) have approved the "ACORD Messaging Library" for use within the local market.

The first standardised message to be implemented is a professional indemnity (PI) content that includes quote, bind and close transactions for new business, renewal, endorsement and cancellation processing.

Uniform data standards are expected to promote efficiency between insurers and brokers in the local market.

"Universal data exchange between consumer, intermediary and product manufacturer, has been achieved with the release of the PI standard," Steadfast Chairman Robert Kelly said.

"When this product is fully rolled out, it will deliver efficiency, greater choice, and a competitive environment."

Allianz CIO and ACORD Australian Advisory Committee Chairman Steve Coles says the industry is "often accused of lagging the banking industry around the efficiency of information flow. This is an important milestone to help close that gap."

Local work to implement ACORD standards gathered pace last year with the establishment of two working groups to develop a design framework and investigate business issues such as placement and forms.