ACORD has introduced the next iteration of its Global Reinsurance & Large Commercial (GRLC) Standards, aimed at enabling end-to-end digital processing across the insurance and reinsurance value chain.
The update, titled “GRLC Generation 2.0,” provides a digital-first approach to data messaging that supports straight-through processing throughout the policy lifecycle.
The GRLC Gen 2 Standards are designed to be adopted by re/insurers, brokers, and service providers across functions ranging from placement and binding to claims and settlement.
ACORD said the unified set of digital standards is intended to improve efficiency, enhance interoperability, and support integration with digital systems used by internal teams and external trading partners.
Chris Newman (pictured above), ACORD’s president international, said the insurance industry is undergoing significant transformation and that digital standards play a key role in improving efficiency and enabling enterprise-wide connectivity.
Digitalization enables reinsurers to achieve significant operational efficiencies. According to a report from Swiss Re, digital technologies can lead to a 3–8 percentage point reduction in loss ratios and potential savings of 10–20% in various operational areas.
The integration of artificial intelligence (AI) and machine learning (ML) also allows reinsurers to process vast amounts of data for more accurate risk assessments. For instance, 78% of reinsurers reported using ML algorithms to enhance catastrophe models in 2024, up from 62% in 2022.
The rise of intangible assets and cyber threats has created new risk pools. Swiss Re notes that the global value of intangibles has increased fivefold over the past two decades, with close to 80% of that value remaining uninsured, highlighting opportunities for innovative insurance solutions.
The updated version of GRLC aligns with a number of ongoing modernization efforts, including ACORD’s own Next-Generation Digital Standards, Lloyd’s Blueprint Two initiative and Core Data Record (CDR), and peer-to-peer applications such as those implemented by the Ruschlikon community.
These standards support fine-grained, technology-neutral transactions and are based on a lightweight JSON format optimized for microservices and APIs.
According to ACORD, the Ruschlikon user group has reported performance improvements including a 70% reduction in unallocated cash, an 80% improvement in data quality, and a 60% reduction in manual processing efforts.
The initial release under GRLC Gen 2 includes a new Unified Placing Standard and an updated ePlacing Implementation Guide. These combine Lloyd’s Blueprint Two and peer-to-peer workstreams to create a single framework for digital placement that can be used across insurers, reinsurers, brokers, and placing platforms.
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