THE CASE FOR OPEN INSURANCE DATA STANDARDS

Why the Property and Casualty Insurance Industry is Creating New Open Standards for Information Exchange

The property and casualty (P&C) insurance industry is at a critical
juncture. For decades, insurers, reinsurers, brokers, and third-party
vendors have relied on proprietary data formats resulting in limited
agility, inefficiencies, and increased costs. In an era where data is
the cornerstone of competitive advantage now for every industry,
these legacy constraints are no longer sustainable.

A shift toward open data standards presents a transformative
opportunity. By collectively building and widely-adopting a
universally accepted, non-proprietary framework for data exchange,
the industry can enhance interoperability, streamline operations, and
accelerate innovation. This white paper explores why the adoption of
open standards is not just an option — it is an imperative for the
future of insurance.

Abstract

Can you imagine a universal and widely-adopted data sharing
process for the P&C industry? What if the only thing that needs to
be done is “turning on the spigot” to allow other parties to receive your data as a feed across it through a query? Wouldn’t it be great if a consensus-built format is open, non-proprietary, and futureproof? Can you see the opportunities in joining every other major global industry in their mutual industry benefits resulting from collective contribution to open source platforms – that actually shift bottom lines?

The Property and Casualty (P&C) insurance industry is undergoing significant

transformation as technological advancements, increased regulatory scrutiny, and market

demands for efficiency drive the need for seamless data exchange. Historically,

proprietary data formats have been widely used to facilitate communication between

carriers, reinsurers, and regulators. However, these formats often introduce barriers such

as high costs, lack of interoperability, and vendor lock-in. In contrast, free and open

standards offer a compelling alternative by providing universally accessible data

exchange protocols that enhance collaboration, reduce costs, improve transparency,

and foster innovation. Such standards should be non-proprietary and open through an

organization that has decades of proven success in open governance and the capacity to

maintain these frameworks and characteristics indefinitely. This paper explores the

benefits and value proposition of building non-proprietary and open standards in

comparison to proprietary and closed formats and frameworks – highlighting key

advantages in areas such as cost efficiency, scalability, regulatory compliance, and longterm

adaptability. openIDS (open Insurance Data Standards) is proposed as a launched

and currently functioning open standards framework-building project, built with,

supported, and managed by the Linux Foundation, the largest global open source

development platform.

The openIDS community seeks your support and participation in building the new and open

P&C data standards framework.