Written by Josh Hershman, Executive Director of OpenIDL
The insurance industry is facing a data reckoning. Whether it’s regulatory reporting, third-party interactions with vendors, reinsurers, and fronting carriers, or even internal transfers between departments, the movement of data across the ecosystem remains painfully outdated. Legacy statistical reporting models were built for a different era, and ad hoc data calls are often too late, too costly, and too fragmented to deliver real value. These inefficiencies slow progress, increase costs, and expose the industry to growing regulatory risk or slowing down progress derived from efficiencies.
At openIDL, we believe there’s a better way. That’s why we’ve shifted our focus onto solving the “Data Problem” — not with another stopgap, but by building the open, modern data standard the industry needs.
From Concept to Consortium: The Birth of openIDS
Earlier this year, we launched a new working group under the banner of openIDS — open Insurance Data Standards. The mission is clear: create a modern, flexible data model that enables the industry to standardize how data is structured and shared. Rather than focusing on any single technology, openIDS is about getting the format right — so that any interactions with any organizations, including regulatory reporting, becomes faster and more reliable. Third-party data exchanges are more consistent and easier to manage and deploy.
To frame the challenge and build momentum, we released two white papers outlining the deep inefficiencies in the current system and calling for industry-wide collaboration. These papers lay out a difficult but necessary truth: if the industry doesn’t act, regulators — including federal agencies — will act for us, imposing their own standards and processes. Read the white papers here.
We believe there’s a better path — one where insurers and regulators work together to define the solution.
Standing on Strong Shoulders: IP Contributions from Cloverleaf Analytics
Our working group isn’t starting from scratch. Thanks to a foundational IP contribution from Cloverleaf Analytics, we have a well-developed data model to build from. This model offers a head start in creating something both resilient and implementable across the industry — a practical core to start, affording the data standards process the best foundation.
This contribution will be the starting point for our first line of business: homeowners insurance. We’re building the first work stream around this line, with the goal of demonstrating real progress on the data standard challenges associated with this line. Once the homeowners model is complete, we’ll expand to other lines in rapid succession, as determined by openIDS.
A Big Tent for Real Change
This isn’t just a carrier project. It’s not just for regulators, either. Our effort is intentionally designed as a multi-stakeholder consortium, open to:
- Insurance carriers / reinsurers / MGAs
- State insurance regulators
- Trade associations and advisory organizations
- Not-for-profits / Academic and research institutions
- Third Party Data Vendors / Actuary Firms
- Other standards-setting organizations
By bringing everyone to the table, we’re working to build a truly adaptable, robust, and open data standard — one that serves the needs of many and adapts to what is now a fast-changing insurance landscape.
Powered by Open Governance
Crucially, openIDS is governed under the Linux Foundation, one of the world’s most respected open source governance models. That means every decision we make is transparent, consensus-driven, and structured for long-term stability — not vendor lock-in or proprietary dependence.
The standard we’re building will be:
- Open source
- Governed by consensus
- Designed for real-world implementation across carriers of all sizes
Why Now?
The stakes are clear. State regulators are overwhelmed. Federal agencies are stepping in. Carriers are spending resources on one-off data calls that deliver limited insight. Third Party Vendors and Carriers expel a huge amount of resources on aligning data when they start working together. Everyone agrees the current approach is unsustainable.
But here’s the opportunity: if the industry builds the solution, the industry can shape its future.
By joining openIDS, insurers, regulators, and other stakeholders can finally collaborate on a shared standard — one that is trusted, adaptable and built by an ecosystem of stakeholders.
What’s Next?
- The openIDS working group is live and growing. Join us
- The first work stream (homeowners) is underway, built on contributed IP.
- Download the white papers – A Future Proof Standards for Insurance Data Interoperability and The Case for Open Insurance data Standards
- Additional lines of business will follow.
- Opportunities for broader stakeholder involvement are opening now.
If you’re in the insurance ecosystem — carrier, regulator, reinsurer, trade group, or technologist — we want you at the table.
We’re not just imagining a better data future for insurance. We’re building it.
Email me here and lets start the conversation.