Open Data Standards (ODS) are key to ensuring continued transparency and are fundamental to improving interoperability that will increase efficiency for the market, reduce costs, and enable greater choice in the use of catastrophe models.
The ORD (Open Results Data) Standard was developed as a result of a collaborative project involving Managing Agents, Brokers, (Re)Insurance companies, Risk Modelling Vendors, and Third-Party Providers during the Lloyd’s of London Cohort 3 Innovation Lab in Q’s 3/4, 2019.
The OED (Open Exposure Data) Standard arose from the lack of an industry standard for Oasis LMF-based models. Both OED and ORD were intended to assist with solving interoperability problems current in the insurance market, where implementing a model-developer-independent exposure data and results repositories will assist in creating more choice in the use of catastrophe models and analytical tools.
To continue to allow for the evolution of OED and ORD, and adoption by the (re)insurance market, a Steering Committee - formed of industry experts - will agree on the governance and curation of both standards in the future. The SteerCo agreed to the name Open Data Standards (ODS) to capture the full remit of the initiative.
What is ODS?
Open Data Standards (ODS) is a framework for open and transparent data sharing
that will assist in addressing interoperability challenges in the insurance market. Implementing model-developer and model-vendor agnostic exposure data and results repositories will assist in creating choice and consistency in risk management applications.
Why is ODS important and what are the main benefits?
Having one consistent, community-owned data standard across the market has huge benefits, especially when it comes to data transfer between users of multiple models and systems. This will significantly reduce the huge drain on time and resource when it comes to data processing and formatting.
Being open is key to improving efficiency and transparency which will support collaboration, development and adoption.
Who is ODS for?
ODS can be used by anyone. Its completely open and free to access and anyone can contribute to its development.
How is ODS governed?
ODS is governed by a steering committee (SC) made up of attendees from multiple companies within the insurance sector such as insurers, reinsurers, cat model vendors, brokers and technology companies. The SC meets about four times a year and is currently chaired and curated by Oasis LMF.
Its agreed that ODS should not be owned by one particular company or entity for specific commercial gain and is currently only being ‘looked after’ by Oasis LMF. This will likely change in the coming years. ODS is a market initiative which will rely on wide collaboration from the market to develop and progress.
What are the main challenges of adopting ODS?
There are many challenges with adopting ODS but the two main and obvious ones are:
1) changing the mindset and practices of a marketplace that has relied on dominant proprietary formats for decades. Altering existing practices can be disruptive and require extra resource which is the biggest hurdle. Inertia will increase as large users in the market (especially brokers) start to adopt ODS and include this standard as a format during renewals. ODS also needs supporting by regulators.
2) Agreeing the most appropriate and efficient technology for an open standard. It must be flexible, fit for purpose and easily accessible to the wider user base.
What are the mandatory fields used in OED?
The majority of mandatory fields in OED are model specific and so it will be up to the vendor of that model to supply these in their documentation and guidance. However, there are a handful of mandatory fields required to run a basic model in Oasis to produce the ground-up or economic losses.
All required or optional fields can be found in the ‘Open Exposure Data Spec’ doc on the GitHub repository below.
What are the next steps for ODS?
The next steps on the ODS agenda for development are:
1. Expand the classes of business supported by OED to liability in the first instance. Other classes such as marine and cyber are also high on the agenda but these will be dictated by user appetite.
2. Implementing ORD (Open Results Data) into the Oasis platform and agreeing on the technological approach. This will include picking up the initial work done on ORD (from the Lloyd’s Lab (cohort 3) project) and developing a way to package it with OED.
Development of these next steps will be led and driven by specific working groups made up of market participants.
What are the long-term goals for ODS?
The long-term goal for ODS is that it becomes “the” market standard for catastrophe risk data and significantly improves data transfer across the market.
The aim is that ODS is a complete standard package, not just limited to cat risk data but to encompass multiple standards for messaging, interoperability and contract definition language.
Where can I find details and documentation on ODS?
All documentation on ODS and its governance are accessible to anyone on the following GitHub repository.