Like the medical industry, the insurance industry operates on and is dependent upon critical information from clients. Some of the information is highly sensitive and personal in nature, requiring insurers to not only maintain a stance of confidentiality about their records, but also update them as necessary. Optimal coverage can only be provided to clients if their files are current. With recent technology, insurers no longer have to deal with slow paperwork, but instead can process forms electronically.
ACORD is a nonprofit organization that strives to provide standardized forms for the insurance industry. With a consistent, universal format for forms, both providers and clients benefit from quicker response times. ACORD has relations with many different government and regulatory sectors. Within the US, ACORD works with the National Association of Insurance Commissioners (NAIC) and the International Association of Insurance Supervisors (IAIS). The organization also handles some cross-industry work, having collaborated with financial, banking, and human resource groups.
The ACORD form is a standard of the insurance industry now. Having a standardized document format is the first step towards creating an efficient industry. ACORD forms are even more effective when combined with forms automation software. Automation software is powered by OCR so that it can automatically identify and extract the necessary data. Time and money is saved when document processing is performed electronically.