By: Luke Jones, Published on February 23, 2018 09:31 AM, Last Update on February 23, 2018 06:32 AM
Electronic payment systems that allow customers to pay their insurance policies are becoming popular around the world. However, Canada is being more cautious in adopting innovation, but the country’s second largest P&C says it is exploring the market and could develop a payment system.
ISO 20022 is a global standard for electronic payments, but it has not been widely adopted in Canada. However, Aviva Canada says it is intrigued by the standard and wants to explore its possibilities. The company is not using ISO 20022 now, but says some aspects are being used, such as credit card transactions.
“Aviva is supportive of standards and we’re one of the biggest advocates in the insurance industry for the adoption of data interchange standards,” the company said.
Aviva Canada says it uses XML standards from the Centre for Study of Insurance Operation’s (CSIO), which moves data between insurance companies and brokers. The company is also a collaborator on Guidewire and on creating APIs.
Justin Ferrabee, COO of Payments Canada, spoke to Canadian Underwrite and said its time for Canadian insurance companies to start working towards adopting ISO 20022.
“Your large insurance companies… ought to be thinking about an ISO 20022 environment,” Ferrabee said “How they are going to modify their systems? What vendors do they have, and are those vendors are ISO-enabled? They should start that process because it takes time. They should talk to their bank about when their bank is ready to accept those messages.”