Common data standards launched for credit risk

A collaborative approach from the credit insurance market has led to the formation of the first global common data standards for credit risk.

Available to all brokers and insurers, the Dialogue Single Risk Credit Data Standard is the result of extensive ongoing dialogue between major market practitioners, focussed almost exclusively on credit insurance terms.

Developed by Dialogue Exchange Global, the new standards are designed to provide data integrity, accuracy and consistency across the market – creating a digital foundation for automatic underwriting and increased deal flow.

The Dialogue Single Risk Credit Data Standard has been developed to complement the existing Acord / Lloyd’s or other basic P&C standard that might already be implemented into a company’s systems.

Credit insurers Chaucer Syndicates; Euler Hermes; Liberty Specialty Markets; Sompo International; Talbot Underwriting; and Tokio Marine HCC collaborated with specialist brokers Miller Insurance Services; Cofarco; Aon UK; and Aon France to develop the data standards.

Lloyd’s also supported the development of the standards, which harnesses data from S&P Global Market Intelligence. The standards cover structured credit transactions across an extensive number of deal types.

“Data standards are the essential building block for any successful market modernisation initiative” said Dialogue founder and CEO Ben Heaney.

“Creating the world’s first non-proprietary, free, open standard dataset specific to CPRI will dramatically reduce data entry time and cost while improving accuracy.

“Common standards will also help the CPRI market to attract more capital, while rating engines can also be designed around standard data sets, leading to automated underwriting, further lowering frictional costs.”