https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AElectronic_data_interchange_%28EDI%29Definition:Electronic data interchange (EDI) - Revision history2026-06-13T23:14:40ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Electronic_data_interchange_(EDI)&diff=8948&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-11T04:48:00Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>📡 '''Electronic data interchange (EDI)''' is the structured, computer-to-computer exchange of business documents — such as [[Definition:Policy | policy]] data, [[Definition:Premium | premium]] bordereaux, [[Definition:Claims | claims]] notifications, and accounting statements — between parties in the [[Definition:Insurance market | insurance market]] using standardized electronic formats. In an industry where transactions routinely flow among [[Definition:Insurance broker | brokers]], [[Definition:Insurance carrier | carriers]], [[Definition:Reinsurance | reinsurers]], [[Definition:Managing general agent (MGA) | MGAs]], and third-party administrators, EDI replaces manual, paper-based exchanges with automated data transmissions that reduce errors, accelerate processing, and create auditable records.<br />
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🔗 Insurance-specific EDI standards have evolved through industry bodies such as [[Definition:ACORD | ACORD]], which publishes standardized message formats for property, casualty, life, and reinsurance transactions. In the [[Definition:Lloyd's | Lloyd's]] market, the adoption of electronic placement through platforms like PPL (Placing Platform Limited) and structured data exchange via the [[Definition:London Market Group (LMG) | London Market Group's]] modernization initiatives exemplifies EDI principles applied at market scale. A typical EDI workflow begins when one party — say, a broker — generates a transaction in its own system; the data is translated into the agreed standard format, transmitted via a secure network or [[Definition:Application programming interface (API) | API]] connection, and automatically ingested by the receiving carrier's [[Definition:Policy administration system | policy administration]] or [[Definition:Claims management system | claims management system]]. This automation is particularly valuable for high-volume [[Definition:Delegated underwriting authority (DUA) | delegated authority]] programs, where thousands of individual risks must be reported and reconciled between an MGA and its capacity providers.<br />
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🚀 While EDI has been part of insurance operations for decades, its relevance has grown as the industry digitizes and regulators demand faster, more granular data reporting. Carriers investing in modern [[Definition:Core system | core systems]] increasingly expect their trading partners to exchange data electronically as a condition of doing business. For [[Definition:Insurtech | insurtech]] companies building new platforms, supporting EDI and ACORD standards is often a prerequisite for integration with incumbent carriers. The shift toward real-time or near-real-time data exchange — enabled by APIs layered on top of traditional EDI infrastructure — is further raising expectations for speed and data quality across [[Definition:Underwriting | underwriting]], [[Definition:Billing | billing]], and [[Definition:Claims processing | claims processing]] workflows.<br />
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'''Related concepts:'''<br />
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* [[Definition:ACORD]]<br />
* [[Definition:Application programming interface (API)]]<br />
* [[Definition:Policy administration system]]<br />
* [[Definition:Bordereaux]]<br />
* [[Definition:London Market Group (LMG)]]<br />
* [[Definition:Straight-through processing (STP)]]<br />
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