Customer experience

Why do companies go out of business even though they rate decent customer satisfaction scores on surveys? Maybe somebody's not asking the right survey questions.Instead of a barrage of queries, researchers need to pose the "ultimate question" in a regular, systematic and timely fashion to get a true measure of success and growth-the Net Promoter Score (NPS).

PURE CHOOSES ONESHIELD FOR POLICY ADMIN SYSTEMPrivilege Underwriters Reciprocal Exchange (PURE), a startup with headquarters in Plantation, Fla., has selected software from Westborough, Mass.-based OneShield Inc. to support administration of new insurance products. PURE deployed OneShield's Dragon platform to manage the end-to-end policy administration of PURE High Net Worth Insurance personal lines product offerings.

Ithaca, N.Y. - Contrary to what many people think, the large majority of call centers serving United States' customers – service centers in remote locations that handle telephone and web-based inquiries – are operated in the U.S., not in India and other overseas locations. This is one of the findings revealed in "The Global Call Center Report: International Perspectives on Management and Employment."Some of the study's key findings:

Tokyo - Most Japanese insurance companies are now pursuing new customer and product strategies due to regulatory reforms that are opening the banking sector as a distribution channel for insurance products, according to an Accenture survey of senior executives at one-third of the insurance companies operating in Japan.

Boston - John Hancock reports that it has enhanced its JH Illustrator software system, giving producers the ability to complete life insurance applications electronically. The company, which formulated this option based on building on an application wizard added to the software system last year, reports that, except for the producer and client's signature, it has essentially eliminated all handwriting from the application process. "Life insurance applications, especially at the higher end of the market, are complex, requiring numerous forms and a great deal of information," said Naveed Irshad, vice president of product management, John Hancock Life Insurance, a wholly-owned subsidiary of Canada-based Manulife Financial Corp. "Historically, much of this information has been filled in by hand. It was a time consuming task that we have all but eliminated. The only handwriting producers and customers will need to do is adding their John Hancock when they sign the application." He said John Hancock is committed to ensuring that doing business with the carrier is as easy and efficient as possible for producers and their clients. "Being able to enter data once by computer and have it pre-populate the rest of the application and then being able to type in any additional information will be an enormous time saver for producers," Mr. Irshad said, noting that the company is committed to additional investments to improve producer communications. After producers insert information in JH Illustrator for a policy illustration, this information automatically populates the appropriate fields on the life insurance application. The system also pre-selects and pre-fills supplemental forms that need to be included with the application. Once the forms are pre-filled, producers are prompted to save the application on their computer and fill in additional required information based on the case input directly within JH Illustrator. Unlike paper applications where the client needs to initial any changes, the enhancements let producers make and save changes neatly and quickly. In addition, because producers type in the information, the application that producers print out for the client's signature will be far easier to read. JH Illustrator also now includes an asset allocation option that allows producers to include a client's responses from a risk tolerance questionnaire and generates the appropriate asset allocation for the client's risk tolerance level and time horizon. Sources: John Hancock Financial Services, PRNewswire

New York - Three-quarters of consumers are very satisfied with the service provided by their insurance agents and remain committed to working with them in the future, according to a new survey of 1,000 American consumers commissioned by IBM.U.S. consumers want personalized service and human interaction from their insurance providers, says the survey, which comes at a time when agent-based carriers are facing increased competition by direct channels and direct-only insurance carriers.

Stamford, Conn. - Agents claim time savings of more than 50% when carriers provide industry-standard, real-time solutions for processing transactions, such as quoting, billing and claim inquiries, loss runs, and policy views, according to a survey by a software vendor.

New York - In the latest insurance company merger, American International Group, Inc. (AIG) and 21st Century Insurance Group announced they have entered into a definitive merger agreement by which AIG would acquire the 21st Century shares it does not currently own at a price of $22.00 per share in cash, for a total purchase price of approximately $813 million. Last week, INN reported that Liberty Mutual Group is acquiring Ohio Casualty Corp. for $44 per share in a transaction valued at about $2.7 billion. Ohio Casualty Generated $1.4 billion in net written premium in 2006 and had pre-tax income of $300 million. With combined net written premium exceeding $7.3 billion after the transaction, the newly formed company will be the largest regional provider of property and casualty products distributed through independent agents in the United States, said a Liberty Mutual representative. The AIG and 21st Century deal is expected to enable AIG to expand its existing direct-to-consumer auto insurance business, an area in which 21st Century is has shown strong results in California. Martin Sullivan, President and Chief Executive Officer of AIG, said, "We are pleased to enter into this transaction, which we view as a win for all parties. It allows us to combine our expertise and resources to grow this business and it allows 21st Century shareholders to monetize their investment at a compelling value." New York-based AIG already owns, through its subsidiaries, approximately 60.8% of the outstanding shares of 21st Century, Woodland Hills, Calif. Upon completion of the transaction, 21st Century will become a wholly owned subsidiary of AIG. The 21st Century board of directors unanimously approved the merger agreement following the recommendation and approval of a special committee comprised of directors of 21st Century who are independent of AIG. The $22.00 per share price represents a 32.6% premium over 21st Century's closing price on January 24, 2007, the last trading day before the public announcement of AIG's proposal to acquire the publicly held shares of 21st Century and a 39.8% premium to 21st Century's average closing price for the twelve months prior to January 24, 2007. The AIG-21st Century merger, expected to be completed in the third quarter of calendar year 2007, is subject to customary conditions and approvals. The exact timing is dependent on the review and clearance of necessary filings with the Securities and Exchange Commission. The transaction is subject to the affirmative vote of the holders of a majority of the outstanding shares of 21st Century. AIG has agreed to vote or cause to be voted all of its and its subsidiaries' 21st Century shares in favor of the merger. Sources: AIG, Associated Press, INN archives

Dearborn, Mich. - The Auto Club Group (ACG) plans to launch a Web-based service that provides special limited-time discounts and offers to AAA members. The program, DynamicDeals, gives consumer product and services companies an opportunity to provide discounts and savings to AAA's 4.1 million members throughout the Midwest.DynamicDeals, which is set to launch on June 1, 2007, will operate in conjunction with the Auto Club's current member savings program, Show Your Card & Save, but will be more oriented toward time-sensitive, targeted savings opportunities.

Minneapolis - As part of the association's Executive Education Program, the Insurance Accounting & Systems Association (IASA) will present the 3rd Annual CIO Roundtable program on Tuesday, June 5. This exclusive, "by invitation only" event will feature expert educational sessions sponsored by IASA associate member companies, including: AT&T, Document Sciences, Duck Creek Technologies and OnBase Insurance Solutions by Hyland Software. Admittance to the CIO Roundtable is complimentary to any qualifying chief information officer registered to attend the 2007 IASA Annual Educational Conference & Business Show, June 3-6 in Minneapolis.