Data security

PPS SOFTWARE SUITESkywire Software, a Frisco, Texas-based provider of software products for the insurance industry, announced the availability of a reporting tool for PPS, its policy production system for managing general agencies and wholesalers.

Over the last 20 years, the advances enabled by financial modeling are impressive. Insurers have made improvements in risk management, capital optimization, product development and other important aspects of their business with the help of financial models. The critical importance of financial models has never been more evident.Products today are increasingly complex, and the pressure to manage, measure and report risk continues to grow. As a result, models viewed as highly sophisticated just a few years ago are now inadequate to meet today's needs. However, keeping pace with these demands is becoming increasingly difficult.

Outsourcing in financial services is increasing year over year, according to results from two surveys. The surveys also indicate that offshoring is increasing due to cost savings and quality of work.Offshoring is saving the financial services industry an estimated $9 billion each year. This number is up from an estimated $5 billion a year ago, propelled by a 1,800% increase in headcount in lower-cost countries over the last four years, according Deloitte Touche Tohmatsu's fourth "Deloitte Global Financial Services Offshoring Report."

VALUATION SOLUTION REDUCED CLAIMS SETTLEMENT CYCLEPlymouth Rock Assurance Corp., Boston, selected San Diego-based Mitchell International Inc.'s, Total Logic Valuation as the company's total loss valuation solution to deliver a customer-centric loss claims process.

Boulder, Colo. — IT risk management is no longer strictly about mitigating the negative threats surrounding IT, a new study finds. The study was published by Boulder, Colo.-based independent IT management research and consulting firm Enterprise Management Associates (EMA).

Stamford, Conn. – Nearly 90% of CFOs believe that the cost of compliance with Sarbanes-Oxley (SOX) outweighs the benefits, according to the latest survey from the Tillinghast business of Towers Perrin.

Washington, D.C.– The National Association of Mutual Insurance Companies (NAMIC) pointed to a new government report showing a direct correlation between credit scoring and risk. A study released by the Federal Reserve Board comes on the heels of a report by the Federal Trade Commission (FTC) that also said credit scoring is not unfairly discriminatory.

New York — The need to comply with Section 404 of the Sarbanes-Oxley Act (SOX) is only having a minimal effect on enterprise risk management (ERM), new research has found.

New York - A subsidiary of New York-based American International Group, Inc. (AIG) has entered into an agreement to acquire Wurttembergische und Badische Versicherungs-AG (Wuba), its major subsidiary DARAG Deutsche Versicherungs- und Ruckversicherungs-AG (DARAG) and other minor subsidiaries from entities associated with J.C. Flowers & Co. LLC. Subject to regulatory approval from insurance and cartel authorities, the transaction is expected to close later this year. Terms of the agreement have not been disclosed. "We are pleased to have reached an agreement to acquire Wuba and its subsidiaries," said AIG President and Chief Executive Officer Martin J. Sullivan. "The transaction both reaffirms AIG's commitment to growing in the German marketplace and greatly enhances our insurance offerings to small and medium sized companies." Based in Heilbronn, Germany, Wuba offers property and casualty, marine, personal lines, and accident & health insurance through its 2,500 broker relationships across the country. "Wuba is an experienced and highly respected German insurer with a strong brand," said Nicholas C. Walsh, Executive Vice President of Foreign General Insurance for AIG. "We plan to continue their commitment to superior customer service, broker focus, distribution management and technology." AIG serves commercial, institutional and individual customers with insurance products, with operations in more than 130 countries and jurisdictions. Source: AIG

Washington— The National Association of Professional Insurance Agents (PIA) is reiterating its opposition to the National Insurance Act of 2007.

Washington, D.C. - The House Financial Services Committee today passed H.R. 2761, the Terrorism Risk Insurance Revision and Extension Act of 2007 (TRIREA) by a vote of 49 to 20.

Richmond, Va. - Markel International Ltd., the company's London-based operation, will enter the Asian market with marine and professional liability products, the company reports. Markel Vice Chairman Steven Markel told INN that the push in Asia is in conjunction with its operations as a syndicate of Lloyd's of London.

Frisco, Texas – The consolidation in the vendor arena continues as Skywire Software, making its third major acquisition of the year, snapped up Canadian automation and compliance solutions provider Whitehill Technologies, Inc.

FEE REDUCTION FOR INSURANCE SERVICESThe Depository Trust & Clearing Corporation's (DTCC) Insurance Services New York business reports its first fee reduction in history, reflecting growing usage of its services. Insurance Services has automated linkages and data exchange between carriers and their broker/dealer, bank and other distributor partners who market insurance products.

Reinsurance firms are gripped by a series of major challenges, from increased consolidation in the industry to the rise in securitization and the greater risk primary insurers assume. Although the firms' brokers remain intent on winning clients by accentuating the personal touch, many reinsurers are aggressively adopting technology to confront the stiff obstacles they face.A principal new challenge for reinsurers is the rise in the use of securitization to support life insurance products. Both life and P&C insurance firms are turning to securitization to access capital markets, which has helped lead to a decline in recurring reinsurance since 2005, according to the recent study, "Emerging Trends in U.S. Life Reinsurance: Challenge or Opportunity," from the Hartford, Conn.-based firm Conning Research and Consulting Inc. While recurring reinsurance increased significantly from 1995 through 2000, it flattened out from 2001 until 2004, and then began declining in 2005. "To the extent that some primary insurers, initially several larger ones, use securitization as a substitute for reinsurance, it presents a threat to reinsurers," the study notes.

DIRECT-TO-CONSUMER INSURER CHOOSES RULES MANAGEMENT SYSTEMPrecedent Insurance Co., a subsidiary of American Community Mutual Insurance Co., headquartered in Livonia, Mich., chose Redwood Shores, Calif.-based Corticon Technologies' Business Rules Management System as a critical component in the development and management of Precedent's direct-to-consumer healthcare insurance solution. Precedent plans to deliver a suite of health insurance solutions called REMIX, which includes "Coverage on Demand" plans that charge the insured for only the health insurance coverage they need.

London - Though still nascent, enterprise risk management (ERM) programs are becoming more established amongst European insurers, a report from Standard and Poor's (S&P) has found. In its report, "Enterprise Risk Management Assessments on Europe's Insurers," S&P surveyed 70 European carriers about their adoption and use of ERM programs.

Brussels – Under a new measure that may be proposed as early as July 10, insurers within the European Union that conduct business across various borders may be supervised by regulators representing larger groups. EU Internal Market Commissioner Charlie McCreevy is expected to propose Solvency II, a law designed to help regulate how insurers set aside money to cover risk and provide increased policyholder protection while creating a more competitive insurance marketplace. But Peter Skinner, who is expected to steer the measure through parliamentary channels, said lawmakers were already considering a "plan B" if no deal is reached on the supervisory aspects of Solvency II. Conflicting news reports state that the Solvency II deadline may be moved to 2010. Currently, multinationals such as Allianz, Generali, Aviva and Axa, account for 85% of total premiums in Europe, and represent 14 of the bloc's 27 member countries. The fear, say analysts, is that if a new measure is passed, national watchdogs could be given a limited role as supervisors in London, Frankfurt and Paris, home to many of the big groups, take charge. Lawmakers say that the assembly and EU states have joint say on Solvency II. A 28th regime would likely be a voluntary scheme outside existing legislation in the 27 EU member states. Skinner reportedly wants home regulators to be responsible for approving an insurer, with local watchdogs keeping a day-to-day eye on how much capital groups have locally to cover domestic risk. Sources: Reuters, The Insurance Insider

BANKS SHOULD SET SIGHTS ON RELATIONSTo entice customers to buy more financial products and services, financial services companies need to focus on improving their relationship strategies, according to Gartner Inc., a research firm headquartered in Stamford, Conn.

ISTREAM TO INCLUDE NEW FUNCTIONALITYWhitehill Technologies Inc., Moncton, New Brunswick, announced new functionality in the IStream document automation suite, including IStream Publisher and IStream Document Manager. The IStream suite is designed to enable business users to create 'model documents' that control the language, layout and look of complex files, such as policies and contracts. IStream can be used to create and control virtually any kind of insurance document, from contracts to welcome kits to group booklets. New functionality includes add-ins for Microsoft Word and Adobe Reader, letting users create complex documents in a familiar, easy-to-use, interactive environment. As data or standard wordings change, users can automatically update their documents to reflect those changes. Leveraging industry-standard applications gives insurers the power to create and update documents easily as part of their normal processes.