Digital Platforms

Life insurers continue to face resistance in their quest to sell more polices at banks, a condition largely marked by a lack of technology standardization between banks and insurers, as well as a lack of simple awareness on the part of bank customers.This ongoing struggle was detailed in a recent study by Washington, D.C.-based American Council of Life Insurers (ACLI). The report, titled "Catalyst for Change: Next Steps in Bridging the Cultural Divide Between Banks and Life Insurers," offers specific proposals designed to support the growth of a vibrant bank insurance marketplace. "Creating the successful bank life insurance blueprint involves a series of detailed and precise actions, procedures and processes," states the report, which offers 21 marketing and distribution recommendations for enhancing life sales in bank branches.

For realtors, it's all about location. It's also true that insurers can benefit from understanding the geographic dimension of their data.Writing flood insurance policies is one common way that insurers have applied geographic information systems (GIS), but a new report suggests there are other areas where the technology can be applied to benefit carriers.

The Contracts Update section includes announcements of contracts insurance information technology companies have signed with customers in recent weeks. Contract news can be faxed to Insurance Networking News magazine at (312) 913-1366 or by electronic mail to Stephen.Dwyer thomsonmedia.com Allstream

The dynamics of marketing and selling insurance are rapidly changing. Savvy Generation X members who use the Web to comparison shop for insurance typically have different insurance providers for their auto, life and home. Baby boomers question how much insurance is too much.Given the diversity of today's insurance market, how do you reach your target customers? What do you do to stay ahead of the competition and secure long-term clients for all of your lines of business?

Challenging market conditions, led by accelerating price competition, are causing insurers to look more closely at streamlining their underwriting procedures to defend or improve their profitability. Inevitably, this is creating a new focus by senior executives on data, technology and process management.Although underwriting is a basic building block of the insurance process, traditional methods often are slow, inefficient, inconsistent and inaccurate.

Blue Cross and Blue Shield Plans may begin working with banks to offer Blue-branded debit cards to their members who participate in tax-favored health savings accounts (HSAs) as well as flexible spending accounts (FSAs) and health reimbursement arrangements (HRAs).

MetLife Inc. and Citigroup Inc. today announced an agreement for the sale of Citigroup's Travelers Life & Annuity, and substantially all of Citigroup's international insurance businesses, to MetLife for $11.5 billion, subject to closing adjustments.

Jersey City, N.J.--Reducing underwriting costs through technology is a key goal for insurance organizations in 2005, according to analysis undertaken by Jersey City, N.J.-based ISO.

NORTHBROOK, IL--Allstate is among the best companies for executive women according to The National Association of Female Executives (NAFE). Thirty companies were named to this list recognizing companies for their exemplary programs that promote the advancement of women in top positions. Allstate is the only Illinois based company to be recognized with this distinction.

Tempe, Ariz.-The Progressive Group of Cos. is opening what it believes to be the only insurance group-owned commercial auto claims training facility in the U.S.

SAN FRANCISCO--A new study that details due diligence considerations for institutions seeking an identity theft solution provider has been released by Identity Theft 911, the nation's recognized leader in identity theft resolution, defense, and education. The study examines issues that are too often overlooked by financial institutions, insurance firms, and other organizations as they sift through the diverse offerings that have emerged in response to the identity theft crisis.

JERSEY CITY, N.J.--ISO has acquired AppIntelligence, a provider of Web-based analytic tools designed to identify and detect fraud in the residential mortgage industry. More than 600 customers of the Weldon Spring, Mo.-based company use AppIntelligence solutions in the prequalification, processing, underwriting, quality control/quality assurance and compliance phases of the mortgage-lending process. Customers will not experience any service disruption from the transfer of AppIntelligence's control, both companies stressed. Terms were not disclosed.

EL SEGUNDO, Calif.--Computer Sciences Corporation today announced that five U.S. healthcare consulting organizations have licensed the Johns Hopkins Adjusted Clinical Groups Predictive Model (ACG-PM) software. Encompass Medical Management, Salem Health Solutions, Wakely Consulting Group and two other providers of healthcare management services will use ACG-PM to improve the performance of health plans offered by their employer-group clients.

Addison, TX--Universal Conversion Technologies (UCT), a provider of insurance industry data conversion solutions, today announced it has been selected by CUNA Mutual Group to assist with CUNA Mutual's data conversion project. The conversion involves the migration from two legacy policy administration systems to an existing system used by CUNA Mutual to support its current and future operations. In addition to their proven conversion software, UCT will provide expert conversion services.

Benefitfocus.com Inc., a Charleston, S.C.-based provider of insurance enrollment and benefit solutions, has launched BenefitfocusSM eBilling, an electronic invoice presentment and payment (EIPP) application designed specifically for insurers and their policyholders. The application features three primary components: Web-based invoicing, automated reconciliation, and online bill pay.

AQS Inc., a Hartland, Wis.-based provider of commercial policy administration solutions to the property and casualty insurance industry, has been acquired by Grey Mountain Partners, a New York-based private equity firm. The transaction closed January 12, 2005.

NEW YORK--Vettro, a leading provider of mobile enterprise applications, today announced that Phoenix Life Insurance Company, a subsidiary of The Phoenix Companies, Inc., has selected Vettro RainMaker to empower its sales managers and wholesalers with always-available access to Salesforce.com via BlackBerry from Research In Motion (RIM).

PARSIPPANY, New Jersey--MFX Roanoke Inc. has acquired Atlantic Mutual's data center facility in Roanoke, Virginia. Under the arrangement, which became effective January 1, MFX provides complete, on-site data center processing services to Atlantic Mutual from MFX's new operation. Atlantic Mutual will continue to maintain its technology and customer service center in Roanoke, Virginia.

WASHINGTON--As the Internet becomes an increasingly important resource for informing decisions about health and health care options, a new national survey of older Americans by the Kaiser Family Foundation finds that less than a third (31%) of seniors (age 65 and older) have ever gone online, but that more than two-thirds (70%) of the next generation of seniors (50-64 year-olds) have done so.

Fireman's Fund Insurance Co. has signed a five-year, $42 million contract with AT&T to develop a secure, high-speed, integrated network. AT&T's design and management of an Internet Protocol Virtual Private Network (IP VPN) will provide 4,500 employees in 60 FFIC locations across the U.S. with faster access to data on premiums, claims, insurance quotes and other critical customer information.

HARTFORD, Conn.--The convergence of regulatory environments for the financial markets and the banking industry have created a friendlier climate for multinational life insurers, according to a new study by Conning Research and Consulting, Inc.

NEW YORK--The Guardian Life Insurance Company of America (Guardian) today announced a major expansion of its group small business distribution capabilities. In 2005, Guardian will open dedicated Small Group Sales (SGS) counterparts for each of its Regional Group Offices (RGO) nationwide.

JUPITER, Fla.--With the economy continuing to strengthen, the number of insurance companies that failed in 2004 declined 48 percent, to 13 compared to 25 insurer insolvencies in 2003, according to Weiss Ratings, Inc., the nation's leading independent provider of ratings and analyses of financial services companies, mutual funds, and stocks. Three life and health insurers and 10 property and casualty insurers failed in 2003, compared to four and 21 respective failures in 2003.

Beaverton, Ontario--People looking into new insurance now have a new resource available that will help answer some of the questions they might have when looking for a new insurance company.

WASHINGTON, D.C.--With the start of a new Congress and state legislative sessions, the Independent Insurance Agents and Brokers of America is announcing its legislative agenda for 2005. Top issues for the nation's largest insurance association this year will include the following items:

HARTFORD, Conn.--Most successful small life insurance companies share specific product and performance characteristics giving them an edge among similar and somewhat larger competitors, according to a new study by Conning Research and Consulting, Inc.

WAUSAU, Wis.--With the beginning of a new year, the direct sales force of Wausau Insurance has reorganized as a new legal entity as Wausau Signature Agency.

NEW YORK--Reserve deficiencies, which have plagued property-casualty insurers in recent years, improved dramatically in 2003, according to a new study by Conning Research & Consulting.

Washington, D.C. --The American Council of Life Insurers (ACLI) issued today its 2005 Bank Insurance Study titled, "Catalyst for Change: Next Steps in Bridging the Cultural Divide Between Banks and Life Insurers." The report offers specific proposals designed to support the growth of a vibrant bank insurance marketplace.

Insurance companies historically have been hesitant to outsource core business processes, fearful that relying on vendors to perform processing and support services is a risky proposition. That perception may change, now that one of biggest names in insurance IT is delving into BPO processing and support services for life policies and annuities.IBM Corp. announced in November that it is purchasing Liberty Insurance Services Corp. (LIS), the Greenville, S.C.-based processing subsidiary of RBC Insurance. The new IBM subsidiary will assume LIS' life and annuity processing services for more than a dozen life carriers and will provide contact center management, policy administration and claims processing.

No one knows for certain what regulatory changes will result from New York Attorney General Eliot Spitzer's investigations into unethical sales practices in the insurance industry.But, at press time, state policymakers had already drafted model laws requiring additional disclosure of broker compensation. And, not surprisingly, industry representatives were pleading for prudence.

A new study by London-based research firm Datamonitor suggests U.S. corporations that aggressively invest in speech-enabled self-service technology have the opportunity to reduce long-term dependency on offshore call center operations.However, one insurance call center executive contacted for this article questions the validity of this notion in its entirety, stating that there isn't necessarily a direct correlation between speech-enabled technology investments and offshore call center scale-backs.

The agent/broker compensation model is poised to change, with a departure from commissions based on profitability and volume incentives.A poll of attendees at The Conference Group's 16th annual executive conference for the property/casualty industry in December revealed insurance executives expect changes in the brokerage and regulatory models to have fundamental and long-lasting effects on the industry.

Allianz Life Insurance Co. of North America plans to add bank distribution alliances and increase its multicultural marketing efforts next year, according to the company's new director of sales and distribution. Hayward Sawyer, who joined the company in June and was promoted to the twin posts in December, says Allianz Life is in the process of hiring a manager to expand its bank relationships in the next 12 months."We currently have a couple major relationships, but we want to work with major banks, including regional banks," he says.

The Contracts Update section includes announcements of contracts insurance information technology companies have signed with customers in recent weeks. Contract news can be faxed to Insurance Networking News magazine at (312) 913-1366 or by electronic mail to Stephen.Dwyer@ thomsonmedia.com Affiliated Computer Services Inc.

The carrier's new rating system for personal lines enables Balboa to process new applications quickly, due in part to the solution's Extensible Markup Language (XML) architecture.For almost 30 years, Balboa Life and Casualty Co. provided lender-placed insurance solutions to financial institutions. However, to become a leading player in both the consumer and financial institution spheres, the insurance carrier has begun focusing on introducing growth-oriented personal insurance products, such as homeowners insurance.

Like most large U.S. insurance carriers with aging technology platforms, CNA Financial Corp. was faced with a critical decision: How to modernize a legacy claims system to meet 21st century business requirements. And like other insurers, the Chicago-based commercial carrier is banking on technology that integrates multiple disparate systems, streamlines adjuster workflow, provides more timely management information, and reduces claims and IT costs.

ATLANTA--COUNTRY Insurance & Financial Services of Bloomington, Ill. announced today the closing of two transactions with Cotton States Insurance Group of Atlanta. Under the first transaction, Cotton States Life Insurance Company merged with a subsidiary of COUNTRY Life Insurance Company. In the second transaction, Cotton States Mutual Insurance Company pooled premiums and losses with those of the COUNTRY property/casualty group.

When it comes to IT spending this year in the insurance industry, it's déjà vu all over again. In general, industry analysts concur that U.S. insurance companies will increase IT spending only slightly this year-between 1% and 4%. Last year, they predicted cautious increases of 2.5% all the way up to 6.7%.Similarly, carriers' priorities for IT spending in 2005 will focus on projects that ranked high on the list last year as well. Namely, their attention will focus on IT projects with the potential to increase revenues by improving distribution and customer service, and those that cut costs by streamlining business processes and workflow. Also like last year, insurance executives remain resolute about making sure their technology investments align with business strategy. IT governance is key.

The challenges insurers face with handling paper documents have been well documented. Dealing with reams of paper is one thing. Coping within a manual and de-centralized content management scheme is another.The process of printing and mailing policies is both cumbersome and costly, as is storing policies in archived files. For some, retrieving older, existing policies is akin to finding a needle in a haystack.

The NAIC has adopted model legislation that would implement new disclosure requirements designed to ensure consumers are provided the information necessary to understand the manner in which brokers are compensated for the sale of insurance products. The model legislation amends the NAIC's current Producer Licensing Model Act and is a key component of an aggressive initiative by state insurance regulators to address issues surrounding the use of compensation arrangements by insurance brokers.

SAN FRANCISCO--WorldGroup, a leading provider of flexible, component software solutions for the insurance industry, today announced that it has submitted a signed, definitive agreement to acquire Taliant Software, LLP. Established in 1992, Denver based Taliant has insurance software applications installed and in production use in insurers throughout both the United States and Canada.

INDIANAPOLIS--Anthem Blue Cross and Blue Shield customers can now enroll in their health care benefits through secure, online tools available at http://anthem.com . The new capabilities not only make enrolling fast and easy for employees and individuals, but allow employers to streamline their work, lower administrative costs, and save time, all in an effort to improve the ease of working with Anthem.

GREENSBORO, N.C.- Jefferson-Pilot Corporation today announced it has completed the integration of the U.S. group life, disability and dental business of The Canada Life Assurance Company with its group insurance operation, Jefferson Pilot Benefit Partners, based in Omaha, Neb.

SPRINGFIELD, Mass.--The MassMutual Financial Group announced today that it has launched a new section of its consumer Web site that includes useful information about how financial products and services can help individuals prepare for life events and meet new life challenges. Called "Learn," the material is included on the "For Individuals" portion of massmutual.com, effective immediately.

ATLANTA--The practice of both outsourcing and offshoring has been rapidly rising and will therefore have a huge impact on the business world for years to come, according to a new report available from LOMA, entitled "Outsourcing and Offshoring: Challenges and Opportunities for Insurance Companies."

HARTFORD, Conn.--The Hartford Steam Boiler Inspection and Insurance Company (HSB) today announced it is offering to insurers identity recovery coverage that combines identity theft insurance with services that help victims restore their credit history and identity records.

COLUMBIA, S.C.--Following a new study by the Insurance Research Council (IRC) which found that auto injury claims in four No Fault states have escalated at dramatically different rates, ISO has identified three key areas where software can help reduce the dramatic rise in No Fault auto insurance claims costs.

MAYFIELD VILLAGE, Ohio--The Progressive group of companies, the third largest auto insurance group in the country based on premiums written, today announced the debut of its newest Web site, driveinsurance.com, highlighting the important role that independent agents and brokers play in Progressive's business model.

PEARL RIVER, NY--ACORD was presented with the prestigious Innovation of the Year Award at the 2004 Insurance Day Awards in London on December 1. ACORD President and CEO, Gregory A. Maciag, accepted the award on behalf of ACORD's more than 480 members worldwide.

HARTFORD, Conn.--The paper application for Builders Risk coverage has gone the way of the thatched roof, replaced by electronic application submission, rating, quoting and binding from The

COLUMBUS, Ohio--Grange Insurance is introducing a new extranet Web site for its independent insurance agents featuring technology to streamline business processes. The site also offers comprehensive functionality that helps agents manage the sales process and their Grange policies. The new Web site, http://www.grangeagent.com , is being rolled out to Grange's 1,200 independent agencies.