Digital Platforms

Toronto, Canada--DWL, a provider of Enterprise Business Services software, today announced that Empire Financial Group has launched phase two of groupweb - an initiative to achieve proven cost reduction with web-based self-servicing capabilities for group business. Following on the success of Empire's initial implementation of DWL InsuranceT for Group Life and Health, which provides a password protected site for electronic plan administration, phase two of the project now adds full update and enrollment capability in real-time, using version 3.0 of DWL Insurance for Group Life & Health.

Increasingly, life and health insurers are underwriting man-made catastrophic risks involving deaths and disabilities resulting from terrorists making use of nuclear, biological and chemical weapons, according to the latest LOMA study on risk exposure for the insurance industry. "The New World of Risk describes these risk exposures in detail and the efforts being made by the U.S. government and other institutions to control them," says Stephen W. Forbes, Ph.D., FLMI, senior vice president of research at Atlanta-based LOMA, and report author.The report also reviews catastrophic loss exposures involving technological networks, a continually expanding universe of legal liability, and global risks that affect all insurance companies and U.S. businesses. "Fortunately, there are actions available in both the public and private sectors that can significantly reduce these catastrophic risks," says Forbes. "The insurance industry has an important role to play in encouraging the implementation of the many well-thought-out methods that are available to improve the risk environment."

TORONTO, April 6, 2004 - SOLCORP, a leading provider of software solutions to the life insurance and financial industries and a subsidiary of EDS, announced today that it is co-sponsoring a global insurance survey in conjunction with partner companies Whitehill Technologies and DSPA Software.

Miami, FL-- SunGard Insurance Systems, an operating group of SunGard, announced today the SunGard VIP sales illustration system has been awarded the Designed for Windows XP logo certification. This certification is a result of a long-standing technology affiliation between SunGard Insurance Systems and Microsoft, further strengthening the Microsoft Gold Certified Partner relationship recognized for many years. SunGard VIP clients running on Windows XP can realize benefits such as greater application stability and efficiency; as well as, the assurance that the SunGard VIP system will be fully functional in later versions of Windows.

WebMD Corp., Elmwood, N.J., has entered into a definitive agreement to acquire Dakota Imaging, Inc., a privately held provider of automated healthcare claims processing technology and business process outsourcing (BPO) services.Dakota's scalable software and BPO services provide automation for mailroom, document processing, scanning, data capture, data scrubbing, automated workflow and online secure document management. Dakota's solutions can reduce costs associated with manual processing of healthcare documents and increase auto-adjudication and auto-payment of medical claims through advanced data scrubbing.

The insurance industry's response to fast-changing regulatory and corporate governance demands is characterized by a primary reliance on manual processes and ad-hoc measures, according to survey conducted by ILOG, a Mountain View, Calif.-based business rules software vendor, and Pearl River, N.Y.-based ACORD.Although specially appointed compliance officers generally have been assigned to manage the impact of regulatory demands, the survey reveals the industry is failing to fully embrace the high business value of information technology when addressing regulatory requirements such as HIPAA and corporate governance demands driven by mandates such as the Sarbanes-Oxley Act.

Insurity Inc., a ChoicePoint company, today announced that Georgia Casualty & Surety, a wholly-owned subsidiary of Atlantic American, has selected Insurity's Commercial Intellisys property/casualty policy processing services and software. A complete Web-based rating, intelligent underwriting and electronic issuance platform is being deployed across 11 states for workers' compensation, commercial business auto, general liability, commercial package and umbrella policies.

An Internet-only health plan for individuals and families, called Net Saver, has been introduced by Health Net Life Insurance Company, a Woodland Hills, Calif.-based health insurer.With Net Saver, there are no paper-based application or enrollment materials. Once a secure, encrypted online application is completed by an applicant, it is downloaded by the consumer for record keeping and submitted at the same time to Health Net for processing. Net Saver's online processes help to speed the application submission process. It's not uncommon for applications to be submitted in the middle of the night by Internet-based brokers such as EHealthInsurance.com, according to Health Net Life Insurance Co.

One-third (34%) of workers believe they may outlive their retirement savings. Among individuals who make less than $25,000, 54% believe they run the risk of outliving their retirement savings. This, according to the 14th annual national Retirement Confidence Survey (RCS) released today by the Employee Benefit Research Institute (EBRI), American Savings Education Council (ASEC), and Mathew Greenwald & Associates.Men are slightly more confident than women (65% versus 61%) when it comes to believing they will not outlive their retirement savings, and married people are more confident than non-married individuals (66% versus 58%). When it comes to long-term care (LTC) in retirement, 51% of workers are confident that they will have enough money to pay for LTC expenses.

OLDSMAR, Fla. -- eAutoclaims today announced that it has secured a two-year contract with Michigan Millers Mutual Insurance Company. eAutoclaims will provide its national network of body shops and independent appraisers (IA) to process Michigan Millers' automobile and commercial heavy equipment physical damage claims.

New York, NY--Atlantic Mutual announced that it closed the sale today of its subsidiary, Atlantic Specialty Insurance Company, and the renewal rights to select commercial insurance business, including the unearned premiums on the acquired book, to OneBeacon Insurance Company, after receiving regulatory approval. The overall gross written premium for this book of business totals over $400 million.

Maine Mutual Group Insurance Co,, a regional provider with operations in Maine, Vermont and New Hampshire, has joined a growing number of companies that are partnering with Trusted Choice, the national branding initiative created to educate consumers about the benefits of using independent insurance agents and brokers.consumer branding initiative. Trusted Choice was created by the Independent Insurance Agents & Brokers of America (IIABA), Alexandria, Va., and its company partners to highlight the benefits independent agencies and brokerage firms offer consumers–choice of companies, customization of policies and consumer advocacy. Just two years after its inception, more than 3,500 independent insurance agencies and brokerages throughout the country are participating in the branding program.

LOUISVILLE, Ky. --Humana Inc. announced today that its subsidiary, Humana Insurance Company, has completed its acquisition of Ochsner Health Plan of Louisiana from the Ochsner Clinic Foundation. Ochsner Health Plan is one of the largest health benefits plans in the New Orleans market and the third largest in the state of Louisiana with approximately 152,000 Commercial medical members, primarily in large group accounts, and approximately 31,000 members in the MedicareAdvantage program. Ochsner Health Plan is licensed in all 64 of Louisiana's parishes.

They say sharing is good, but try telling that to insurance executives overseeing individual business units. Actuaries, underwriters, sales and marketing executives and claims adjusters have long regarded their departmental knowledge as sacrosanct, with the thought of sharing that information akin to giving up one's first-born.Perhaps out of necessity, this cloistered approach to knowledge-sharing might be loosening its territorial grip. Keeping departmental knowledge close to the vest might protect a business's so-called secrets, but reciprocally this approach also prevents a business from tapping into the knowledge that resides within other corporate units, industry experts relate.

If insurance carriers want their online shoppers to become online buyers, they need to give their customers more respect.That's a warning derived from recent analysis of 70 insurance Web sites that gave the insurance industry an average online Customer Service Index of 6.8 out of 10. Furthermore, the analysis reveals that although 93% of insurers post online privacy policies, 35% of them share customer data without the customer's permission.

The credit-based insurance scoring controversy continues with the latest volley coming from the Maryland Insurance Administration (MIA). In January, MIA released a report indicating that the data it had collected in 2003 was insufficient to conclusively determine if credit scoring has an adverse impact on low-income or minority populations.Last month, Insurance Networking News reported that a recent study conducted by the Missouri Department of Insurance found that minorities and low-income populations are harmed by insurers use of credit-based insurance scores (see March 2004, page 8).

The personalized attributes of Web portals have generated appeal among a growing number of insurers. But while Web portals possess a great deal of upside, the return on investment (ROI) prospects that portals-as well as extranets - can deliver to an insurance organization are still difficult to quantify.Despite this uncertainty, the perceived benefits continue to propel portal adoption. A study conducted by Stamford, Conn.-based research and consulting firm Gartner Inc. found that 75% of property/casualty insurers and 83% of life/health insurers have developed distributor portals or extranets.

There was a time when Atlanta-based Ebix Inc. and Darien, Ill.-based Quotesmith.com could have been mistaken for one another, but not anymore. In two strategic acquisitions forged in February, Ebix Inc. continues its quest to emphasize its business process outsourcing strengths. This became apparent when Ebix said it was acquiring LifeLink Corp., a provider of life insurance sales software applications.Based in Park City, Utah, LifeLink designs products in partnership with independent brokerage clients to create multi-carrier sales proposals.

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 magazine at (312) 913-1366 or by electronic mail to Stephen.Dwyer thomsonmedia.com Computer Sciences Corp.

When economic times are tough, executives turn their focus to increasing revenues and reducing costs. It's easy to say, but executing this simple idea can prove much more difficult, especially in the insurance industry.The events of Sept. 11, 2001 and the recession have brought the healthy profits the insurance industry saw in the 1990s crashing down into the depths of financial hardship.

BOSTON-- The family with a car each for dad, mom, the college sophomore and the high-school senior. The tenant in apartment 2B who's never had a ticket or an accident in 20 years of driving. The distracted shopper who backed into another vehicle in the supermarket parking lot. With OneChoice Auto, OneBeacon Insurance is delivering comprehensive protection to fit the needs and lifestyles of a broad range of Maine drivers. "We've expanded our approach to auto insurance significantly," said Dan Bridge, Vice President of Personal Lines New England for OneBeacon, "and we're now able to offer insurance solutions to most drivers and for most vehicles in the state. The key is to meet customers' needs at a price that's competitive in the marketplace yet appropriate to the skill levels and driving histories of individual operators."

INDIANAPOLIS--Anthem Blue Cross and Blue Shield continues to make managing health care benefits easier for its members through its award-winning Web sites. MyAnthem, Anthem's new personalized member Web site available at anthem.com , provides members an individually tailored online experience that offers quicker, easier and more efficient access to self-service tools and member-specific health information. "Members come to anthem.com for four reasons: to view their membership information, to choose or change health care providers, to learn about health and wellness, and to shop for health-related products and services at discounted prices," said Mary Scanlon, Anthem's vice president of eBusiness. "We simply designed MyAnthem for our members based on the way they use anthem.com -- all in an effort to make managing their health care easier than ever."

Tomorrow's workforce will be older, heavier and unable to retire, according to CIGNA's disability claim operations leader Mark Marsters. Speaking at the recent national Disability Consulting Group (DCG) conference, Marsters outlined the profile of the future workforce and some of the major factors likely to shape integration of health and disability benefits in the next decade.Health care costs, the aging workforce, and the economy are three of the main suspects that will conspire to shock the health and disability industry, according to Marsters, senior vice president at Philadelphia-based CIGNA Disability Management Solutions.

The Principal Financial Group has developed a comprehensive educational program to help consumers and health members better understand their benefits and take charge of their health. Members with medical coverage issued or administered by Principal Life can go online to access their group medical benefit information, including claim status, booklets, explanation of benefit statements and Principal Reimbursement Arrangement balances (if applicable).

Profits of the nation's life and health insurers jumped $14.8 billion, or 437%, to $18.1 billion in the first nine months of 2003, the best third-quarter increase in a decade, according to Weiss Ratings Inc., a Jupiter, Fla.-based independent provider of ratings and analyses of financial services companies, mutual funds and stocks.Driving the industry's steep profit growth, the change in reserves fell to $101.5 billion for the first three quarters of 2003, an $11.8 billion decline compared to the $113.3 billion change in reserves reported for the same period in 2002. The five life and health insurers responsible for nearly 90% of the changes in reserves were Kemper Investors Life Insurance Co., General Electric Capital Assurance Co., Prudential Insurance

The St. Paul Companies Inc., St. Paul, Minn., and Travelers Property Casualty Corp., Hartford, Conn. have received all required regulatory and shareholder approvals for the previously announced merger of the companies.The companies intend to close the transaction on April 1, 2004. The common shares of St. Paul Travelers will be traded under the New York Stock Exchange symbol STA.

U.K.-based Watson Wyatt LLP has spun off its Boston-based insurance and financial services strategic consulting group with a management buy-out led by two senior managers.This follows a review of Watson Wyatt LLP's insurance and financial services consulting strategy in the United States which resulted in a decision to focus on the firm's core life and non-life actuarial consulting business.

COLUMBIA, S.C. -- Indiana Farmers Mutual Insurance Company has signed contracts to implement AcroSoft's Insurance Content Management solution. The initial implementation will include the AS Docs System together with its ad-hoc workflow capability and web application interface, which lets agents and adjusters access their company's document repository via the Internet.

SPRINGFIELD, Mass. -- Massachusetts Mutual Life Insurance Company (MassMutual) announced today its support of an important legislative proposal -- by House Financial Services Committee Chairman Michael G. Oxley (R-Ohio) and Chairman Richard H. Baker (R-Louisiana) of the Capital Markets, Insurance and Government-Sponsored Enterprises Subcommittee - that would modernize an outdated state-based regulatory system. The Oxley-Baker proposal calls for enactment of national regulatory standards to make state insurance regulation more uniform and efficient while creating a more dynamic and responsive marketplace for consumers.

Following nine months of development, the Independent Insurance Agents & Brokers of America (IIABA), Alexandria, Va., also known as the Big "I," has released an upgraded version of the Big "I" Markets software to their more than 3,500 participating agencies (8,000 registered users).Big "I" Markets Version 1.2 offers more secure technology, easier navigation and an increased capacity to take on new products, according to IIABA.

Pearl River, N.Y.-based ACORD has enhanced the role of its Industry and Government Affairs unit by adding a legal capacity with the addition of Gary Bel, vice president, general counsel and corporate secretary, and Kate Ciravolo, vice president and counsel, government affairs. Their addition strengthens the Industry and Government Affairs operation and widens the scope of ACORD's involvement in the development of standards. It also expands the representation of ACORD's membership throughout the industry and regulatory agencies. Bel and Ciravolo will also be handling the general legal activities of the corporation within the in newly combined Legal, Industry and Government Affairs Department."As new regulations and data requirements are implemented across the nation, their impact on the insurance industry continues to grow. The need for data standardization to assist organizations in efficiently and economically complying with these changes is becoming ever more essential," said Gregory Maciag, president and CEO of ACORD. "We've expanded the Industry and Government Affairs group to meet these new demands."

The Principal Financial Group is now providing online claim reports for its group life and disability insurance products to help ease the employee benefit administration process for employer customers.

NEW YORK--The Guardian Insurance & Annuity Company, Inc. (GIAC) announced today that it will reintroduce its Guardian Advantage group variable annuity, a funding vehicle for qualified retirement plans. GIAC intends to initiate new sales by June 1. This decision has no impact on Guardian's other defined contribution products including 401(k) PLUS with The Park Avenue Portfolio.

BOSTON--John Hancock Life Insurance Company (JHLICO) is now offering an inflation-adjusted retail note, an addition to its SignatureNotes program. The inflation-adjusted SignatureNotes will be a medium-term note offering, but have a two-part coupon. The first part is based on the year-over-year change in the Consumer Price Index (CPI). The second part is a fixed amount, set at the time of the offering, which is added to the year-over-year percentage change in the CPI.

Washington, D.C.--The American Council of Life Insurers (ACLI) announced today that it is joining with Computer Sciences Corporation, a leading information technology services provider, to evaluate state and federal regulatory environments for the U.S. life insurance industry, report on the economic impact of the current state-based charter system, and assess the potential for improvement under an optional federal charter system.

ATLANTA--Sun Microsystems, Inc., the creator and leading advocate of Java technology, today announced that it is working with Research In Motion (RIM) to extend mobile Java Web services technology to the more than one million customers currently using BlackBerry. Sun and RIM will enable the end-to-end secure delivery of enterprise data via BlackBerry based on Sun's Java Enterprise System, Java technology for mobile devices, and Web Services technologies.

BIRMINGHAM, Mich.--Richard P. Poyle announced today the formation of an innovative new enterprise called PKC. PKC will provide consulting and inspections to the insurance industry -- but PKC is much more than the typical insurance inspection company. "The vision is to provide a critical service bridge between underwriters and insured companies. Too often we find that vital risk management and loss control systems are lacking or not properly in place. The gap between the insured and the insurer hurts both parties. PKC will close that gap with consulting services, inspections, training services and documentation," said Poyle. PKC is an acronym that stands for the three principals of the new entity: Richard Poyle, Dianne Kennedy and Gary Copeland.

NEW ORLEANS--Managing general agencies, wholesalers and their agency customers can take advantage of expanded nuServe software providing an organized approach to indicating, rating, and binding business as well as processing claims and endorsements.

WASHINGTON--Employers with lower health care cost increases for 2004 more often encourage workers to take responsibility for their health care decisions, according to the 9th annual National Business Group on Health/Watson Wyatt health cost study.

HARTFORD, Conn.--Insurity Inc., a ChoicePoint company, today announced that AEGIS Insurance Services, Inc. has selected Insurity's Commercial Intellisys property/casualty policy processing services and software platform. The company is the managing general agent for AEGIS, a leading insurer of utilities and related energy businesses.

PORTLAND, Ore. -- Standard Insurance Company, a subsidiary of StanCorp Financial Group, Inc. has launched 401(k) on the Brain, a new financial educational series for participants in The Standard's retirement plans. 401(k) on the Brain was developed by The Standard to provide in-depth retirement planning education for participants. It uses everyday language and a humorous, interactive approach to address a wide range of retirement, investing and financial planning topics.

Safeco Corp. has entered into a definitive agreement to sell its life and investments operations to a group of investors led by White Mountains Insurance Group, Ltd., and Berkshire Hathaway Inc. The sale includes Safeco Life & Investments' life insurance, group insurance, annuities and mutual fund businesses. The purchase price is $1.35 billion, and could include additional proceeds based on June 30, 2004 statutory book value.

Travelers Property Casualty Corp. announced that it has executed a definitive agreement settling asbestos-related statutory-based direct actions pending against Travelers under various unfair trade practices acts and similar statutes, including the Wise, Meninger and Cashman purported class actions and similar cases. The settlement in principle was previously announced on November 21, 2003.

Sapiens International Corp.has announced results of its survey of U.S.-based senior insurance executives on industry IT trends conducted at the ISOTech tradeshow in Anaheim, California, in late 2003. The survey uncovered an industry inclination toward short-term solutions and quick fixes that could harm companies downstream.

DALLAS-- Entrust Inc., a global leader in securing digital identities and information, today announced that Aon Limited, a leading global insurance broking, risk management and human capital consulting company, is expanding its use of the Entrust Secure Identity Management Solution by capitalizing on Entrust's innovative CPU-based pricing model to make deployment of its Web-based applications more cost effective.

PHILADELPHIA--CIGNA today released the findings of a new study that reveal an unmistakable trend: Integrating disability with health care programs has the potential to lower employers' total benefits costs and help disabled employees get back to work sooner and stay at work. As a result of the positive results found in the study, CIGNA is lowering its prices on disability benefits purchased with CIGNA medical coverage.

ATLANTA, March 12 --In follow-up to definitive agreements announced with Atlanta-based Cotton States Insurance Group in December 2003, COUNTRY Insurance & Financial Services has filed the required Form A with the Georgia Insurance Department to seek approval of the proposed transactions.

OLDSMAR, Fla. --eAutoclaims, a provider of claims management services, and ADP Claims Services Group, a leading provider of integrated business solutions for the property and casualty, collision repair and automotive recycling industries, announced today an agreement offering insurance carriers a new service to more efficiently and effectively administer their managed repair programs.

Travelers Property Casualty Corp., Hartford, Conn., assisted the New York Attorney General's Office and the New York Insurance Department's Auto Fraud Unit in a major investigation that led to a 100-count indictment charging 11 people and seven corporations, including health care providers, attorneys and a network of recruiters, for engaging in a scheme to defraud insurance carriers of an estimated $1 million.New York's No-Fault law allows reimbursement to medical facilities for services provided to persons injured in motor vehicle accidents. The defendants are charged with manipulating New York's No-Fault system by soliciting motor vehicle accident victims to attend Queens-based IK Medical P.C., and submitting fraudulent claims for treatment that had not been provided and for medical procedures that were unwarranted. Among the charges the defendants face are scheme to defraud, money laundering, grand larceny, insurance fraud, and falsifying business records.

New York Life Insurance Co. has unveiled an educational online resource for African—American consumers at www.newyorklife.com/africanamerican. The site is intended to increase awareness and understanding of the protection and wealth building aspects of life insurance, annuities and the company's financial products. Centered on education, the site will be updated regularly with articles targeted toward individuals, families and businessowners.In addition to offering details on insurance and financial planning, the site contains information on the company's commitment to diversity, supplier diversity program, diversity—themed messages in its current advertising campaign, job postings, and various awards for being an outstanding employer in the African—American community.

Investment professionals wanting to help clients better plan for retirement investing and distribution now have access to a tool capable of modeling both. Columbus, Ohio-based Nationwide Financial has introduced its Nationwide preVIEW tool, located on the company's sales and service center Web site at www.bestofamerica.com. "Investing for retirement is only half of the retirement financial equation," said Richard A. Karas, president of Nationwide Financial Services Distributors Inc. "Investment professionals should be enabled with answers to the complete equation, which includes calculating accumulation and distribution needs. This tool can help producers develop personal defined benefit plans for their clients."

Wilmington, Del.-based Rockwood Programs has initiated a promotional campaign designed to raise market awareness regarding its Sponsored Errors & Omissions Program. This campaign will be aimed at insurance companies and Managing General Agencies with large sub-producer networks.