Digital Platforms

Pointing to economic-driven necessities, the insurer has gone into production with SAP ERP financials, claims next.

A new survey from Aon Consulting reveals that nearly 60% of employers surveyed expect their overall health care costs to rise because of the COBRA subsidy.

Solution provider’s risk modeling and analytic services helped rating agencies and bond investors price, model risk profiles.

The largest workers’ compensation insurer in the state of New Mexico, New Mexico Mutual, reports that it has successfully deployed a billing software system from Guidewire Software, a provider of solutions to property and casualty and workers’ compensation insurers. The insurer, which replaced its legacy system, is now in production with Guidewire BillingCenter as its new billing system, and will use the system to manage the end-to-end billing process including payments, collection agency management and agent commissioning.Using BillingCenter, New Mexico Mutual plans to: * Automate its billing lifecycle while incorporating desired best business practices; * Readily implement system changes in-house without vendor involvement; * Access payment information in real-time for enhanced customer service; * Better manage agent commissions; and * Proactively manage its collection agency interactions. Guidewire BillingCenter is a 100% Web-based comprehensive billing system designed to: make it easier for insurers to manage agent commissions; automate the billing lifecycle; design flexible billing, payment and delinquency plans; and enable rapid integration with external payment systems – i.e. EFT, EBPP, check writing, payroll deduction, etc. BillingCenter is available as a standalone system or as part of the Guidewire Insurance Suite and can be integrated to an insurer’s existing systems or third party applications.

When economic times are a difficult, insurers are challenged with lowering costs and finding creative ways to reduce expenses. KnowledgePay Inc., a company that provides solutions that integrate all sources of compensation and job data with analytic tools to drive HR productivity and business results, offers a checklist of tips for decision-makers on managing compensation, available at http://www.knowledgepay.com/10tips1.html. An organization's compensation philosophy is integral to its culture, say experts at KnowledgePay, which advises insurers and other companies to remain consistent with their company’s core values, mission and vision, even when difficult decisions are necessary. Companies that have always linked performance pay, for instance, should not change course and implement pay freezes, reductions or even layoffs based on unrelated factors, says the company.Another tip from KnowledgePay is to manage compensation by facts, rather than fall prey to knee-jerk reactions. Managers with the discipline to rely on solid compensation data, rather than emotion or headlines, have the best chance of achieving positive, long-term business results. Organizations should also regard the current crisis as an opportunity to review their overall rewards plan, to ensure it encourages behaviors that lead to company success. Management should focus on what is most important for their business to achieve, use their rewards plan to encourage those achievements and try to eliminate unintended consequences. Corporate compensation practices receive intense scrutiny these days, especially with the amount of pay information available online and increased career mobility among workers. Staying focused on future successes won't make today's difficult decisions any easier, but it can improve those decisions - consistent with company culture, based on facts, and focused on improving business results. "No one knows how soon the economy will turn around," said Kelley. "In the meantime, HR and compensation professionals will keep trying to turn lemons into lemonade. 'Ten Tips for Tough Times' is designed to help."1. Keep your compensation philosophy aligned with your mission - vision - values • Your compensation philosophy is integral to your company's culture. It tells your employees "the way we do things" and reflects the core beliefs of senior management. Stay consistent with those values, even when you must make difficult decisions. If not, you risk affecting employee engagement and productivity negatively. If you have worked to link pay and performance, then it probably won't make sense to suddenly decide on pay freezes or reductions, based on factors unrelated to performance — seniority, for example, or "fairness." 2. Manage by facts • In a crisis, we are all tempted to knee-jerk reactions — decisions made without a full understanding of the context and potential impact of our actions. You can avoid both "paralysis by analysis" and overreaction by disciplining yourself to use the best data and employ or even add to your arsenal of analysis and modeling tools. You'll get the best results, if you work to understand the relationships between compensation reduction programs and your key business metrics. 3. Make lemonade • Lately, we've seen organizations announce across the board pay reductions. Certainly there must be a great deal of angst in such decisions; they weren't made lightly. But, just as a "peanut butter spread" approach to pay increases doesn't help company's performance, pay reductions won't necessarily help either. Look for ways to use pay reductions the way you use pay increases - to differentiate activities and performance in ways that will improve results. 4. Embrace change management • Organizations like yours have embraced the concepts underlying change management for almost every operational endeavor. When you make compensation decisions in a downturn, you should be sure to deploy the best change management has to offer. Start by fully identifying all key stakeholders — as in other change efforts that list will get surprisingly long. 5. Challenge assumptions • Reconsider the paradigms you have taken for granted. For example, over years of working with market pricing data, the trend has always been that pay rates rise. Sometimes quickly, sometimes slowly, but always up. Many such assumptions may no longer hold true. As Dorothy once said, "I've got a feeling we're not in Kansas any more." 6. Share information • Even in good times, communication about compensation is often overlooked. In tough times, when the conversations are difficult, there's an even greater need for open lines of communication. Craft a top-notch communications plan to go along with any new compensation program, and make sure it gets executed! It's another chance to make lemonade out of lemons. 7. Consider your overall plan • Take a long look at your rewards plans. Do they incentivize behaviors that your company needs today? Look for unintended consequences in these changed times, and work to get rid of them. Remember, whatever your company rewards, that's what will get done. Understand what your business must achieve in today's climate, and make sure your rewards plans are focused on those achievements. 8. Understand your workforce • Different employee groups will respond differently to changes in compensation programs. If you have a mature workforce with a lot of seniority, employees may prefer reductions in base pay rather than to lose their job. A younger workforce, on the other hand, may focus more on the present value of cash compensation and be less forgiving of a base pay reduction. No one-size-fits-all approach is likely to be effective. It's up to you to understand what is relevant to your workforce. 9. Take the long view whenever possible • None of us has a crystal ball. We don't know how long or severe the current economic downturn will be. But we do know that ROI on human capital is central to our companies' ability to prosper. Studies show that the short-term benefits of reducing headcount are accompanied by problems whose difficulty becomes clear when the pendulum shifts and it's time to re-staff. The cost and lost time of recruitment and training, the missing productivity, and the lost institutional knowledge can be expensive. That's why it's important to think long-term now, even as you make short-term decisions. 10. Know your market • Even a modest investment of time and resources in understanding your labor markets can pay significant dividends in this crunch time and beyond. Know what your local and industry competitors are doing with regards to their pay and staffing practices. Not so that you can follow them blindly, but because understanding your labor market enables you to act in your organization's best interest.This document and other information about strategic compensation management is available free-of-charge at www.knowledgepay.com/10tips1.html.

Carriers expanding offerings to account for rise of piracy.

The president of the National Association of Professional Insurance Agents contends that there are opportunities hidden in the challenges stemming from the current state of the economy.

The industry may still be in the black, but catastrophe and investment losses have taken a toll on the bottom line.

Insurer gets $800 million from its consumer lending division.

When insurance CIOs shrink the carbon footprint of their data centers, improve energy efficiency and promote recycling and telework, they boost the bottom line.

While some say management needs to do something about it, others point to personal accountability.

As a result of the announcement, Hartford Financial Services Group Inc.'s shares rose 13.49% Wednesday, while Lincoln National Corp. soared 32.8%.

Despite the current economic crisis, some health, P&C and life carriers are expanding, not contracting staff, agent networks.

Company says it has no exposure to riskier mortgage assets.

Life insurers will receive bailout dollars in the latest TARP developments.

Overcoming the complexity argument is key for insurance technology vendors spurring carriers to take the next step in moving core systems into the cloud.

Health savings accounts' (HSA) popularity is growing, but their complexity is hindering their broader use as a tax-deferred investment vehicle.

Industry conferences shy away from vendor-led sessions.

Penalty and fee hikes, as well as fingerprinting requirements were not included in the final budget passed by lawmakers.

The troubled insurer divested AIG Life of Canada and Hartford Steam Boiler Inspection and Insurance Co.

The deal breaker for Sun, reports the greater press, was a “slightly reduced” offer from IBM.

Economist Ian Ayres, who recently addressed the Casualty Actuarial Society, believes methods such as neural networks might be beneficial for actuaries when approaching data mining as part of the predictive modeling process.

A study by the U.S. Bureau of Labor Statistics reveals the U.S. insurance industry shed jobs for the fifth straight month.

Shares of Lincoln National, Prudential Financial, Protective Life, Unum Group and Assurant all fell in trading Monday in anticipation of the U.S. life sector posting first quarter losses.

Despite the rough outlook for 2009, industry experts predict IT spending will remain stable, and not reflect the "Dot-com bust" of 2001-2003.

Leading Insurance Services Inc. will change from a stand-alone data capture mechanism to an integrated solution.

The Hartford hopes the cash infusion into a troubled Florida thrift will buy time in hopes the Treasury Department will allow insurers to participate in the program.

While recessions tend to place downward pressure on workers’ compensation exposure, National Council on Compensation Insurance (NCCI) chief economist says this could result in a surge in claims.

Elizabeth Monrad was found guilty of conspiracy, securities fraud, making false statements to the SEC and mail fraud charges.

The average personal injury protection payment for claims from vehicles with seatbelts, but without airbags, was 32% higher than the average for vehicles with front airbags, and 57% higher than the average for vehicles with both front and side airbags.

The Senate approved several amendments yesterday that call on the Federal Reserve Board to release details about institutions that have received assistance during the financial crisis.

MFC Global Investment Management will use the Thomson Reuters Portia recordkeeping system for more than $66 billion in public assets under management.

Instant messages, text messages, blogs and wikis are some of the culprits contributing to content management difficulties.

Fans and critics of the new legislation weigh in after formal introduction.

Former CEO says risk management culture withered after his tenure ended.

Bill intends to protect elderly consumers from fraud.

Insurer will shed 10% of workforce and consolidate offices worldwide.

Insurers say an Optional Federal Charter (OFC) will streamline distribution channels, lower administrative costs and provide more product choices and pricing options for policyholders.

Commissioners’ Mandate Rests on Unfounded Fears

Among other findings in a Willis Re report, the reinsurance market stands out as the only capital market operating smoothly, with buyers able to access large quantities of contingent capital.

WEB-BASED BILLING SYSTEM

IMAGERIGHT AND READSOFT PARTNER ON OFFERINGS

Reinsurers used to operate on experience, intuition and a handshake.

LIMRA/LOMA CEO predicts a vastly different life insurance industry after the financial crisis and economic downturn comes to an end.

Exclusive to INN: Ara Trembly, among industry thought leader contributors.

The Operational Riskdata eXchange Association is one of the loudest voices calling for the creation of a global standard for reporting loss events to regulators.

Aflac and State Farm were the only two companies in the top 25 to buck the trend and record positive year-over-year gains.

A new report from Celent sees double-digit growth ahead for business process outsourcing.

Celent believes that if insurers invest in technology, improve their infrastructure and don’t get too caught up in the prognostication, they'll be able to successfully endure the economic crisis.

Mike Wells, Jackson National's CFO, believes companies will regroup in 2009, as consumers figure out what their risk appetite will be going forward.

Rating agencies review, process 2008 Q4 earnings reports and investment losses, with mixed results.

Financial services organizations may regret taking a reactive stance to the down economy, since holding back on IT spend restricts improving the very systems that create a competitive edge.