Digital Platforms

London - Regulatory overkill is the greatest risk facing the global insurance industry, according to London-based Centre for the Study of Financial Information's (CSFI) latest Banana Skins survey, in association with PricewaterhouseCoopers (PwC) LLP, New York.

North Richland Hills, Texas - Katherine "Kay" Phillips, who joined HealthMarkets in July 2006 as vice president and deputy compliance officer—Corporate Legal, was promoted to chief compliance officer and associate counsel. In her new capacity, Phillips will have responsibility for and direct compliance programs for North Richland Hills, Texas-based HealthMarkets.

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

Orlando, Fla. – More than 2,300 attendees gathered in Orlando this week for the ACORD/LOMA 2007 Forum. Since the two organizations presented its first joint forum four years ago, the insurance industry has moved at a faster clip, with technologies such as Service Oriented Architecture, business process management and straight-though processing taking center stage. The show's theme, "Identify, Innovate, Inspire," was evident throughout the conference, highlighted by topics presented in more than 80 sessions over the three-day conference. Outside of session time, traffic was brisk in the exhibit hall, where more than 180 solution providers demonstrated their wares. Greg Maciag, CEO of ACORD, told members of the insurance industry's official standards body that it has never been more critical to get everyone onboard as to the value standards play in the industry's success. "True competitive advantage is available to those who break down silos and barriers in order to enjoy the cost and time savings inherent in standards' use," he said. During the conference, LOMA, which claims 1,200 members in the life, health and other financial services sectors, launched its Corporate Learning Solutions Practice, a program designed to provide members with updates on solutions such as online courses and certificate programs specifically geared toward their professional needs. On Monday, May 21, Insurance Networking News, a SourceMedia Company, and Financial Insights (an IDC Company) released the results of the 2007 InsureTopTech awards to a standing-room only crowd outside the exhibit hall. As an official ranking of top solution providers based on an industry-wide poll of insurers, InsureTopTech is being called the "voice of the market." Several in attendance remarked that it seemed by design that the InsureTopTech awards followed the "Identify, Innovate, Inspire" theme of the conference. During her opening remarks, Insurance Networking News' editor in chief Pat Speer explained the significance of the awards. "The fact is, in a world in which the technology vendor community is shifting and contracting, insurers do have options, and they can use this vendor ranking to make well-informed buying decisions. Our readers who voted in this important program extended their voices in a chorus, making it possible for insurers to do just that." The overall winner, Guidewire, San Mateo, Calif., took home awards in five categories (see below for all categories and related winners). Most Adds Value1. Guidewire2. Sircon3. Hyland Software Up-and-Coming 1. Guidewire2. Hyland Software3. CSC Keep the Business Operating1. Guidewire2. CSC3. IBM Keep Insurer Informed Through Analytics1. Business Objects, Cognos (tied)2. IBM3. SAS Help Maintain Financials1. Peoplesoft (Oracle)2. Fiserv3. CSC Help Develop / Enhance Products1. Hyland Software2. Guidewire3. IBM Help Provide Quality Customer Care1. Guidewire2. Hyland Software3. AT&T, Avaya, Sircon (tied) Optimize Workflow and BPM1. Hyland Software2. IBM, ImageRight (tied)3. Ravello Other Areas (middleware, system integration, outsourcing, hardware)1. IBM2. HP3. Oracle, Dell (tied) The Identify, Innovate, Inspire, theme was also prominent during the Tuesday, May 22 CIO Roundtable general session, moderated by Maciag, who was joined on the stage by Ann Purr, LOMA's second vice president, information management; Saad Ayub, chief information officer for sales and service applications at The Hartford; Jeff Carlson, senior vice president, CIO for the Domestic Life Companies of AIG; Paul Fox, CIO, Guy Carpenter; and Ursuline Foley, senior vice president and CIO, XL Reinsurance. Maciag presented a number of challenging questions to the group, but received the most passionate responses to the question: do vendors understand our business, or do carriers need to do a better job of explaining their requirements to them? "They are getting better," said Carlson. "The days of us looking at a monolithic application are over. We are in a component world now and vendors recognize this." Foley maintained that vendors face a dilemma, especially in the life insurance area. "They are tight with our users' groups," she said. "They need to respond to users on a day to day basis but also look at taking the platform further. To a large degree, [vendors] are losing an opportunity. They need to provide more service oriented architecture components for the future." For more information about the ACORD/LOMA 2007 Forum, please visit www.acord.org. Sources: ACORD, INN

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.

Oakbrook Terrace, Ill. - The Computing Technology Industry Association (CompTIA), a provider of vendor-neutral certifications for technology professionals, announced that five more companies in the printing and document imaging business are supporting development of a professional certification for the industry’s technicians.

NEEDHAM, Mass. - TowerGroup has picked 22-year insurance industry veteran David West to lead the firm's Insurance practice.

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.

Johnston, R.I. - Financial executives at the world's largest companies expect the severity of their most prevalent business risks to remain constant or intensify through 2009, according to the "Managing Business Risk Through 2009 and Beyond" study commissioned by commercial and industrial property insurer FM Global, Johnston, R.I. Executives identified the top three biggest threats to their organizations' revenue as competition, followed closely by supply chain disruption and property-related risks. The study also reveals a range of emerging risks that, while not among their primary concerns today, executives say could pose challenges in the years ahead. The study findings include the perspectives of more than 500 financial executives in North America and Europe-including CFOs and treasurers-who work for companies with at least US$500 million or more in annual revenue. Among the key findings:-- Of financial executives in the study, 62% expect risk from competition to increase through 2009, while only 4% expect it to decrease. -- Nearly one-quarter of financial executives expect supply chain risk to increase through 2009, while only 8% expect it to decrease. -- The top five emerging threats for corporations include changes in competition, government and regulatory developments, pricing volatility, variable client demand and political threats. --In the years ahead, finding enough time, money and people will be the biggest challenge to implementing a strong risk management program, said 56% of financial executives. -- More than one-third of financial executives expect a significant challenge in getting senior management to make risk management a top priority. -- Attitudes about managing business risk vary significantly among financial executives in France, Germany, North America and the United Kingdom. Consequences of Risk "This year's study results are a forceful reminder that managing business risk is a continuous, dynamic process, and not something a company can afford to be complacent about," said Ruud Bosman, executive vice president at FM Global. "Successful organizations proactively identify and address the threats they face today, while never losing sight of emerging risk on the horizon." More than one-half of the financial executives warn that a disruption to their top revenue driver can mean a loss of competitiveness, which can translate into both a loss of market share and reduction in their company's valuation. Additionally, almost one-quarter of executives report such a disruption could result in employee layoffs and/or an adverse impact on the local economy. Other top potential consequences executives cite include having to exit a line of business, undergo leadership changes, witness their company's credit rating downgraded, or face regulatory scrutiny or legal action. "As the financial executives interviewed for this study warn, the price of a major business disruption can far outweigh the cost of effective risk management," says Bosman. "Organizations that may be tempted to shortchange their risk management efforts face potential consequences ranging from the severe-a loss of competitiveness-to the catastrophic-having to cease operations altogether." Differing Country Views While financial executives in Europe and North America share many of the same concerns about the state of business risk, the study reveals a number of significant differences between the attitudes of executives based in the United Kingdom, and those of senior management in France, Germany, and the United States and Canada. For example: -- A higher percentage of North America-based financial executives are concerned about risks related to supply chain and property than their counterparts in Europe, who tend to focus more on risk related to competition. -- On average, 59% of financial executives say a loss of competitiveness is the most serious consequence of risk affecting their top revenue driver; however, only 37% of financial executives in France feel the same way. -- While nearly two-thirds of executives in the United Kingdom and North America cite downside risk as posing the most prevalent threat to their revenue, the same applies to only 45% of Germany respondents. -- U.K.-based financial executives routinely express more pessimism than their counterparts elsewhere: Of U.K. executives polled, 62% worry about a loss of competitiveness compared with 51% of all other respondents. -- Of U.K.-based respondents, 24% say a disruption can lead to exiting a line of business or ceasing operations all together, and 21% say it can lead to leadership changes. By contrast, only 10% of all financial executives worry about exiting a line of business or ceasing operations as a result of a major business disruption, and only 8% worry about leadership changes. The study is available online at http://www.protectingvalue.com. Sources: FM Global, PR Newswire

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

Needham, Mass. – For service-oriented architecture (SOA) to fulfill its potential, carriers and vendors need to become more aggressive in establishing enterprise governance, in adopting process and data standards, and in testing and managing service-oriented solutions, according to a study by TowerGroup, a research company based here.

Mountain View, Calif. – Vimo.com, an Internet comparison-shopping site for health insurance, shows that premiums are higher in states regulated by "guaranteed issue," which requires health insurance companies to accept applicants regardless of their health.

Stamford, Conn. - A study of catastrophic life insurance conducted since the September 11 (9/11) tragedy confirms that the life insurance industry's catastrophe reinsurance buying habits and risk management needs have changed significantly over the past five years. The study, conducted by Towers Perrin, explores how the life insurance industry's practices have evolved, what factors are driving the changes, and the industry's level of satisfaction with the exposure management tools currently available."In the years following 9/11, there has been a lot of discussion regarding how the life catastrophe market has changed. This survey provides important and non-anecdotal industry data about how insurers are managing their risk concentrations, and how they are evaluating reinsurance and risk retention strategies. The overwhelming sentiment among insurers is that coverage is still expensive relative to the perceived risk of life catastrophes," says Michael Plappert, vice president with Towers Perrin's life, accident and health practice, which is housed within the Reinsurance business.

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.

Des Plaines, Ill. – The nation's property and casualty insurance companies are calling for a united front in the fight against fraud after completing a two-year study that showed the industry’s efforts have been fragmented and inadequate.

WARREN, N.J. - When agents and brokers suggested that stories about losses are an effective way to illustrate the need for specific insurance products, the Warren, N.J.-based Chubb Group of Insurance Cos. listened.

New York - Insurers have made great strides in combating money laundering but many have yet to apply the power of IT to the problem, a trend some experts see as troubling.

Kansas City, Mo. - The National Association of Insurance Commissioners (NAIC) has adopted a model law development framework as part of an effort to respond to state, federal and international regulation.

Boston – Liberty Mutual Group, which has headquarters here, is acquiring Fairfield, Ohio-based Ohio Casualty Corp. for $44 per share in cash. The transaction is valued at about $2.7 billion.

Washington - Federal, state and local governments, the private sector, and American citizens themselves must be substantially better prepared to face the devastating impact of future mega-catastrophes, according to The Financial Services Roundtable, headquartered in Washington.

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.

New York - Joyce A. Phillips will join American Life Insurance Company (ALICO), a subsidiary of American International Group, Inc. (AIG), as its president and chief operating officer, effective July 9. Phillips will report to AIG Executive Vice President Rodney Martin, Jr., who is ALICO chairman and chief executive officer and chief operating officer of the organization's Worldwide Life Insurance division.

Washington - Americans show a strong interest in controlling their own electronic medical records, according to a national survey released at a health IT conference.

Malvern, Pa. – Members of the CPCU Society (Chartered Property Casualty Underwriter designation) now have access to an online tutorial that offers fundamental information about captives, the association reports. In its CPCU Society's May CPCU eJournal monthly electronic publication, "Captive Insurance Industry-What is it? Where is it? Why is it Important?," the association attempts to explain the mysteries of the captive insurance industry in plain English, starting with the history of captive insurance, the differences between captive insurance companies and traditional insurance companies, and the future market for captive insurance. The issue was written by Dennis Childs, CPCU, ARM, AMIM, ARe, RPLU, ASLI, MSIM. Childs is currently assistant vice president, commercial lines, product development, for Ohio Casualty Group. He received his CPCU in 1986 and has 35 years of experience in the insurance business in various underwriting and marketing roles with national carriers. Childs holds a B.A. degree from Transylvania University, and an M.B.A. from Boston University, with a specialization in insurance company management. Childs says that captive insurance companies have several definitions, but for the purposes of this article, he uses the following, from Kathryn Westover of the International Risk Management Institute: "A captive insurance company is a company that is wholly owned and controlled by its insureds; its primary purpose is to insure the risks of its owners, the primary beneficiaries of its underwriting profits are its insureds.” Beginning with the history of the captive insurance industry-with the first captive formed in Bermuda in 1963-Childs explains the multiple reasons behind the formation and subsequent growth of the captive insurance industry. He says the primary reason for the increase in popularity of this form of insurance was "the failure of the traditional insurance companies to meet the needs of an ever-growing and complex business unit." Childs also explains where the more popular captive domiciles are located and why captive insurance companies are important to the insurance industry and to commerce in general. Some current market status facts that Childs presents include the following:* There are 4,355 captive insurance companies worldwide.* Bermuda is the leading captive location of domicile, with 1,400 captives.* Currently 65 percent of Fortune 500 companies utilize a captive to meet at least one or more of their insurance needs.· Tillinghast estimates that the captive market now has $30 billion in annual premiums, and $130 million in assets worldwide. Childs concludes with some comments on what the future may hold in this area of insurance, saying "to meet the needs of corporate risk management for innovative and unique solutions to individual risk management, the need for captive insurance solutions will continue." The CPCU Society is headquartered in Malvern, Pa. Source: CPCU Society

As always, discord roils the insurance industry. Factions battle over issues ranging from flood insurance reform and surplus lines legislation to state vs. federal regulation.Yet the splinter groups seem to agree on a couple of things. One is the desire to reduce regulatory involvement in day-to-day business. Why? Because, many carriers say, removing the compliance monkey wrench would reduce costs, increase the bottom line and make it easier to compete in our global marketplace.

The article "Brokers Cast a Wide Net With Electronic Exchange" in the March 2007 issue of Insurance Networking News brought a smile to my face. It confirmed the adage about nothing being new under the sun.During the 1970-1973 time frame, a group of brilliant, creative insurance and IT people in the Boston area formed a company called Transystems International. Their mission was to develop a system to facilitate placement of commercial lines risks over a proprietary network with a combination of hard copy and voice communications. More than $4 million (big bucks then) was spent in R&D during the analysis and design phase by about 40 people. Numerous discussions were held with Lloyds about the feasibility, data requirements, etc. Much of the systems design, data analysis and protocols had been worked out.

VOIP RECORDING PORTFOLIO EXPANDED BY CTI GROUP INC.CTI Group Inc., Indianapolis, a provider of VoIP call recording communications, has expanded its VoIP call recording portfolio to include SmartRecord Cards and Recording-enabled SIP Trunks.

CHUBB GOES TO SEA AS WELL AS TO WEB

Joe Beneducci, president and chief operating officer of Novato, Calif.-based Fireman's Fund Insurance Co., has urged lawmakers to grant insurance carriers their choice of state or federal regulation. INN asked him about those options.INN: States regulate the insurance industry. Why would some insurers want to switch to federal oversight?

Hartford, Conn. and Indianapolis - Two insurers—Travelers and Anthem Blue Cross and Blue Shield—announced online tools for their customers. Hartford, Conn.-based Travelers announced new technology launches: Umbrella Wired and OSHA Recordkeeping, as a new component of e-CARMA.Umbrella Wired online software program is designed to simplify the rate, quote and bind process for agents who offer small commercial umbrella liability policies.

Warren, N.J. - C-level executives and risk managers may not always see eye-to-eye when it comes to the risks associated with international expansion, according to the 2007 Chubb International Risk Survey. More C-level executives (43%) noted that international risks pose a greater threat to their companies than domestic risks, compared to only 16% of risk manager respondents. There are also differences in the types of risks that C-level executives and risk managers are most concerned about when it comes to the companies' multinational exposures. The survey reports 24% of risk managers cited natural catastrophes such as hurricanes and earthquakes as the top threat posed by a company's overseas business operations or the business it conducts abroad, and 24% of C-level executives found terrorism to be the top threat. "The findings illustrate the importance of an emerging trend toward closer collaboration between an organization's risk manager and its most senior executives," said Kathleen Ellis, senior vice president, Chubb & Son, and worldwide manager of the Multinational Risk Group for Chubb Commercial Insurance, Warren, N.J. "To effectively allocate resources, organizations need a clear, agreed-upon big picture of global risk-one that's built on many perspectives. Companies that don't take this holistic approach could find themselves unexpectedly self-insuring losses that occur outside the United States and Canada." Professional liability evolving internationally Respondents' perspectives also differed on international trends in professional liability. More than half of C-level executives (59%) believe that employment practices liability is becoming a more serious source of risk outside the United States and Canada, while most (55%) risk managers say directors and officers liability is becoming a more serious source of risk. "These differing viewpoints on employment liability practices and D&O liability are intriguing, and we are keeping an eye of both issues-especially D&O liability," said Evan Rosenberg, a senior vice president at Chubb & Son and global specialty lines manager for Chubb Specialty Insurance. "There have already been more than a few significant D&O liability lawsuits in Europe. In addition, as more countries develop their own insurance marketplace, more of them could make D&O insurance compulsory or require the purchase of a locally admitted D&O policy to comply with local admitted laws. "Companies also need to recognize that some corporate governance trends start outside the United States. For instance, many European countries are taking a more aggressive position on disclosure than their counterparts in the United States on the global warming issue," said Rosenberg. According to Chubb's survey, only one in four companies (25%) is studying the impact of global warming on their business. "We have seen numerous shareholder proposals in the proxy statements of U.S. companies with respect to global warming; however, we have not seen a lot of disclosure from U.S. companies about what they are doing or their position with respect to global warming." Global growth continues "The ability to identify and successfully address emerging international exposures becomes increasingly critical as companies continue to become more global in nature," said Ellis. Of total survey respondents, 67% indicated that their company is likely to expand its operations outside the United States and Canada in 2007, and 86 % anticipated that revenue from these operations is likely to increase over the next five years. Respondents planned on growing their businesses through a variety of ways, including the introduction of new products (72%), an increase in employee headcount (66%), opening a plant or an office (62%) and the acquisition of another company (47%). Overall, survey respondents identified the following as the top threats to their overseas business operations or the business they conduct abroad: terrorism (18%), natural catastrophes such as hurricanes and earthquakes (17%), political instability (13%) and supply-chain failure (13%). In addition, the survey reported that the economic and political forces expected to have the greatest impact on a company in 2007 include increased competition (23%), rising fuel costs (15%) and the devaluation of the dollar (14%). "Today's multinational companies face diverse exposures to risk, and this makes it critical to develop enterprise-wide risk management programs," said Ellis. "Corporate executives and risk managers must look at all the risks to their business, domestic and international and whether they are insurable or not, if they wish to more fully protect their business operations." The 2007 Chubb International Risk Survey was conducted jointly in March 2007 by Opinion Research Corporation, a worldwide research firm in Princeton, NJ, and the Chubb Group of Insurance Companies in Warren, NJ. The Internet survey queried chief executive, operating and financial officers as well as risk managers at 242 U.S. companies. Summaries of the major report findings can be found on Chubb's Web site at http://www.chubb.com/corporate/chubb6893.pdf. Source: Chubb

South San Francisco - Financial services firms and banks have a far less clear picture of their business, and the factors that will ensure their future success, than they imagine, according to a report authored by Bernard Marr, a world expert in Strategic Performance Management and research fellow at the UK-based Cranfield School of Management. The report, 'Managing Strategic Performance in Banks and Financial Services Firms; From Going through the Motions to Best Practice' was published by Actuate Corp. a South San Francisco provider of intelligence, performance management and reporting applications, takes an in-depth look at 15 of the world's leading banks and financial services firms (including retail banks, investment banks, universal banks, one central bank and a mutual financial services firm) and their approaches to Performance Management to determine where firms are going wrong. At each company, between two and eight different principals, from MD to COO and CEO, were interviewed at great length about their Performance Management strategies. The report shows that many banks and financial services firms have been lulled into a false sense of security through over-reliance on historical financial information as their guide. They are failing to measure and manage the likely drivers of future performance - such as reputation, talent, customer relationships and organizational culture. Distracted by irrelevant and misleading performance indicators, or worse, failing to observe any of these indicators at all (despite being at pains to gather the data), organizations are selling themselves short by charging ahead with new business strategies, without bringing the rest of the business with them, or ensuring that every part of the firm is aligned with its current goals. This new report reveals that banks and financial services firms typically fall into three common traps when they approach Performance Management: measurement, compliance and risk - regardless of how formally they are managing performance, or the sophistication of the tools they are harnessing. Bernard Marr explains, "Despite being overrun with supposedly valuable performance data, many organizations appear to be plodding on regardless of the results. Already bloated Performance Management systems are being further obscured by compliance-related measurements, even though these might have little bearing on the future health of the business as measured by revenues, profit margins, competitive positioning and customer perception." Bernard continues, "Risk management activities, so vital in the financial services industry, are further clouding the picture. When these are not considered in the context of the wider goals of the business, organizations find themselves held back unnecessarily - or exposed to far greater risk than may be worth it for the business." In addition to identifying the challenges that organizations are facing, the report offers a series of best practices which include the effective application of Performance Management techniques, as well as the importance of measuring the factors that matter - not those which can be monitored most readily. These best practices are intended to guide firms toward success as they create a clearly focused, company-wide strategic performance culture. "Avoiding the traps identified in this research will guide banks in implementing a leading-edge Strategic Performance Management approach to keep them at the forefront of an increasingly competitive sector," said Richard Stark, director of Performance Management Solutions at Actuate. "Put Performance Management squarely in the context of the future of your business by measuring reputation, talent and customer relationships - use the results to improve behavior right across the organization and the results can be extremely powerful." To download the Cranfield report titled 'Managing Strategic Performance in Banks and Financial Services Firms; From Going through the Motions to Best Practice' please visit http://www.actuate.com/info/performance-mgmt-cranfield.asp. Source: Actuate Corp.

Toronto, Ontario - Pink Elephant, provider of IT management best practices, plans to launch ISO/IEC 20000 Essentials, a new course that will help organizations understand the benefits of adopting a quality approach to IT, as defined by the first global standard for IT Service Management, ISO/IEC 20000. Published by the International Organization for Standardization (ISO) in 2005, ISO/IEC 20000 is directly linked to the IT Infrastructure Library (ITIL), the best practices framework that focuses on aligning IT with the business, resulting in greater productivity and reduced costs. Despite the many strategic advantages, implementing ITIL has also been met with several challenges; primarily, gaining both management and staff support for a process improvement project. "By demonstrating a commitment to quality IT service provision, organizations can gain a competitive edge through ISO/IEC 20000 registration. We're seeing more RFPs that include this standard as a prerequisite," says Pink Elephant president David Ratcliffe. "ISO/IEC 20000 also plays an important role in preparing organizations for audits. With these two benefits alone, the executive team and IT staff can make a clearer connection between ITIL and how it addresses actual business pressures and concerns." The new ISO standard also allows the organization at large to receive recognition for following ITIL best practices, whereas before only individual ITIL certification existed; therefore, ISO/IEC 20000 represents a level of excellence that can be felt across all departments and is not limited to IT or its ITIL-certified practitioners. Pink Elephant's ISO/IEC 20000 Essentials is aimed at: * IT department staff of an organization that is considering or is already ISO/IEC20000 certified, so as to understand the breadth, depth and integration between the processes; * Contracts managers looking to construct RFPs to include ISO/IEC20000; the course will help explain what is involved in the standard; * Senior IT Managers, who will understand the importance of adopting a quality approach to Service Management and understand the value of ISO/IEC20000 accreditation; * Anyone involved in service provision; this course will show how ISO/IEC20000 will enable you to transform the service provision using best practice from ITIL and ISO9000. More information about course dates and locations, and in-house deliveries, will be available soon. Please visit www.pinkelephant.com for the latest updates or call 1-888-273-7465. For more information about ISO/IEC 20000, please visit www.iso.org. Source: Pink Elephant

Schaumburg, Ill. - Zurich announced the debut of eZ Transition, an online tool that bolsters the effectiveness of Zurich's return to work (RTW) program and supports a wide range of employers' RTW practices. According to a company statement, employers can use eZ Transition to generate customized RTW policies and procedures, create job description profiles with physical job demands, develop temporary transitional work assignments, develop RTW implementation and training materials, and access Americans With Disabilities Act information and state-specific Family and Medical Leave Act data. "Effective RTW programs like Zurich's can save 10-40% of workers' compensation medical costs and 14-25% of wage replacement costs," said John Kelm, President, Zurich Corporate Customer, North America. "With disability costs projected to increase 37% this decade due to the growing number of workers aged 45 to 64, an effective RTW program and tools like eZ Transition are now more important than ever to a company's bottom line. " The tool's design reflects the input from Zurich specialists in many facets of its operations, including claims, managed care, risk engineering and underwriting. It enables the creation of a customer-specific RTW profile and the implementation of preventative loss controls that will help reduce lost workday cases. The eZ Transition tool is available 24 hours a day, seven days a week to Zurich's workers' compensation customers through www.zurichna.com. Armand Fernandez, Risk Engineering Field Operations executive for Zurich, added that eZ Transition is flexible enough to adapt to employers of all sizes and program complexity, and complements Zurich's Absence Management consulting services. "Smaller employers are often unprepared for workers' compensation claims and even larger employers, with established RTW programs, frequently need assistance with physical job demands and transitional work assignments," Fernandez said. "Zurich's overall RTW program adapts to employers of all sizes, and provides the tools and directions they need to develop a comprehensive RTW solution for their specific needs, helping return their operations to normal as soon as possible." Source: Zurich, Schaumburg, Ill.

New York - The National Association of Insurance Commissioners (NAIC) launched a comprehensive public education program yesterday to assist small businesses with information about business risks and insurance options. Under the banner of "Insure U for Small Business," the campaign includes an online education site, public service announcements in English and Spanish, and community outreach by public information officers of state insurance departments. The Insure U for Small Business curriculum, which is available at www.InsureUonline.org/smallbusiness, includes six categories of vital information to small businesses: workers' compensation; group health and disability; business property and liability; commercial auto; group life and key person life; and home-based business insurance. After reviewing the curriculum's helpful explanations, tips and considerations, small business owners and managers can test their knowledge about insurance issues by taking an online quiz. Upon successful completion, they can download an Insure U for Small Business diploma. "Small businesses are a major engine for our national economy, employing millions of Americans and generating immense economic activity," said Walter Bell, NAIC President and Commissioner of the Alabama Department of Insurance. "Small business owners need to understand the array of business risks they face, as well as how to protect themselves with the right insurance coverage. Insure U for Small Business - supported by state insurance departments across the U.S. - will help small business owners and managers make smarter insurance decisions." Research conducted by the NAIC in March revealed that many small businesses - defined as those with fewer than 100 employees - are exposed to serious risks that could be mitigated by a better understanding of insurance options, according to Catherine Weatherford, NAIC Executive Vice President and CEO. Key findings of the research show: * Only 47% of small businesses offer heath insurance to their employees. Of those, 24% report changing the fee structure, deductibles or other components in the past year to offset the rising cost of premiums. - * Only 59% of small businesses with fewer than 20 employees have workers' compensation insurance, which state law requires for most companies. Workers' compensation insurance protects business owners from claims by employees who experience a work-related injury or illness. * Only 35% of small businesses have business interruption insurance, which covers expenses like payroll and utility bills that often continue after a major event (e.g., a fire or storm) shuts down a company. Because rebounding from a disaster can take a considerable amount of time, small businesses need to understand this risk and the available insurance options. * Only 48% of small businesses carry commercial auto insurance. The others apparently rely on personal auto insurance. However, personal auto insurance policies typically have lower liability limits and may even exclude business-related liability. * While 71% of small businesses say they are very dependent on one or two key people for their success and viability, only 22% have Key Person life insurance, a type of policy that enables a business to weather the death of a key employee or buy out the key person's heirs if ownership rights are involved. * Among home-based businesses - 22% of the NAIC survey - 48% depend on their homeowners insurance to protect their businesses. However, most homeowners insurance policies severely limit coverage of business property and may totally exclude business-related liability claims. "Insure U for Small Business represents a major commitment by the NAIC and its members - the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories - to help small business owners," Weatherford said. "It builds on the momentum of the NAIC's Insure U consumer education program introduced a year ago." The U.S. Treasury's Financial Literacy and Education Commission has embraced Insure U and made the program part of its National Financial Education Network. In addition to launching Insure U for Small Business, the NAIC is expanding its efforts to help insurance consumers avoid being taken advantage of by insurance scams. Fighting fake insurance is the focus of newly updated English- and Spanish-language television public service announcements (PSAs) encouraging individuals to call their state insurance department prior to purchasing an insurance policy to confirm that they are dealing with a company or agent authorized to do business in their state. Individuals may also call the NAIC's toll-free telephone number to find consumer representatives in their home state insurance departments. The number is 866-470-NAIC (6242). For more information about insurance, consumers can visit www.InsureUonline.org or, for the Spanish-language version, www.InsureUonline.org/espanol. Source: PRNewswire

Chicago - Multinational corporations are facing increasingly diverse, complex and exotic risks, and may not have all the resources in place to manage them effectively, according to a global risk management survey conducted by Aon, a Chicago provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. More than half of the survey's respondents said they weren't prepared for the risk they rated as most worrisome -- damage to reputation. "Executives now see reputation as a major source of competitive advantage," said Ruth Joplin, Aon Global Risk Consulting managing director. "While intangible, reputation is one of the most important corporate assets and one of the hardest to protect," she added. "The lack of preparedness reported for this and other key risks is both surprising and somewhat worrying." Joplin says it should come as no surprise that business interruption was cited as the second key risk. "Preserving earnings power is clearly one of the top priorities of senior management," she said, "and there is a growing realization that the resulting loss of income following an event could pose a greater threat than the physical damage itself. While 70% of respondents reported being prepared, it is perhaps even more telling that 30% are not." Survey responses suggest that third party liability risk concerns have arisen as a result of the encroachment of U.S.-style litigiousness into other geographies. "The 'compensation culture' is gaining a stronger global foothold," Joplin said. Rounding out the top five risk concerns, based on the survey's results, is distribution or supply chain failure, and market environment. Lack of preparedness for these risks is reported at 37% and 65%, respectively. What does this mean? "There is clearly more work to be done," said Joplin. "Dealing with these and future risk trends will require innovative, forward-looking solutions." Other top ten risk concerns rated by survey respondents are, in order, regulatory changes, failure to attract or retain staff, financial risk, physical damage and mergers and acquisitions and disaster recovery plan failure are tied for tenth place. Ranking Risk/description 1 - Damage to reputation 2 - Business interruption 3 - Third party liability 4 - Distribution or supply chain failure 5 - Market environment 6 - Regulatory/legislative changes 7 - Failure to attract or retain staff 8 - Market risk (financial) 9 - Physical damage 10 - Merger/acquisition/restructing 11 - Failure of disaster recovery plan Joplin says that that Americas is the only region where technology failure and loss of data are cited as a major risk concern, while Europe uniquely cites mergers/acquisitions/restructuring and Asia/Pacific is highly concerned with weather/natural disasters. Risk managers in the Americas tend to rely heavily on senior management intuition and experience to identify major risks as compared to other regions that rely more on business unit registers. The survey also indicates that corporate boards recognize the criticality of risk management and are engaged in the review of risk issues. Respondents reported identifying and understanding their risks is a top priority and many planned to take a more enterprise-wide approach to risk within the next two years. "By taking a more integrated, systematic approach to managing risk," Joplin said, "organizations can begin to actively start turning risk into opportunity." Aon's Global Risk Management Survey 2007 was conducted in late 2006 and early 2007 by Aon Global Risk Consulting, and is based on responses from 320 organizations in 29 countries. The Web-based survey, aimed at risk managers, CFOs, treasurers and others responsible for risk, addressed both qualitative and quantitative risk issues. Insight is provided by region, revenue and industry. Source: AON Corp.

Washington - Two Washington-based groups are pushing a set of common principles to Congress as it prepares to take up legislation that would renew the federal backstop for terrorism risk insurance. The Coalition to Insure Against Terrorism (CIAT), and the American Insurance Association (AIA), are passing their message to The House Financial Services Subcommittee on Capital Markets, Insurance and Government-Sponsored Enterprises chaired by Rep. Paul Kanjorski (D-Pa.), who will hold a hearing on this issue tomorrow (April 24). A critical issue that must be resolved by the new legislation, according to CIAT and AIA, is the separate treatment for nuclear, biological, chemical and radiological (NBCR) attacks, which would recognize the unique characteristics of these events. Reports issued last year by the U.S. Government Accountability Office and the President's Working Group on Financial Markets confirmed that the private market has not provided coverage for NBCR attacks outside of workers' compensation lines. Insurers are required by state law to provide the coverage for workers' compensation. To address this issue, AIA and CIAT agree that the new legislation should contain a mandatory "make-available" provision that would require insurers to follow the standard workers' compensation model. The organizations' joint principles stress that the make-available provision must be accompanied by a clear acknowledgement that the federal government is responsible for NBCR terrorism losses above primary insurers' individual NBCR retention levels. Additionally, TRIEA's insurer co-pay requirement for NBCR would be eliminated. "Importantly, the CIAT/AIA joint principles call for the new legislation to be permanent, for the distinction between foreign and domestic acts of terrorism to be eliminated and to recognize the extreme nature of NBCR attacks through a lower deductible and certainty with respect to the role of private insurers in managing NBCR terrorism risk," said Marc Racicot, AIA's President. "These principles represent a set of parameters that we believe should be considered as part of any TRIEA extension bill." Martin DePoy, coordinator of CIAT's steering committee, notes that the organizations are gratified by the broad-based, bi-partisan support Congress has shown for continuing the terrorism reinsurance backstop, but says policyholders and insurers alike believe that new legislation should address some important issues that were not fully resolved by the Terrorism Risk Insurance Act and its extension. "We believe the new program should end only when Congress determines terrorism no longer is a significant threat," said DePoy. For more information, visit http://www.insureagainstterrorism.org Source: American Insurance Association

Pearl River, N.Y. - China Life Insurance Co. Ltd. became the first Chinese domestic insurance company to join the Association for Cooperative Operations Research and Development (ACORD) as a member.ACORD members participate directly with their peers and partners in the standards process regarding development, maintenance and management of ACORD standards. Members participate in working groups and committees, which manage and develop, and then vote on new standards specifications and maintenance requests to support both international and local business requirements.

Charlottesville, Va. - SNL Financial LC, a Charlottesville, Va.-based business intelligence provider, reached an agreement with the National Association of Insurance Commissioners (NAIC), Kansas City, Mo., to acquire and publish statutory insurance data through SNL's database products.Statutory insurance data consists of detailed financial and operating data filed quarterly for more than 5,000 public and private insurance companies, including: line-of-business results, market share and geographic exposure, relevant calculated ratios, investment portfolio statistics, loss triangles, reinsurance relationships and more.

Indianapolis and Washington - During the past few months, legislation has been introduced in the U.S. Congress to repeal or alter the existing limited antitrust exemptions afforded under the McCarran-Ferguson Act.Many associations and organizations have publicly opposed the repeal. Among those are the National Association of Mutual Insurance Companies (NAMIC) and the Independent Insurance Agents & Brokers of America (IIABA).

Stamford, Conn. - Public and private companies—more than 66% of respondents—have received a record number of inquiries from potential board members who are concerned about their current directors and officers (D&O) liability insurance, an increase of 16% from 2005, according to the D&O Liability 2006 Survey on Insurance Purchasing and Claims Trends conducted by Towers Perrin. Nonprofit respondents received similar D&O inquiries from approximately 32% of their boards, up slightly (3%) from 2005.At the same time, the survey, which included 2,875 participants, shows that companies are responding to these inquiries by providing broader personal liability protection for directors and officers. In fact, 14% of those surveyed purchased Side A-only coverage in the past year. Side-A coverage provides D&O coverage for personal liability when they are not indemnified by the organization.

Hartford, Conn. - With the recent sale of a small business policy to Creative Music Adventures of Seattle, Wash., The Hartford Financial Services Group Inc. now maintains one million small-business policies in force across the country."This is an outstanding achievement for The Hartford," says Jim Ruel, senior vice president of small business insurance at The Hartford. "For years, we've been listening to what small business owners want, and then developing the right products and services to help our agents meet their clients' needs. Reaching this milestone in such a competitive market is a testament to our company's leadership and expertise in this field. As the number of small businesses in this country continues to increase, The Hartford will continue to find new ways to serve them."

Reston, Va. - The year 2006 represented the tipping point for using the Internet to buy auto insurance, says comScore, Inc., a Reston, Va., company that measures commerce in the digital world.

Criminals can imitate public or private Wi-Fi services to lure unsuspecting consumers and businesses into an ID theft nightmare, says TraceSecurity, a Baton Rouge, La., provider of security compliance management.

Stamford, Conn. – Insurance carriers in North America and Western Europe need to become more customer-oriented to remain competitive, according to a study by Gartner Inc., the research company based here.

Atlanta - A disk containing the personal information of 2.9 million Georgia residents has gone missing, state health officials say.

Bethesda, Md. – A self-described socially responsible mutual fund has withdrawn formal objections to the way two major insurance companies have handled climate change.

New York - New York City-based New York Life Insurance Co.’s consumer Web site was best in the nation among insurance and annuity companies in the fourth quarter of last year, according to Dalbar Inc., a Boston-based company that tracks Internet innovation.

New York - Parents can track the whereabouts of teenage drivers with the help of a global positioning system about to undergo testing by New York-based AIG Auto Insurance.

New York - Senior insurance executives are concerned about governing and managing the crushing volume of data their companies maintain these days, especially in light of stricter reporting requirements.

Edwardsville, Ill - Florists' Mutual Insurance Company (Hortica) has announced the loss of a locked shipping case containing backup computer tapes with personal information.

Denver - Despite some challenges, the health insurance industry continues to focus forward on initiatives that will enable patient-related data sharing in order to help eliminate errors and reduce overall costs. Anthem Blue Cross and Blue Shield in Colorado announced its participation in a voluntary data-sharing program developed by the Council for Affordable Quality Healthcare (CAQH), the company reports. The program, based on rules drafted by CAQH's Committee on Operating Rules for Information Exchange (CORE), is designed to link the data collected by health plans, providers, and vendors so that doctors can electronically verify their patients' insurance information in twenty seconds or less, significantly improving communications between providers and insurers. A report issued in February 2006 by Dublin, Ireland-based Research and Markets notes that insurers will benefit from a trend in widespread adoption of electronic capture of patient data. With solid benefits predicted, there still remain challenges, however. Alluding to the routine capture of documents and data for both regulatory and business intelligence purposes, the Research and Markets holds that "health care in the clinical setting has resisted this industry-transforming technology for nearly 20 years. The reasons: the lack of user-friendly interfaces for busy health care providers, lack of workflow understanding on the part of vendors, the expense and complexity of implementation and maintenance solutions, and the lack of transparent ROI for providers." Empirical data on long-term benefits for a program such as this may not be available yet, but carriers such as anthem BCBS nevertheless have high hopes for initiatives designed to create incentives for providers that will help improve communications between parties and create a "healthier" patient base in the process. The fact that the CORE program is a voluntary, industry-wide collaboration facilitated by Washington-based CAQH, may help the cause. Anthem has been certified as a CAQH CORE health plan and has already completed the Phase I implementation of the CORE rules, which allows for standardized data transfer and quicker response times. Physicians who link to the health plan through electronic data interchange (EDI) will be able to use EDI for this quick verification. EDI is a method for two organizations to confidentially exchange data from one computer to another using standard formats that are HIPAA compliant. Currently, Anthem's EDI is used for claims filing, claims status checks, eligibility verification, electronic remittance advices, and electronic fund transfers back to health care providers. "Anthem is committed to employing the most advanced information technology solutions available to improve both our members' experience and their interactions with physicians," said John Martie, president, Anthem Blue Cross and Blue Shield in Colorado, a subsidiary of WellPoint, Inc. "CAQH has developed an excellent framework for simplifying the administrative side of the health care system, and Anthem has worked diligently to ensure that we are capable of bringing the benefits of CAQH's efforts to our members." "These programs have the potential to transform the way that health care providers and health plans communicate," continued Martie. "But most importantly, they will take much of the confusion out of the health care system for our members." Sources: Anthem Blue Cross and Blue Shield, INN Archives