Digital Platforms

Chicago - Stating that 50 individual sets of individual insurance regulations results in a lack of transparency and a bottleneck to global trade, Frank Keating, president and CEO of the American Council of Life Insurers, called for an optional federal charter yesterday during his address to the International Insurance Society here.

Hartford, Conn. - The Hartford Financial Services Group Inc.'s online Quote-to-Issue (QTI) system for rating, quoting and issuing comes in handy with its enhanced Dimensions auto insurance program, which will now be offered as Dimensions with Auto Packages. The Hartford expects online users to get and compare quotes for these packages to be faster and easier than before."We understand the demands on agents and the need for their staff to process business fast and efficiently," says Mike Concannon, senior vice president of personal lines for the Hartford, Conn.-based insurer. "Our QTI technology makes it easy for them to work with The Hartford."

Chicago - Attendees at the International Insurance Society 42nd Annual Seminar in Chicago identified natural catastrophes--over pandemics, geopolitical instabilities, terrorism and man-made catastrophes--as the biggest threat to the future of the insurance industry.The question was posed to the more-than-100 attendees of the July 19, 2006 CEO Panel V: Catastrophic Risk and Insurability: Can the industry cope? Edward Liddy, chairman and CEO of Northbrook, Ill.-based Allstate USA and Pierre Ozendo, head of Americas Property & Casualty, Swiss Reinsurance America Corp. USA, Armonk, N.Y., spoke to the attendees on the subject.

Newark, N.J. - Chronically ill Horizon Blue Cross Blue Shield of New Jersey members and emergency room physicians can now access health histories and records, along with other important information, with a quick scan. The Newark, N.J.-based insurer announced a two-year collaboration with Hackensack, N.J.-based Hackensack University Medical Center, its physicians and the VeriChip Corp., Delray Beach, Fla., to implant FDA-approved microchips in chronically ill patients enabling emergency room physicians to access those patients' medical record electronically. The microchips provide immediate access to family contact information and information about the patients' medical histories.Horizon BCBSNJ will make the new technology, developed by VeriChip, available to select members with chronic conditions. Those members who participate in the program will agree to have an implantable radio frequency identification device (RFID), the size of a grain of rice, placed under their skin.

Chicago - The Windy City will host more than 500 attendees from 55 nations this weekend at the International Insurance Society's 42nd annual seminar.

Needham, Mass. - Recent trends and statistics on how we live, communicate, and work today point to significant changes poised to reshape how U.S. insurance carriers respond in areas such as products, services, and the use of technology. TowerGroup believes that over the next few years, the leading insurance companies will embrace these changes and use their scale, financial strength, and flexibility to maintain a sustainable advantage.

Washington, D.C. - In the first of in a series of government meetings on modernizing insurance regulation, the focus on whether insurers should be given the option of being federally regulated took center stage this week at a U.S. Senate Committee On Banking, Housing, and Urban Affairs hearing on "Insurance Regulation Reform."

Hartford, Conn. - Though Citigroup's recent sale of Travelers Life & Annuity to MetLife may appear to indicate that the "financial supermarket" idea of full-scale mergers is an untenable working model, banks and insurers continue to find ways to integrate their services, according to a new study by Conning Research and Consulting, Inc., Hartford, Conn.

New York and Dayton, Ohio - The competitive online marketplace is being bolstered by two more companies planning to offer consumes an online insurance shopping experience.

Springfield, Mass. - MassMutual Financial Group today unveiled a new addition to its Web site designed to focus on the financial needs of women, enabling them to educate and empower themselves to help build a more secure financial future.

Minneapolis - Allianz Life Insurance Company of North America will integrate detailed insurance data with investment information for USAllianz Securities, a broker dealer subsidiary of Allianz Life. The agreement represents the first time any practice management system will integrate comprehensive financial and insurance information, according to Investigo Corp., the practice management provider that is providing the solution.Investigo CEO Tom Rozman cites results of an investment industry survey that his firm conducted last fall. "Broker dealers are starving for information and must have a way to track the sales of insurance products through their firm."

Oak Park, Ill. - Home page usability of many insurance companies isn't up to snuff. That's according to a study by Vox Inc., a firm focused on increasing retention and referalls by improving the customer experience. The study analyzed the positioning of key customer and user elements, such as insurance quote and "find an agent" functions. Each company was given a rating based on a set of usability and benchmark criteria.One exception to the overall findings is 21st Century, which recently redesigned its home page to improve the positioning and clarity of the various user elements.

Jersey City, N.J. - Catastrophic wildfires cause extensive damage to property and significant disruption to the lives of property owners. In 2005, more than 8.5 million acres burned, nearly twice the 10-year average. This is according to ISO, a provider of products and services that help insurers measure, manage and reduce risk.With more people living closer to brushfire areas, which also happen to be preserves of privacy, the exposure has nearly doubled for insurers between 1970 and 2000.

Washington, D.C. - NASD has introduced a new series of free, on-demand video Webcasts for compliance professionals that's aimed at taking the mystery out of key regulatory processes and making firms' interactions with NASD more productive and efficient.The first installment of the new "What to Expect" series focuses on what firms can expect before, during and after an NASD examination and offers practical tips for making the process go smoothly. While all NASD-registered firms can benefit from viewing this Webcast, "What to Expect: Preparing for an NASD Routine Exam" will be of particular interest to firms on a four-year examination cycle whose examinations are coming up, given significant changes in the regulatory environment in recent years.

Mexico City - When ING Mexico, a provider of insurance, pension benefits and financial services in Mexico, needed a way to enhance customer service by connecting customers to the right agent and at the right time, the company selected an intelligent communications solution from Avaya, a provider of business communications applications, systems and services.With branches located throughout Mexico, ING needed to centralize its customer care operations in order to improve efficiency and customer service. The company established a contact center in Mexico City with 305 employees and 229 agent positions that attend to an average of 220,000 calls each month. Car accident reports, health and life insurance inquiries, pension information and tele-sales are some of the services provided via the contact center in addition to services for ING employees such as IT and HR support.

Cary, N.C. - Reaping business benefits now matches regulatory compliance as the key driver of enterprise risk management (ERM) systems according to a global survey of 339 financial services executives. These benefits include improved performance management, better risk-based pricing, and reduced capital allocation and credit loss. These are the results of research conducted by SAS, a business intelligence provider.A full 83% of participating financial institutions view ERM as a strategic priority, per the survey. Many are setting up new ERM or "integrated compliance" programs. The survey also found that credit risk management is still the top risk management expenditure priority for most firms. In addition, 78% of respondents view credit risk management as critical and anticipate significant, quantifiable economic rewards over the next 24 months, including a 10% reduction in economic capital and a 14% reduction in cost-of-credit losses.

Beverlyy, Mass. - Electric Insurance Co. has named Marc A. Meiches, 53, president and chief executive officer. Meiches succeeds Larry Cohen who has been acting CEO since April 2005.Meiches comes to Electric Insurance from GE Insurance Solutions (GEIS) where he was the executive vice president and CFO. He joined GEIS in 2000 with more than 20 years of financial experience in creating and leading global organizations. GEIS, with more than $10 billion in premium and $50 billion in combined assets, employed 2,500 people in 50 states and 22 countries. The company was recently sold to Swiss Re.

Worcester, Mass. - The Hanover Insurance Group Inc., a regional property and casualty company has introduced a business owner's policy (BOP) class comparison look-up tool. The tool is designed to help The Hanover's agent partners quickly and efficiently categorize a small business owner's industry classification and obtain a quote for the company's Avenues BOP faster than ever."The new BOP class comparison look-up tool will simplify the quoting process for our agent partners, saving them precious time and helping them achieve even greater productivity," says Marita Zuraitis, president of The Hanover's property and casualty companies. "This tool is yet another example of our commitment to continuous improvement and to deliver on our promise to provide world class products and services, while doing whatever it takes to make it easy for agents to successfully conduct business with us."

To many insurance industry executives, compliance means spending gobs of money to avoid having their companies go public with ugly security lapses or pay fines from regulators, or avoid having themselves hauled off to the slammer for misstating information. However, the process of meeting compliance mandates need not be costly-and may actually help increase profits in the long run.For many carriers, there are ways to establish a common base of processes to address multiple mandates, as well as any future requirements. In addition, compliance management can bring new opportunities for gaining better efficiencies and supporting new business growth.

Do drivers who wear turtlenecks get in more accidents than drivers who don't? What if the theory proved true? Although it would be nice to find out whether this level of minutia affects accurate pricing of risk, when it comes to ratings, this question is not one insurers are asking-yet. But insurers are finding unique ways to price risk-from aggressive braking patterns to career choice. Progressive is one such insurer taking steps toward accuracy, and it's using technology to do so. Most recently, Mayfield Village, Ohio-based Progressive Direct Insurance Co. launched an odometer-reporting, Web-based pilot program in Iowa and Virginia. And, in the summer of 2004, the carrier began piloting a usage-based program in Minnesota called TripSense.Using a device called a TripSensor, which plugs into the ODBII port in newer vehicles, Progressive is collecting driver data in the hopes of creating a win-win for its underwriters and its policyholders.

AGENCY WEB PORTALNew York-based P&C Insurance Systems Inc. introduced a Web portal that allows direct Web-based upload of ACORD data from agency management software. The portal leverages the architecture of the PCIS management system to provide Web-based multi-line rating, real-time agency access to quote documents, and up-to-date agency production reports.

DESPITE DEADLINE, MANY FIRMS LACK AML PROGRAM

Insurance Networking News recently interviewed Marcus Ryu, vice president of consulting services, at Guidewire Software Inc., a San Mateo, Calif.-based firm that provides software to the P&C and workers' compensation industries. Ryu plays a central role in developing and implementing leading solutions for the insurance industry.INN: In the white paper titled, "Achieving Underwriting Excellence with Guidewire PolicyCenter," you cite a study by McKinsey & Co. What did that study reveal?

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Yonkers, N.Y. – The August issue of Consumer Reports warns consumers that even drivers who have spotless driving records and have never had an at-fault accident may be faced with higher premiums if their insurer uses credit-based insurance scores.The report describes credit-based insurance scores as numbers that are computed from bill-paying and loan data collected by the major credit bureaus. They have become as important in determining annual premiums as driving records and neighborhoods, the magazine states.

Washington, D.C. - Insurers should offer consumers better information about consumer-driven health plans and other benefit plans, according to a report issued by the National Committee for Quality Assurance, a nonprofit organization that provides information on the quality of the nation's managed care plans. In a recently released white paper the Washington-based NCQA accredits health insurers for meeting certain standards of performance.

Decatur Ga. - The Progressive Group of Insurance Cos., broke ground for its new Service Center in Decatur, Ga. Georgia Insurance Commissioner, John W. Oxendine, was on hand for the ceremony.Scheduled to open late this year, the site will feature a 19,000 square foot service center and marks Progressive's expansion in Atlanta of its "concierge" claims service that oversees all elements of the claims and repair process on behalf of drivers involved in accidents. Progressive claims its concierge service reduces the time drivers spend on repairs from four days to about 15 minutes.

Hartford, Conn. - With fewer large books of business changing hands recently, insurance agencies are relying on staff-driven, organic growth to expand their operations. Compensation packages and new recruitment and training strategies have shifted to reflect this trend, and also to address the shortage of trained sales professionals, according to the recently-published Business Management Group, Inc.'s "2006-2007 Owner, Executive and Producer Compensation Survey."Business Management Group (BMG), a subsidiary of The Hartford Financial Services Group Inc., is an independent agency/broker consulting firm that has surveyed and published agency compensation studies since 1990. The surveys enable agencies to benchmark their compensation plans against industry norms by looking at various factors, including revenue size and region.

Alpharetta, Ga. - ChoicePoint (NYSE:CPS) is acquiring the assets of Memphis, Tenn.-based USCerts, which provides technology and data management services to facilitate the remote ordering of certified birth, death, marriage and divorce certificates. Terms of the acquisition were not disclosed.USCerts combines technology with user-friendly interfaces to provide a secure, remote vital records ordering system. The company also provides a network for processing vital record requests by telephone, facsimile or the World Wide Web.

New York and Atlanta - Assurant Inc., a provider of specialty insurance and insurance-related products and services, has received two patents for call processing systems developed within its Assurant Solutions business.These systems optimize sales and retention efforts in contact centers through a series of dynamic customer and agent analytics. Assurant Solutions is offering the systems to its clients and making them available to other entities.

New York - A core concept of asset allocation, use of proper tools and technology, is part and parcel of successful portfolio management, yet many mutual fund firms do not provide tools to help investors with this important undertaking, according to a new report issued by Corporate Insight. The New York research firm takes an in-depth look at asset allocation tools provided by eighteen mutual fund firms.

Des Moines, Iowa - The Principal Financial Group is introducing an online tool--called the Treatment Cost Advisor--designed to help members evaluate the price of specific procedures as well as medications. The tool responds to a growing need from employers who are encouraging employees to make smarter health decisions."Understanding health care costs is complicated, so we wanted to offer a way for our members to identify and compare pricing for everything from minor procedures to surgeries and hospital stays," says Carey Jury, senior vice president of the health division for the Principal Financial Group. "As consumer driven health care continues to evolve and more responsibility shifts to employees, we must provide tools and resources to help our members make informed health decisions."

Houston - Scalable Software LLC, an IT compliance and asset management solutions has launched IT Compliance Magazine, a magazine dedicated to the topic of IT compliance across all vertical industries and the public sector. IT Compliance Magazine is designed to showcase best practices and insights on revised, new and emerging regulations and standards that impact IT compliance, including:* Sarbanes-Oxley (SOX)

Worcester, Mass. - The Hanover Insurance Group Inc. is trying to make it easier and faster for independent agents to do business with the company by revamping its point-of- ale (POS) system for Avenues Commercial Auto. Using the enhanced POS system, it takes agents just minutes to fill-out five pop-up, screens and obtain a commercial auto quote for a client."We are pleased to provide agents with the latest improvements to our Commercial Auto POS system because it makes placing business with The Hanover simpler and more efficient," says Marita Zuraitis, president of The Hanover's property and casualty companies.

San Mateo, Calif. - Progressive Insurance ranked as the No. 1 site in two studies conducted by Keynote Systems Inc., an Internet performance firm. The two studies line provide a comparative examination of online customer experience and best practices implementation by leading automobile insurance Web sites.Keynote's customer experience study shows that consumers are turning away from obtaining auto insurance quotes over the phone and increasingly turning to the Web for those same quotes. This study uncovered that in the highly competitive $158 billion auto insurance industry, price competitiveness and the online quote process are the leading indicators of success in landing new customers online.

Kansas City, Mo., - Health insurance--critical to the peace of mind of most Americans--has become increasingly complex and expensive, according to The National Association of Insurance Commissioners (NAIC). A maze of options and cost considerations--from health maintenance organizations to health savings accounts--now confront consumers.To help individuals clear up the confusion and gain a better understanding of the costs of their coverage, the NAIC has assembled useful information about health insurance--all organized by life stage needs--on its new consumer education Web site called Insure U at http://www.insureuonline.org/.

Chicago - InsuranceNoodle Inc. is introducing the new AIG "WorldRisk" portfolio of international products which provides insurance protection for small U.S.-based companies that sell products or whose employees travel overseas.InsuranceNoodle is an Internet-based distributor of small business insurance. More than 2,500 active NoodleNetwork agencies across the country use the e-broker's patented proprietary, Web-based technology platform to write and service small commercial business. InsuranceNoodle's current line of commercial products includes property, general liability, package, business owners' policy (BOP), directors' and officers' liability, commercial auto, umbrella liability, workers' compensation, employment practices liability (EPLI), professional liability and surety bonds.

Jacksonville, Fla. - Blue Cross and Blue Shield of Florida is introducing what it claims is an industry first capability called CareCalc. a tool designed to help BCBSF providers and members understand the financial responsibility for a particular service prior to or at the time of an office visit."Providers of health care and their office staff want simple and effective processes so they can focus on their work instead of navigating the payment system. At the same time, our members want to be sure they are paying the right amount when they go to the doctor's office," says Elana Schrader, M.D., vice president, provider services, BCBSF. "CareCalc will not only help our members better understand their financial responsibilities, but it also will help streamline processes for those who serve them -- our physicians and providers."

Phoenix - A new tool is available for Arizona employers who seek to improve employee wellness and boost productivity in the workplace. Blue Cross Blue Shield of Arizona (BCBSAZ) has introduced My BluePrint, a virtual health advisor and health measurement tool. By inviting employees to take an interactive assessment, employers receive an overall summary of results so they can identify risk factors in four key areas--fitness, sleep, nutrition and stress management--and implement the most appropriate wellness programs."Employers who offer the My BluePrint program are becoming increasingly engaged in the health of their employees while helping to improve company performance," says Dick Hannon, senior vice president of marketing and provider affairs for BCBSAZ. "Employers have the ability to take more control over the invisible costs of health care by promoting simple steps toward healthier living."

Ipswich, Mass. - A report on online customer respect found the insurance industry scored lowest in respecting Web site visitors.That's the finding of a second quarter 2006 online customer respect study of Insurance firms conducted by The Customer Respect Group, an international research and consulting firm. The firm analyzed 52 health care, life and health, and property/casualty insurer Web sites.

Hartford, Conn. - Skyrocketing gasoline prices, the ever-changing competitive business environment, soaring health care costs--those are just a few of the high-pressure issues facing today's employers. The Hartford Financial Services Group Inc. understands that business owners often don't have the resources--or expertise--to track and analyze the health and disability trends of their employees.That's why the company provides its group disability customers with free annual analyses, tracking health, absence and productivity trends, such as frequency and type of disability claims. After the review, the insurer provides extensive reporting to update employers on trends impacting their business, as well as recommended strategies to help keep employees healthy and productive.

Philadelphia - CIGNA International Expatriate Benefits (CIEB) has introduced ePayment Plus, a new service that speeds payments for expatriates' health claims through electronic deposits to members' bank accounts. The service is available for expatriates working in the United Kingdom, Spain, Germany, France, Belgium, Canada, Portugal, Hong Kong and Singapore."This new service is designed to provide added convenience and peace of mind to our expatriate members on assignment around the world, with deposits made to our members' bank accounts in the currency of the countries where they work," says Kelley Crowley, vice president of global service operations.

Hartford, Conn. - In addition to traditional checks and electronic fund transfers, which deposit emergency funds directly into a customer's bank account, those who sustain losses from a natural or man-made disaster now have the option of receiving money for certain covered expenses with an emergency claim card from The Hartford. This can include coverage for the costs associated with smaller, but vital, day-to- day living essentials.The Hartford Emergency Claim Card is a debit card, issued by JPMorgan Chase, which can be used at ATM machines nationwide to withdraw cash or at stores that accept point-of-sale purchases. Point-of-sale purchases require a Personal Identification Number (PIN), unlike credit card purchases, which require only the card and a signature.

Hartford, Conn. - Travelers now offers new resources to assist businesses with disaster preparedness planning. Two new online tools and a new Safety Academy class, titled "Business Continuity Planning," have been added to help Travelers customers create customized disaster recovery plans that will ensure optimum business continuity in the event of exposures from natural or manmade disasters.Bob Brody, senior vice president, Travelers Risk Control, says, "Emergency planning should be at the top of every "To Do" list for today's businesses. With more than a century of experience in risk control, Travelers is uniquely positioned to help its customers anticipate and respond to a wide spectrum of exposures from catastrophic risks faced by businesses and homeowners."

Kansas City, Mo. - The National Association of Insurance Commissioners (NAIC) voted to amend its Model Regulation Requiring Annual Audited Financial Reports, commonly known as the Model Audit Rule. The amendments relate to auditor independence, corporate governance, and internal control over financial reporting.

Hartford, Conn. - Health insurance provider Aetna is enhancing its health transparency initiatives to help consumers make more informed health care decisions based on the actual costs of care and the clinical quality and efficiency of physicians. Effective August 18, Aetna will provide online access to physician-specific cost, clinical quality and efficiency information in select markets, including: Price, clinical quality and efficiency information for physicians in Connecticut; Washington, D.C.; Northern Virginia; Maryland; Cincinnati, Cleveland, Columbus, Dayton and Springfield, Ohio; Northern Kentucky; Southeast Indiana; and South Florida, including physician-specific pricing for up to 30 of the most widely accessed services by specialty and indicators based on adverse events, 30 day hospital re-admit rates, overall efficiency in use of medical services, and volume of Aetna members treated; Price information only for physicians in Kansas City, Kan. and Mo.; Las Vegas, Nev.; and Pittsburgh, Pa. With these new enhancements, clinical quality and efficiency information will be available for more than 14,800 specialist physicians and specific pricing will be available for more than 70,000 physicians.

Mayfield Village, Ohio - The Progressive Corp. has appointed John P. Sauerland as the president of the Progressive Direct Group of Insurance Cos. Mr. Sauerland, 41, who currently serves as the claims general manager for the Midwest region, first joined Progressive full time in 1991 as an assistant product manager. He served at different times as the auto product manager for various states as well as the general manager for Mississippi, Minnesota and Wisconsin.CEO and President Glenn Renwick says: "I am very excited to announce John's new role. The depth of his experience in product, pricing and Claims as well as his leadership skills make him the ideal choice for leading our Direct organization in the next phase of our quest to become consumers' #1 choice for auto insurance."

Boston-- AIR Worldwide President and CEO Karen Clark will advise members of Congress and their senior staff today that hurricanes and earthquakes have the potential to cause insured losses in excess of $150 billion and total economic losses approaching $500 billion. Clark is participating in a seminar at the U.S. Capitol Building hosted by the Congressional Research Service (CRS) titled "Insuring and Mitigating Risks of Large-Scale Disasters: Is Federal Disaster Insurance Needed?""There are many potential natural catastrophe scenarios resulting in insured property losses exceeding $100 billion," says Clark. "Examples include a Category 5 hurricane making landfall in Miami, which could result in insured losses of more than $130 billion, and a large magnitude earthquake in the Central U.S., which could result in insured losses of more than $150 billion."

Okemos, Mich. - Minnesota Department of Commerce has implemented Sircon for States, a Web-based solution from Sircon Corp., making Minnesota the 14th state to adopt the online compliance technology for producer licensing and appointment.The conversion from a legacy system to a hosted solution is aimed at increasing the online services Minnesota provides to insurance carriers, agencies and producers across the country, enabling customers to connect with the Minnesota Department of Commerce 24 hours a day, seven days a week.

San Diego - In response to agents' calls for quality educational opportunities on life settlements, Life Settlement Solutions, Inc. has launched a Web site to complement its hosting of Life Settlement Awareness Month.The new site, www.lifesettlementawarenessmonth.com, provides visitors up-to-date news regarding Life Settlement Awareness Month news and events, steps to a successful summer sales campaign and resources for agents looking to better serve their clients and increase profits.

Boston - If benefit managers are to truly control the significant cost from employees missing work, they need a single approach to managing disability and Family Medical Leave Act (FMLA) programs. That's because disability claims cause 55% of employee absences and FMLA drives another 25%, according to the JHA/EBN 2005 Absence Management Survey. The survey also uncovered the high cost of employees being away from work: an employer pays $260.00, on average, each day someone misses work.To give benefit managers the single solution needed to better control those costs, Liberty Mutual recently enhanced a key claims management system. Liberty SystemOne.nxt now offers benefit managers one source for managing both disability claims and FMLA time, simplifying the complex compliance maze and making it easier to strengthen these programs.

Calabasas, Calif. –Myron Hendry has joined Countrywide Insurance Group as executive vice president and chief operations officer. In this role, Hendry is responsible for overseeing central operations, claims and information technology as the organization expands its personal lines and commercial brokerage insurance business and grows its leading positions in various lender-placed insurance business segments.