Cover StoryFighting Fraud


Carriers are waging an endless battle against fraud. But thedevelopment of technology that improves the speed and accuracy ofidentifying suspicious claims gives carriers a fighting chance to overcomewhat experts believe is a $100 billion problem.


Internet Risk


In the e-commerce economy, businesses face new risks that includetrademark infringement, attacks from killer computer virus and loss ofincome when servers are

offline. Insurance companies have responded by offering policies thatcover e-commerce risks.

Benchmarking IT


Benchmarking is an important tool that accountants use to gauge acompany's financial performance. Some insurers are now incorporating theirinvestments in technology to better understand their total return onequity.



Letter 4

Newsline 8

With its purchase of Pivot, First Union targets online insurance;Small-business market gains another online entrant; InsWeb's investorsawait positive results from its

ongoing restructuring.

Insurance IT Stock Chart 18


Focus 20

As senior vice president and CIO of Zurich Kemper, Russell Bostickunderstands the importance of

ensuring that technology is a key component of the company's

business strategy.


Commerce 26

Allstate Insurance Co. is in the midst of a $1 billion, multichannel

initiative that's transforming how the company interacts with its

policyholders. The company plans to expand its Allstate Direct programto 16 states by the end of the year.


Focus 55

Artificial intelligence largely has been ignored by insurers. However,as the technology progresses, it's being incorporated into applicationsthat support underwriting, data mining and fraud detection.


Update 62

Online Poll 64

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