Subject Root Tag

San Francisco - InsureWorx Inc., a provider of modular software solutions to the insurance industry and the workers' compensation carrier market, has launched its new Web site, located at www.insureworx.com. The site introduces the look and feel of the newly formed InsureWorx organization which resulted from the January 2005 acquisition of Taliant Software by WorldGroup.The new InsureWorx Web site includes information about the company's PowerComp products, the company, and the insurance software market. Of particular interest to existing InsureWorx customers is the client services area. These pages are designed to become a primary source for customer information and communications/

Kansas City, Mo. - The National Association of Insurance Commissioners (NAIC) met last week to discuss steps to amend disclosure requirements for insurers that utilize reinsurance with limited risk transfer features, also known as finite reinsurance.

Kirkland, Wash. - The National Association of Insurance Commissioners (NAIC) has selected Ubmatrix, a Kirkland, Wash., supplier of software and services, to provide technical support and training in the development of an XBRL demonstration project for use with NAIC's insurance statutory financial reporting data.

Hartford, Conn. - Aetna has entered into an agreement to acquire ActiveHealth Management, a New York-based health management and health care data analytics company. Aetna will acquire privately held ActiveHealth for approximately $400 million and expects to finance the transaction from available cash. The transaction is subject to customary closing conditions and federal Hart-Scott-Rodino anti-trust regulatory approval. Aetna expects to close the transaction during the [second] quarter of 2005 and that it will become accretive to earnings within 12 months following the closing. Aetna places strong emphasis on medical management," says John W. Rowe, M.D., Aetna chairman and CEO, "and ActiveHealth's ability to provide practical, timely, clinical decision support to physicians and members can improve patient safety and medical quality and reduce medical costs." Aetna has been a customer of ActiveHealth since 2002, and has private-labeled the CareEngine-powered services it uses under the name MedQuery. Other health plans also have placed the services they purchase from ActiveHealth under private labels.Source: Aetna

Cleveland - The Compliance Consortium, an international membership organization formed in June 2004 to promote effective governance, risk and compliance management (GRC), has published its operational approach for managing GRC requirements within the enterprise. Applicable to both public and private companies, the framework is designed to assist senior management and boards of directors in setting objectives for managing a wide range of compliance-related activities and instituting the programs needed to attain those objectives. This initial version is a "public draft" and is intended to invite constructive criticism and ultimately to build a broad consensus within the hundreds of companies that have registered as part of The Compliance Consortium community over the past year. Leveraging the guidelines set forth by the U.S. Sentencing Commission, the Consortium has defined seven operational concerns to serve as a framework for organizing and managing GRC operations. These range from clearly assigning responsibilities at all levels of the organization to establishing incentives and discipline to promote compliance The Consortium has developed a list of 12 questions that board members and senior management should ask to help ensure organizations are on track with their GRC objectives."Unquestionably, the passage of the Sarbanes-Oxley Act has increased the focus for public companies on the areas of corporate governance, risk management and compliance," says Ted Frank, chairman of the Compliance Consortium advisory committee and president of Axentis. "It's important to remember that, for many companies, Sarbanes-Oxley is just one of hundreds of mandates from the SEC, FDA and other regulatory bodies that they must manage. Our goal with the creation of this framework is to help all organizations define, execute and ultimately profit from low risk and efficient governance, risk and compliance management, regardless of the specific regulation or statute."

Sarasota, Fla.- Kirk A. Sexton will take the reins as chief information officer of Unisource Administrators Inc., a workers' compensation third-party administrator that provides workers' compensation products, claim management, managed care and payroll services, to more than 15,000 employers in the southeastern United States.

Kansas City, Mo. - The National Association of Insurance Commissioners (NAIC) is taking steps to amend disclosure requirements for insurers that use reinsurance with limited risk transfer features, also known as finite reinsurance. The use of so-called finite reinsurance has received considerable attention over the past several months, because of its misuse by some high-profile insurers. State insurance regulators, working in a coordinated fashion through the NAIC, have been evaluating existing relevant statutory financial reporting since last fall. The latest proposed disclosures would require an insurer to report to state insurance regulators any agreement that has the effect of altering policyholders' surplus by more than 3%, or representing more than 3% of premium or losses. The new disclosure is also designed to identify any reinsurance contract that has been accounted for differently under statutory accounting principles compared to general financial statement purposes. Additional reporting requirements regarding contract terms and management's intention in entering the contract have been included to improve transparency. The provisions include that there are no separate agreements between the insurer and the reinsurer that could serve to modify the actual or potential losses under the contract, and that the insurer complies with all requirements of NAIC's statement of statutory accounting principle (SSAP) No. 62, "Property and Casualty Reinsurance."Source: NAIC

Peoria, Ill.- RLI, a property and casualty carrier and provider of surety bonds to niche or underserved markets, established a strategic information services department to manage and develop RLI's strategic and management information services. The newly formed department's goal will be to create accurate and consistent information that can be efficiently delivered to RLI managers and executives to enable them to react to potential problems and opportunities.The new business unit "will be essential in managing our growth and achieving greater profitability," says RLI President & COO Michael J. Stone.

Fireman's Fund Insurance Co. Novato, Calif., has taken a third major step in its total IT transformation by awarding IBM a ten-year $94 million contract to modernize a major portion of the property/casualty insurer's application, development and maintenance software into an On Demand infrastructure that could reduce the number of major applications by 70 percent while improving customer service. When completed, the work could save Fireman's Fund $200 million, more than double the project's actual cost.With IBM's assistance, Fireman's Fund will shift its IT operations to an Internet-based computing model known as a "service-oriented architecture" (SOA) that enables consolidation of costly, redundant applications. Under Fireman's Fund direction, IBM will sift through mission-critical applications using a unique IBM Business Consulting process called Component Business Modeling to determine which applications deliver the most value to the business and which processes can be refined, consolidated or eliminated.

Nashville, Tenn.- HealthLeaders-InterStudy, a provider of managed care industry intelligence, finds that CIGNA HealthCare has turned a corner in North Carolina. According to the latest issue of the North & South Carolina Health Plan Analysis, the national insurer's North Carolina HMO license tripled its net income in 2004 yet decreased premium revenues by 21%. It was the most dramatic turnaround among North Carolina's HMOs. CIGNA's HMO posted 2004 net income of $18.7 million on revenues of $277.5 million, says Jane DuBose, HealthLeaders-InterStudy analyst. "That's a 6.8% profit margin." All of the state's HMOs were in the black in 2004, although UnitedHealthcare and Aetna Inc., two other national insurers, had lower net income than in 2003, DuBose says.Source: Decision Resources Inc.

The Lawson Firm, a Cleveland-based law firm providing legal services to the insurance industry, is offering a two-part paper examining the business and legal risks associated with business-process outsourcing (BPO) and the strategies used to manage those risks. The paper is in response to recent studies showing that roughly half of all insurers currently outsource one or more business processes, or are planning to do so within the next 18 months.

COLUMBUS, Ohio--Nationwide Financial Services, Inc., a leading provider of long-term savings and retirement products, today reported first quarter 2005 net income of $160.5 million, or $1.05 per diluted share, compared with first quarter 2004 net income of $119.6 million, or $0.78 per diluted share.

Insurance revenue reported to the Federal Reserve by the nation's bank holding companies grew by $7.3 billion in 2004 to $40.8 billion, 22% higher than 2003, according to an analysis by the American Bankers Insurance Association (ABIA), Washington, D.C.

The National Association of Insurance Commissioners (NAIC) May 2 launched pilot project with five states to store electronic fingerprints of licensed insurance producers.

Quincy, Mass.--eStudentInsurance.com, a service of the Edvisors Network announced this month a new partnership with Worldwide Insurance Services. The Edvisors Network, a multi-national education services company, teamed up with Worldwide Insurance Services, a global leader in travel insurance, to create a new insurance policy for students traveling anywhere in the world. Global Student Health plans from eStudentInsurance.com are designed specifically to benefit international and domestic students by offering optimal affordable coverage, anywhere in the world.

Moncton, N.B. Canada--Whitehill Technologies Inc., a provider of document composition and data transformation software, has acquired the technology assets of Metaserver Inc. With this deal, Whitehill now owns the patented technology platform behind Metaserver's suite of business process integration (BPI) software and solutions for the insurance industry.

As director of MetLife Auto & Home's special investigations unit, John Sargent knows that eliminating fraud is an unachievable goal. But that hasn't stopped his company or other industry leaders from trying."Our goal is to pay what we owe, and not a penny more or a penny less," Sargent says. "The more efficient we are at identifying and preventing fraud, the better we can be at writing business at a more competitive rate."

In some ways, insurers' fraud-fighting efforts are similar to this nation's so-called war on drugs: Both endeavors require the right mix of people, technology and information to identify the criminals. Also, public awareness campaigns are part of the effort to change consumer behavior, whether it's to prevent drug use or prevent policyholders from filing bogus claims. And both involve elements of organized crime that use sophisticated tactics and technology to perpetrate their crimes.However, despite all of the resources that have been dedicated over the past decade to fighting drugs and fraud, we're no closer today to eliminating either problem. There have been many high-profile successes for each campaign, whether it's the seizure of a ton of cocaine on a ship at sea, or the combined work of insurance fraud investigators and law enforcement officials to uncover a multi-state, staged-accident fraud ring. But the fact remains that insurance fraud continues to cost the insurance industry $30 billion a year-and that's just counting fraud perpetrated against property/casualty insurers.

With industry research indicating that many individuals don't understand their annuity and life insurance needs, the responsibility falls on insurers to provide product research and needs-analysis to customers.While meeting with a financial advisor is one way to educate customers, many carriers, such as New York Life, are enhancing their Web capabilities to reach customers directly. And their efforts are being noticed.

In a move to strengthen the services it provides to sponsors of defined contribution plans such as 401(k) plans, Nationwide Financial Services Inc. in April purchased a company that provides third-party money management services to plan participants.The company, Registered Investment Advisors Services Inc. (RIA), which is based in Dallas, has been providing investment management services since June 2002 to plans that are part of Nationwide's Best of America Group Pension Series programs. Based on that experience, Nationwide executives say tighter integration with RIA Services will provide plan participants with expert advice on how to manage their retirement funds, and it will enable Nationwide to expand these services to other plans.