Core systems

ISTREAM TO INCLUDE NEW FUNCTIONALITYWhitehill Technologies Inc., Moncton, New Brunswick, announced new functionality in the IStream document automation suite, including IStream Publisher and IStream Document Manager. The IStream suite is designed to enable business users to create 'model documents' that control the language, layout and look of complex files, such as policies and contracts. IStream can be used to create and control virtually any kind of insurance document, from contracts to welcome kits to group booklets. New functionality includes add-ins for Microsoft Word and Adobe Reader, letting users create complex documents in a familiar, easy-to-use, interactive environment. As data or standard wordings change, users can automatically update their documents to reflect those changes. Leveraging industry-standard applications gives insurers the power to create and update documents easily as part of their normal processes.

XL GLOBAL TO USE INTERCEPT TO MANAGE PROCESSESStamford, Conn.-based XL Global Services Inc., a part of the XL Capital Ltd. group of companies, will use Intercept Studio, a flagship product from Baltimore-based AVIcode, to manage business processes worldwide.

Boston, Mass. – Insurers around the country are making changes to their technology areas with the naming of new executives. Three such examples are Liberty Mutual Group, The Guardian Life Insurance Co. of America and NYMagic.James McGlennon has been appointed vice president and CIO for Liberty Mutual Agency Markets, a strategic business unit of Boston-based Liberty Mutual Group that consists of property/casualty and specialty insurance carriers that distribute their products and services primarily through independent agents and brokers.

Waltham, Mass. - Failure to properly terminate a policy tops the list of reasons property/casualty insurers are found to be out of compliance during market conduct exams, according to research from Waltham, Mass.-based Wolters Kluwer Financial Services' Insurance Compliance Solutions group. On the life/health side, failure to acknowledge, pay or deny claims within specified time frames is the most common market conduct compliance criticism for life/health.

Ipswich, Mass. - When it comes to the larger issues of Web site usability, communication and trust, Progressive and GEICO lead the way, according to consumers answering a survey for the Customer Respect Group (CRG), an international research and consulting firm that focuses on how corporations treat their online customers. This marks the fourth study in a row in which Progressive is ranked at the top. The Ipswich, Mass., firm released findings from its second quarter 2007 Online Customer Respect Study of the Automobile Insurance Industry. The study evaluated the Web sites of a representative sample of auto insurance companies. Using a common set of criteria, it analyzed corporate performance from an online customer's perspective. A directly comparable customer respect index (CRI) is provided for each company. The CRI is a qualitative and quantitative in-depth analysis and independent measure of a customer's experience when interacting via the Internet, reports CRG. Comprising six sub-indices that factor into three meta-concepts identified by customers as their critical concerns when using Web sites, the CRI includes: * Site Usability - How usable is the site to a wide range of users? This includes simplicity (ease of use) and attitude (accessibility). * Communication - How willing is the company to engage in a one-on-one communication to answer specific questions? This includes responsiveness (quality of e-mail replies - both speed and helpfulness -- response tone and other communication methods). * Trust - Can this site be trusted with your personal data? This includes transparency (clarity and comprehensiveness of privacy policies), Principles (respect for data privacy, cookie explanations) and privacy (respect for data privacy, clarity and comprehensiveness of privacy policies). The average rating for the industry was 5.4 on the 10-point CRI scale. This score represents an improvement since the last report, notes CRG, primarily in the area of privacy policy transparency and responsiveness to e-mails. As a result, auto insurers have moved up to the mid-range of all industries from the bottom quartile previously. The industry provides better and more concise information about policies and practices. GEICO and Progressive tied to lead the table, marking the fourth study in a row in which Progressive came out on top. GEICO showed improvement from its fourth place spot in the previous evaluation. American Family showed the most improvement overall from the previous study.

San Francisco - Mergers and acquisitions have become the norm in the insurance industry, and two recent acquisitions prove this. More than a month after Boston-based Liberty Mutual Group announced its acquisition of Fairfield, Ohio-based Ohio Casualty Corp. for $44 per share in cash, Wells Fargo Insurance Services Inc., a subsidiary of San Francisco-based Wells Fargo & Co., announces it will acquire Universal Insurance Services Inc., Grand Rapids, Mich. The acquisition is expected to close July 1, 2007, according to Wells Fargo.

Chicago - The Blue Cross and Blue Shield Association (BCBSA), Chicago, has established physician and employer advisory groups to further enhance the market development of its Blue Health Intelligence (BHI) initiative, the nation's premier healthcare database comprised of de-identified claims information from up to 80 million lives. "The addition of these groups will help BHI maintain its leadership in healthcare informatics," said BCBSA President and CEO Scott Serota. "We look forward to working with this esteemed group of employers and physicians. Their hard work will result in a database that will enhance the quality of information available to consumers, providers and employers." Launched in 2006, BHI will provide sharper insight into healthcare trends, delivery and best clinical practices, and information about the efficacy of treatments and new medical technologies. BHI compiles, analyzes and organizes data, which can then be used as benchmarks to conduct comparative analyses across a range of healthcare components. The first sets of benchmark data were released to participating Blue Cross and Blue Shield companies in December 2006. "The advisory groups will provide high-level strategic counsel and recommendations that will help us provide insight into important health issues," said Bob Greczyn, Jr., president and chief executive officer, Blue Cross and Blue Shield of North Carolina, and co-chair of the BHI board. The employer and physician advisory groups will be responsible for contributing research-based insights into issues critical to the public's health. In addition, they will monitor new market initiatives in the areas of healthcare costs and quality data, and track healthcare literature and trends in practice and technology. With this knowledge, these advisory groups will help identify opportunities for BHI to form new healthcare solutions in quality and transparency for employers, providers and consumers. "This input from the groups will guide BHI as it continues to establish itself as the most comprehensive collection of healthcare information in the industry," added Alice F. Rosenblatt, executive vice president, integration and information management officer and chief actuary, WellPoint Inc., and co- chair of the BHI board. The groups will meet separately with the first meetings convening this summer. Members will serve one, two-year term. The following is a roster of BHI's employer and physician advisory groups. BHI Employer Advisory GroupMember / Title / Company-- Delia Vetter, Senior Director of Benefits, Employee Services & Programs, EMC Corporation-- Bill Greer, Vice President, Benefits, Kellogg Company-- Mike Stoll, Vice President, Benefits, The Kroger Co.-- Greg Heaslip, Vice President, Benefits, Pepsico-- Bob Ihrie, Vice President, Compensation and Benefits, Lowe's Cos. Inc.-- Steve Lampkin, Vice President, Benefits Department, Wal-Mart Stores Inc.-- Mark Cullen, M.D., Professor of Medicine & Public Health, Yale University School of Medicine; Senior Medical Director, ALCOA-- Jeanne Denz, Director, Global Benefits, General Mills-- Martin Storey, Director of Benefits, Michelin North America-- Tom Jecklin, Manager, Healthcare Benefits, State Farm-- William Strahan, Vice President, Compensation and Benefits, Comcast-- Daniel Green, Deputy Associate Director, Center for Employee and Family Support Policy, Office of Personnel Management-- Anna Fallieras, Program Leader, Health Care Initiatives, GE Company-- Pascale Thomas, Director, Benefits, Corporate Human Resources, Verizon Communications Inc. BHI Physician Advisory GroupName / Employer / Contact, Title / Company-- H. Frank Farmer, Jr., M.D., Chairman and Practicing Physician, Florida Board of Medicine-- David Blumenthal, M.D., MPP, Samuel O. Thier Professor of Medicine and Health Policy, Harvard Medical School; Director, Institute for Health Policy, Massachusetts General Hospital/Partners HealthCare System-- Thomas Henry Lee, Jr., M.D., Professor of Medicine, Harvard Medical School, Network President, Partners HealthCare System-- Joel Bender, M.D., Ph.D., Corporate Director of Health Services, General Motors Corp.-- James R. Claflin, M.D., Specialist, Oklahoma Allergy and Asthma Clinic-- Kelly Kelleher, M.D., MPH, Professor, Ohio State University; Vice President for Health Services Research, Children's Research Institute, Columbus, Ohio-- David Filipi, M.D., MBA, Vice President, Medical Affairs for Methodist Physicians Clinic, Methodist Physicians Clinic, Omaha, Neb.-- William L. Roper, M.D., MPH, Dean, School of Medicine and CEO, UNC Health Care System, University of North Carolina-- Alan M. Garber, M.D., Ph.D., Henry J. Kaiser Jr. Professor; Director, Center for Health Policy; Director, Center for Primary Care and Outcomes Research, Stanford University; Staff Physician, Department of Veterans Affairs-- Jonathan B. Perlin, M.D., Ph.D., MSHA, FACP, Chief Medical Officer and Senior Vice President for Quality, Hospital Corporation of America (HCA)-- Frederick L. Brancati, M.D., MHS, Professor of Medicine & Epidemiology; Director, Division of General Internal Medicine, Johns Hopkins University-- Mark Cullen, M.D., Professor of Medicine & Public Health, Yale University School of Medicine; Senior Medical Director, ALCOA-- Allan Korn, M.D., Senior Vice President and CMO, Office of Clinical Affairs, Blue Cross and Blue Shield Association Source: Blue Cross Blue Shield

Washington - On-the-go consumers prefer to handle an increasing number of transactions themselves through self-service devices, and are more likely to do business with companies that make it easier to for them to do so, according to a new study conducted by BuzzBack Market Research for Dayton, Ohio-based NCR Corp. One exception though, according to the study, is insurance customers.

Needham, Mass. - For firms of all sizes and models, annuity processing has not seen much innovation, until recently. But even today, significant challenges remain to the straight-through processing (STP) of annuity applications and distribution of annuities, notes a report issued today by TowerGroup, a Needham, Mass., research firm. The emergence of several solutions aimed at streamlining and untangling the complexities of annuity processing and efforts by industry groups to create standards for annuity processing may be exactly what is needed to improve efficiency in both distributing and processing annuities, notes the report's authors, research director, brokerage and wealth Matthew Bienfang, and senior research associate Matthew Macauley. TowerGroup predicts that the distribution of annuities will follow much the same path as the mutual fund industry and its products. As with many products, competition will drive efficiency, and given the increase in scrutiny by both consumers and regulators, it is clear that the industry could use some assistance. Financial services firms simply cannot afford to summon the regulatory specter again, the firm claims. The move toward automation of annuity processing in the financial services industry is being driven by cost considerations, efficiency issues, and compliance but also, and more important, by demand for annuities. Variable annuities can be extremely complex products because of the number of riders, guarantees, taxes, and income features and have therefore traditionally been sold by an agent. According to the TowerGroup study, the majority of annuities are sold by a mix of agent types, such as independents, captives and financial planners. However, brokers also represent a large portion of the annuity sales model. With the exception of the unique affinity sales model of TIAA-CREF and its relationship with educators, direct sales of annuities make up next to nothing because of the aforementioned complexities and options open to the consumer. The complexity of these products adds to challenges inherent in the annuity sale, i.e., processing time both at the point of sale and in the middle and back offices of the distributors. For a broker in a traditional firm, processing an annuity application takes 45 minutes or more. If the application is deemed to be not in good order (NIGO), the processing time in the middle office increases by hours if not days, quadrupling the cost. The introduction of technology in annuity processing can have dramatic results, improving the processing time, decreasing the cost, reducing the instances of NIGO, and lessening the regulatory risk associated with the distribution of annuity products. As an example, one leading distributor of annuity products implemented several technologies that have not only reduced the processing time from 45 minutes to under 10 minutes but also enabled the firm to operate with greater distribution control and supervisory oversight, thus reducing regulatory risk. TowerGroup reports that companies that focus on simplifying products and providing income beyond simple annuitization are succeeding, and predict that, because independent agents continue to be the fastest-growing channel for distribution of variable annuities, agents and advisors will require access to tools that allow for product comparison and configuration to better serve their customers. Finally, automation and the integration of product information are key drivers in reducing the risk of annuity distributors, say the report authors. Source: TowerGroup.

London - Guy Carpenter & Company LLC, a New York-based global risk and reinsurance specialist and part of the Marsh & McLennan Companies, will mandate the use of electronic claims file (ECF) for in-scope claims for all Lloyd's markets from Jan. 1, 2008. This decision follows the successful implementation of Guy Carpenter's ECF initiatives and underscores the firm's commitment to further market reform, according to the company.

Thousand Oaks, Calif. - Blue Cross of California (BCC) introduces an enhanced Dental Blue Cost Estimator, an online tool designed to enable BCC's Dental Blue members to estimate their out-of-pocket expenses for common procedures such as cleanings, fillings and periodontal treatment. Members can access the Dental Blue Cost Estimator, through the recently launched Treatment Cost Advisor tool, to view estimated out-of-pocket costs by zip code.

Los Angeles - Farmers Insurance Group of Companies opened its second ServicePoint operation. The new call center is based in Austin, Texas and is dedicated to providing service and care to Farmers agents and their customers. The other center is in Olathe, Kansas.

Dublin, Ireland - The lack of a structured prioritization model for allocating risk and fraud budget resources is hindering many financial institutions in their fraud mitigation efforts, according to Research and Markets, which has announced the addition of new Javelin Strategy report "Risk & Fraud Budgeting Model: Prioritizing the 2008 Budget for Effective Fraud Mitigation" to their offering.

Washington, D.C. - The Department of Justice and FBI announced the results of an ongoing cyber crime initiative called "Operation Bot Roast," which has identified more than one million victim computer IP addresses.

Washington, D.C. - The federal government is seeking proposals to conduct trial implementations of the national health information network (NHIN).The Office of the National Coordinator for Health Information Technology in the Department of Health and Human Services has published a request for proposals for health data exchanges of various types. The exchanges will cooperate to ensure they can implement an interoperable “network of networks” over the Internet.

New York - The U.S. Government has granted SeaPass Solutions Inc. a broadly worded patent for the SeaPass Gateway Solution for "Interface Development Environment and Interface for Connecting Systems Having Different Data Structures," according to Eric Gewirtzman, CEO of New York-based SeaPass.

Boston - Blue Cross Blue Shield of Massachusetts (BCBSMA) and Atlanta-based health care information technology company MDdatacor Inc. will begin work on a pilot project utilizing health information technology to collect and analyze patient medical records to provide the treating physicians with reports that identify patients whose current treatment does not achieve published clinical guidelines.

Novato, Calif. - Joseph Beneducci tendered his resignation today as chief executive officer at Fireman's Fund Insurance Co., Novato, Calif.

San Francisco - The National Association of Insurance Commissioners (NAIC) today adopted amendments to the Viatical Settlements Model Act during the Association's Summer National Meeting in San Francisco.

New York - More than three-quarters (77%) of the 100 insurance executives representing the property and casualty and life sectors, along with key market participants who attended Standard & Poor's Ratings Services' 23rd annual insurance conference favored an optional charter for insurance regulation."It is not surprising that the conference participants selected optional federal charter with the emphasis on optional," says Standard & Poor's Insurance Practice Leader Grace Osborne. "The insurance market is becoming increasingly global in scope, and the U.S. insurance industry does not have a single voice to advocate U.S. interests with the foreign regulators and various accounting regimes."