Core systems

Newark, Calif. – In light of recent dire news about global warming, Risk Management Solutions (RMS) has hired a climate scientist, will pursue initiatives to enhance catastrophe modeling, and will undertake focused case studies to assess the economic implications of climate change for communities and for business. The Newark, Calif. provider of products and services for the management of catastrophe risk announced the first of such initiatives: the appointment of Dr. Celine Herweijer to the position of Principal Scientist, Future Climate. The newly designated role reflects a commitment by the company to explore the evaluation of future climate risk for today's economic, business, and political decisions, says the company. Herweijer is a climate scientist, recognized for her work on modeling drought and the impact of oceans on climate. In her new role, Herweijer will lead RMS work around the wide-ranging implications of future climate risk. Based on accumulating evidence, there is a resounding consensus among scientists that the Earth's climate is changing in response to increases in greenhouse gas emissions from human activities. The global warming trend has accelerated since the 1970s, and 11 of the last 12 years have ranked in the top twelve warmest years since 1850. A warming climate leads to changes in the nature and occurrence of extremes - tropical and temperate windstorms, droughts, heatwaves, and wildfires, as well as floods of all kinds - and for some regions and perils, RMS expects increases in the severity and/or frequency of catastrophic events. RMS climate modelers are already investigating where and how such impacts should be incorporated in catastrophe models that assess current risk, and how to model changes in risk into the future. "For many regions and perils, hazard of the past is different from the hazard of today, which is in turn different from the hazard of the future," said Dr. Robert Muir-Wood, chief research officer at RMS. "Society is still coming to terms with the profound implications of this - in addition to concerns for the safety and welfare of residents of vulnerable communities, future risk and future value is already beginning to impact today's economic and political decisions, from investment in a ski resort, to development in a canal estate in the Caribbean." The examination of future climate risk is an important development that will help us to meet the needs of business and society, said Herweijer. "We have reached the stage where the economics of the consequences of climate change is going to become a principal motivation for taking action." Source: RMS

Pearl River, N.Y. & Atlanta, Ga. - Star Trek's William Shatner will kick off the 2007 ACORD LOMA Insurance Systems Forum at the Walt Disney World Dolphin in Lake Buena Vista, Fla., May 20-22, 2007, according to the two industry associations.

New York - A number of life insurance executives recently surveyed by Deloitte & Touche USA LLP's insurance industry group related that technology is more likely to be considered a barrier at this point in time, rather than a strength. Many stated they can do better in terms of streamlining the growth processes to enhance the distributor and customer experience, and they do not believe their technology is as advanced as it can and should be.The survey of 20 C-suite executives from top life insurance companies, as well as an analysis of life insurance industry growth patterns contributed to a report--"Organic Growth for Life Insurers: A Playbook for Market Advantage."

MODELS UNVEILED FOR NATIONWIDE HEALTH NETWORKPrototypes for a standards-based nationwide health information network (NHIN) were scheduled for presentation at a conference last month in Washington, according to the U.S. Department of Health and Human Services (HHS).

ADOBE EXPANDS ACROBATAdobe Systems Inc., San Jose, Calif., introduced Adobe Acrobat Connect software, a Web conference and collaboration product with "always-on" personal meeting rooms. It is designed to enable workers to connect online instantly with a Web browser and the ubiquitous Flash Player software. Together with Adobe Acrobat 8 software the expanded Acrobat family accelerates the flow of business by allowing people to work together in real-time, according to Adobe. The new, extended Acrobat family brings together the two critical components of knowledge work-documents and people. Acrobat Connect enables users to choose a Web address for their online personal meeting room, with unlimited use for up to 15 participants for one monthly fee.

CANAL SELECTS TRUMBULL FOR SUBROGATION MGT.Canal Insurance Co., Greenville, S.C., entered an agreement with Trumbull Services, Windsor, Conn., to use Trumbull's Subrooutsource, an internally developed, advanced system designed to enhance subrogation recovery activities for all lines of business nationwide. Trumbull, in conjunction with an experienced subrogation team, will manage the entire subrogation process, leveraging the system's abilities to increase recoveries through effective resource allocation, automated workflows and a continuous improvement model.

Fayetteville, Ark. – The Gramm-Leach-Bliley Act (GLBA) has not created significant synergies between commercial banking, investment banking, merchant banking and insurance activities, according to a finance researcher at the University of Arkansas. It also had little effect on bank profitability and productivity.

Needham, Mass. - Carriers need to step up their technology preparedness to get ready for industry-altering regulatory issues poised to have major impact on the U.S. insurance industry in 2007, according to new research from TowerGroup. These issues include a national catastrophe fund, an extension of the Terrorist Risk Insurance Act, and an optional federal charter.

New York - New York Life Insurance Co. promoted Alexander Burbatsky to senior vice president in the corporate information department, reporting to senior vice president Eileen Slevin.

Dallas - Insurers name e-signatures and online applications; document management, workflow and imaging; and Web self-service for distributors and/or customers (portals) as the technology strategies they are very likely or likely to implement, according to a survey from Dallas-based Robert E. Nolan Co.

New York - Two technology providers each released a Nationwide Health Information Network (NHIN) prototype in one week—first Armonk, N.Y.-based IBM and now Accenture. Accenture demonstrated its prototype solution for a fully integrated health information system at the 3rd Nationwide Health Information Network Forum on Thursday, Jan. 25, 2005, in Washington, D.C., where IBM also demonstrated its prototype. The solution shows that patient data can be extracted from disparate information systems and converted to a common format that enables sharing among physician offices, medical laboratories, hospitals and other clinical settings.

Malvern, Pa. - A number of chartered property and casualty underwriters that belong to the CPCU Society believe that the industry will experience greater integration of productivity-enhancing technology into day-to-day insurance operations. They'll also face more regulatory pressures, compounded by a growing risk of class action litigation. That said, the members, who were surveyed last year, believe that they are well equipped to deal with the industry's upcoming challenges. The CPCU Society, which counts more than 26,000 members in its ranks and is headquartered in Malvern, Pa., released the results today of a November survey of its member opinion panel. In this first survey of a two-part series on insurance career outlooks, members of the panel were asked for their views on the industry's future, and what any impending changes would mean for their careers. Members did raise concern, however, about the preparedness of their industry to deal with the upcoming wave of retiring Baby Boomers. Combined with a projected shortfall in the number of new entrants with the necessary technical and subject skills, 66% of survey respondents foresee an "experience gap" as very likely to form in the next five years if nothing is done. Their suggested countermeasures include more aggressive recruiting efforts; improved training; retaining retiree capital via consulting, mentoring, and flexible scheduling; more competitive compensation and benefits; and enhanced positive visibility for the industry and its career options. "It's become very clear that education of its employees will be critical to the success of the industry's future," says Betsey Brewer, CPCU, 2006-2007 president of the CPCU Society. "Employers must recruit the best and brightest, especially applicants who hold a professional designation, like the CPCU, and/or have significant industry experience," she says. Source: CPCU Society

Omaha, Neb.-- Mutual of Omaha launched a Web site where consumers can receive information on insurance, free rate quotes and purchase a variety of Mutual of Omaha insurance products, the company reports. The site, www.mutualofomahabuyonline.com, is described as a one-stop shop for consumers who prefer a less-traditional avenue for purchasing insurance. "We recognize that some people are not only comfortable with researching online, they actually prefer to purchase online, too," said Tom Graham, senior vice president of Direct-to-Consumer Marketing at Mutual of Omaha. "We want to provide access to products that serve the consumer when, where and how they choose." The site currently offers accidental death insurance, cancer insurance as well as adult and juvenile life insurance through Mutual of Omaha and its life insurance affiliate, United of Omaha. Mutual of Omaha opened its doors for business in 1909. Source: Business Wire

Armonk, N.Y. - Framing it as flexible roadmap for insurance companies, governmental regulatory agencies and other healthcare related organizations and researchers, IBM unveiled its technology foundation for the Nationwide Health Information Network (NHIN) yesterday. The technology is designed to enable secure access to healthcare data and real time information sharing and exchange of healthcare data among physicians, patients, hospitals, laboratories and pharmacies, and other stakeholders, regardless of where the medical data is located. As reported in INN in December, two such stakeholders, America's Health Insurance Plans (AHIP) and the Blue Cross and Blue Shield Association, have agreed to support a common set of standards for the network, according to published reports. Under contract to the U.S. Department of Health and Human Services (HHS), Office of the National Coordinator for Health Information Technology (ONC), IBM developed a standards-based system, based on a service oriented architecture (SOA) to connect information that allows for a secure nationwide healthcare information exchange across widely dispersed healthcare communities. The IBM solution will bring patients and clinicians one step closer to electronic medical records and a more efficient, flexible and cost effective healthcare delivery system, says the Armonk, N.Y. company. IBM's NHIN prototype is installed and operational in three healthcare marketplaces and allows seven hospitals and 24 physicians located in Research Triangle/Pinehurst, N.C.; Guilford and Rockingham Counties, N.C./Danville, Va. and Mid-Hudson Valley, New York to securely access and exchange medical and personal health data, regardless of underlying applications and locations of data. Central to the IBM NHIN prototype effort is the use of important interoperability standards for healthcare published by the Health Information Technology Standards Panel (HITSP), key SOA interoperability principles and advanced data management algorithms developed by IBM scientists. In addition, IBM software and IBM's Health Information Exchange, used to collect and share health data electronically from an exchange platform, will help physicians access and view a patient's electronic medical records even if those records originate from disparate systems in multiple locations, reports the company. Also, the use of the IHE Framework (Integrating the Healthcare Enterprise) sponsored by the Electronic Records Vendors Association and the Health Information Management Systems Society (HIMSS) played a major factor in allowing participants to support this initiative. IBM will demonstrate its prototype NHIN Architecture during The Third Nationwide Health Information Network forum to be held Jan. 25 - 26 in Washington D.C. Sources: IBM, INN archives

New York - European and Asian life insurers are outpacing their North American counterparts at streamlining and centralizing their policy administration systems--the core systems that support and deliver insurance products for their customers, according to a global survey of more than 100 insurance technology professionals, which was commissioned by Bermuda-based Accenture.

Austin, Texas - CastleBay Consulting Corp., a consulting services firm to the P&C insurance market, has launched and will facilitate the P&C technology blog to offer the industry an open forum for opinion, conversation and experience-sharing. Sponsored by Guidewire Software, a San Mateo, Calif., provider of insurance technology and services, the P&C technology blog is intended to coalesce and share perspectives from a broad group of technology minds in insurance for the benefit of the entire industry. The objective of the blog is to facilitate ongoing discussion, debate, and unbiased information-sharing on a broad range of insurance technology topics. “It has been a long-standing challenge in our industry for insurance technology professionals to find in-depth and unbiased technical and market expertise – expertise that is needed by virtually every insurer to make the most informed IT decisions,” says Castle Bay CEO George Grieve. “This challenge is the driving force behind establishing the P&C technology blog and making it available to the industry wide technology community.” Grieve will provide his technology insights and experience on the blog while encouraging other authors to share their unique voices and to weigh in on insurance technology relevant topics. In addition to the blog, the site will also offer a wide range of current and frequently updated insurance technology related content and links. Users can access the blog at http://insurancetechnology.typepad.com. Source: CastleBay Consulting and Guidewire

Dayton, Ohio - Anthem Blue Cross and Blue Shield launched a pilot e-prescribing program in two Ohio communities in an effort to reduce medication errors and the time physicians spend managing prescriptions.Currently, less than 22% of physicians nationwide use the basic capabilities of e-prescribing, according to the Center for Medicare and Medicaid Services (CMS), Baltimore, Md. CMS estimates that the use of such technology could eliminate as many as two million harmful drug events each year.

Atlanta - LOMA has released a new edition of Life and Health Insurance Underwriting, for the first time in downloadable PDF format, the life research and education association reports. The revised textbook introduces risk assessment principles applied to underwriting individual and group life and health insurance and provides a thorough introduction to underwriting terminology and concepts. The text is assigned reading for LOMA’s underwriting course, UND 386.

Indianapolis - In the latest move by the insurance industry to participate in reducing the effects of global warming, the National Association of Mutual Insurance Companies (NAMIC) unveiled a new Web site this week: www.climateandinsurance.org. The site is designed to help address the increasing concerns about climate change and its impact on the property/casualty insurance industry. "There has been considerable discussion of climate change and the insurance industry taking place within state, federal and international policy venues. Increasingly, climate change is discussed in the context of public policy in the areas of flood and other natural disaster insurance, emergency preparedness and response, and reinsurance, among others," explained Chuck Chamness, president and CEO of the Indianapolis-based organization. Chamness said the site will not advocate a position on the scientific controversy of the causes of the increase in natural disasters around the world. "Instead, it contains information and leading thought about how climate change impacts the insurance industry, and what insurers and reinsurers in the U. S. and Europe are doing with this issue," Chamness added. David Reddick, NAMIC's associate director of public policy and editor of the Web site, said podcasts, blogs, videocasts and other interactive features will be added to the site, depending on the needs of its users. Reddick said the site will also report on the status of the National Association of Insurance Commissioners (NAIC) Climate Change and Global Warming (EX) Task Force and other regulatory or legislative efforts. NAIC has long been active in promoting education for natural catastrophe and associated risk management. "As public policy begins to develop more fully on climate change, the industry's response will be a key feature of the site," Reddick said. "We're anxious to get feedback to help us make this a significant resource for those in the industry as well as other interested and involved parties, including other information sources, policymakers, the media and consumers." Insurance Networking News (INN) further reported on the industry's response in August 2006, citing several carriers that are stepping up their efforts to more fully engage the global warming topic. For example, Firemen's Fund Insurance is launching a first-of-its-kind 'green' coverage, including rate credits and other incentives, for commercial building owners who re-build damaged properties using green and LEED-certified (Leadership in Energy and Environmental Design) building practices. California-based Firemen's Fund will begin seeking state regulatory approvals this month so that the products can be offered in states around the country this fall. Marsh, the world's largest insurance broker, and AIG, the world's largest insurer, launched carbon emissions credit guarantees and other new renewable energy-related insurance products that are allowing more companies to participate in carbon offset projects and growing carbon emissions trading markets. The carbon trading market in the European Union alone is expected to hit $30 billion by the end of 2006. And Japanese insurer, Tokio Marine & Nichido Life, reforested more than 7,500 acres of angroves in Indonesia, Thailand and several other countries to minimize losses from rising cyclone-related risks. Yet for all the industry's efforts, it must do even more to address the growing impact of climate change-induced damages, according to a new report by World Wildlife Fund (WWF) and Munich-based global insurer Allianz Group. In October 2006 INN described a report, Climate Change and Insurance: An Agenda for Action in the United States, which examined the latest scientific findings about climate change, including the impacts of forest fires, storms and floods, and the potential impact on the insurance industry and its customers. According to the report, climate change has the potential to significantly alter and intensify destructive weather patterns in the United States, leading to increased flooding, forest fires and storm damage. The most direct risk to the U.S. will likely come from hurricanes, which are expected to become more frequent and powerful. Additionally, rising sea levels over the coming decades could inundate many US coastal cities and portions of some coastal states. Forest fires could become even more frequent and larger. These changes could make insurance unaffordable for customers in high-risk areas. In fact, insurance premiums in states vulnerable to hurricanes are already increasing, and in some cases, insurers are exiting these markets altogether. Allianz and Washington-based WWF intend to engage the insurance industry, governments, regulators and others to better manage the risks associated with climate change, said the organizations. Sources: NAMIC, Insurance Networking News Archives

Boston - A new report recognizes 39 insurance companies as “Model Carriers” for “doing everything right” in technology initiatives. The companies, which were cited in a report by Boston-based Celent LLC, were invited to a Model Carrier Summit, which began today in New York.