Core systems

PALO ALTO, CALIF--Corporate America's information architecture is replete with obsolete, redundant and unused software applications--so many, in fact, that maintaining them drains tens of billions of dollars per year from the most information-intensive companies alone. However, nearly three quarters of these companies have no process in place for retiring outmoded software and less than half conduct regular software audits to see how much software is on the network.

BOCA RATON--The LexisNexis RiskWise Rate Evasion Evaluation service helps insurance providers prevent application and premium fraud using sophisticated models powered by public records data.

ALPHARETTA, Ga.--ChoicePoint today announced its acquisition of Priority Data Systems, based in Omaha, Neb., a provider of comparative rating software solutions to the independent insurance agency market. Terms of the acquisition were not disclosed.

The insurance industry was in shock after N.Y. Attorney General Eliot Spitzer dropped his bomb by filing a lawsuit in October against Marsh & McLennan. Spitzer charged the New York-based insurance brokerage firm-one of the largest in the country-with receiving payoffs from carriers for steering commercial business their way, rigging fake bids, and cheating corporate customers out of receiving advice in their best interest.Marsh and others in the industry have since suspended contingent commissions-the questionable payment structure at the heart of Spitzer's case. But no one can say for certain how broker compensation will change as a result of the investigations, which now include other brokerage firms and commercial and health carriers.

When insurance underwriting cycles turn sour, as they inevitably do, industry experts are quick to criticize the industry for not following strict underwriting guidelines. The easiest solution for insurers to turn a "soft" market around is to raise premium rates, but some carriers, such as Fireman's Fund Insurance Co., are revamping their underwriting systems to improve underwriting consistency and discipline.As part of a broad initiative that includes reorganizing its field force of independent agents and developing an enterprisewide approach to IT systems to support a cohesive distribution strategy, the Novato, Calif.-based carrier will implement the Accenture Underwriting Components Solution. The Web-based platform uses diagnostics and rules-based technology to help improve underwriting efficiencies.

Many insurers would agree that financial services convergence-the integration of bank, brokerage and insurance products sold under one roof-has not matured to the degree many had hoped four years after the passage of the Gramm-Leach-Bliley Act.The new director of distribution for The Hartford Financial Services Group's life insurance business, however, believes there is a great deal of untapped opportunity ahead-particularly relating to an insurer's ability to market products at the bank level. The key to the effort: make it as simple as possible for bank representatives to push insurance products out to their customers.

Each year, insurers identify the flexible, non-proprietary and enterprisewide benefits of Web services, although insurers continue to cite three prevailing reasons to table e-services investments for another day. These reasons include reliance on multiple legacy system operating environments, security issues and overall costs.In a survey of 132 property/casualty insurers conducted in October, Troy, N.Y.-based MapInfo Inc., a global provider of location-based geo-spatial software solutions, determined that there's been increased adoption of Web services and integration technology. The survey was largely targeted to IT managers and senior-level executives.

The Contracts Update section includes announcements of contracts insurance information technology companies have signed with customers in recent weeks. Contract news can be faxed to Insurance Networking News magazine at (312) 913-1366 or by electronic mail to Stephen.Dwyer thomsonmedia.com Accenture

Cedar Rapids--Fiserv Insurance Solutions, a unit of Fiserv, Inc. and an innovative solutions provider for the insurance industry, announced availability of the 1.2 version of Fiserv Advanced Billing, a Web-based system utilizing the J2EE (Java 2 Enterprise Edition) platform.

NEW YORK-- A poll of attendees at The Conference Group's 16th Annual Executive Conference for the Property-Casualty Industry has found that executives expect changes in the brokerage and regulatory models to have fundamental and long-lasting effects on the industry, including downward pressure on industry compensation, with pricing likely to increase.

EL SEGUNDO, Calif.--Computer Sciences Corporation

BOSTON--Blue Cross Blue Shield of Massachusetts (BCBSMA) has purchased the Interwoven Enterprise Web Change Management solution, powered by Interwoven OpenDeploy, to enable faster, accurate and cost-effective synchronization of a disaster recovery site for its member and provider Websites. BCBSMA also purchased the Interwoven Self-Service solution to maintain fresh, personalized content on its Provider Portal.

PORTSMOUTH, NH--Bottomline Technologies today announced the expansion of the company's financial Business Process Management (fBPM) solutions. These fBPM solutions are designed to streamline paper-driven order-to-cash and purchase-to pay processes -- enabling organizations to more effectively manage their financial assets and trading partner relationships.

Newark, Calif.--Risk Management Solutions (RMS), the world's leading provider of products and services for the management of catastrophe risk, today announced that it provided the risk analysis for a securitization of U.S. hurricane and earthquake risk by The Hartford Financial Services Group, Inc.

Seattle--Safeco announced it is once again expanding the product breadth available on its single-platform online sales center Safeco Now. In a breakthrough move for small-business insurance sales, the company has introduced functionality allowing independent distributors to quote and issue commercial multi-peril (CMP) policies in as little as five minutes.

Tata Consultancy Services, a global IT services firm based in Mumbai, India, has been named a "Preferred Partner" by ISO for the ISO Rating Service. ISO is a leading provider of products and services that help measure, manage and reduce risk. As a result, TCS' flagship insurance framework, Integrated Insurance Management System (IIMS), will be expanded with the content of ISO circulars--loss costs, forms assignment and rules based on state regulations--supported and validated by ISO's industry experts and actuarial staff.

One problem facing insurers who write commercial automobile coverage is that in states with mandatory auto liability reporting, also known as ALIR, carriers must report policy changes and cancellations electronically to state Dept. of Motor Vehicles (DMV).

Ken A. Crerar, president of The Council of Insurance Agents & Brokers, issued a statement in response to testimony at the Nov. 16 hearing of the Senate Governmental Affairs Subcommittee on Financial Management, the Budget and International Security.

Rating agency Standard & Poor's Corp. has identified four insurers that it believes distorted their financial statements by using "financial risk reinsurance." In a report released Nov. 16, S&P claims that the financial results of Atlantic Mutual Insurance Co., Argonaut Group Inc., CNA Financial Corp. and Liberty Mutual Insurance Co. were "materially distorted in an accounting context that contrasts with Standard & Poor's perception of the true economics of the transactions."

Sapiens International Corp. N.V. a provider of business-rules based insurance solutions based in Research Triangle Park, N.C., has signed a strategic agreement with ISO to offer the ISO Rating Service, a new rating system and rate-management offering for the property and casualty industry, integrated to its Policy INSIGHT policy administration solution.