Core systems

HARTFORD, Conn.--The Hartford Financial Services Group, Inc. today announced it has completed the purchase of CNA Financial Corporation's group life and accident, and short-term and long-term disability businesses for approximately $500 million in cash. The transaction closed on December 31, 2003.

In the largest-ever civil insurance fraud case filed in the state of New York, Allstate Insurance Co., Encompass Insurance and Nationwide Mutual Insurance Co. last month filed a RICO (Racketeer Influenced and Corrupt Organization Act) lawsuit in the Supreme Court of New York.After 21 months of investigation, Allstate filed the complaint against 74 individuals whom the Northbrook, Ill.-based carrier alleges were either principals or employees of-or otherwise involved with-a group of companies established for the sole purpose of generating hundreds of millions of dollars in fraudulent insurance claims.

Alexandria, Va.-based Agents Council for Technology (ACT) is trying to sell independent agents on a new concept: using technology to enhance the sales and marketing aspects of their businesses.In phase one of a multi-part report designed to help agents and brokers build a disciplined, sales-driven agency culture, ACT, an affiliation of the Independent Insurance Agents & Brokers of America (IIABA), revealed in November that "as the independent agency system inevitably becomes more efficient, greater efficiency should improve productivity by enhancing the manufacturing and sales processes.

Insurers are turning introspective. They lived a charmed life when healthy investment returns covered for a lack of efficiency within their operations. Now, they have shifted their focus from asset management back to insurance basics.A new survey performed by the global insurance services practice of New York City-based Deloitte notes that insurers have shifted their focus after a protracted period of low interest rates and volatility in the equity markets.

The deal to merge the St. Paul Cos. and Travelers Property Casualty Corp. is on track to create the second-largest insurer in the country, with top market shares in 22 states, according to Jay Benet, chief financial officer of Hartford, Conn.-based Travelers.Benet, who is the designated CFO for the projected St. Paul Travelers Cos., discussed some terms of the deal in December at the Bank One Capital Markets Insurance Company Investors Conference. The deal, announced on Nov. 17, will be a tax-free transaction, with an exchange of 0.4334 St. Paul share for each Travelers share.

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 magazine at (312) 913-1366 or by electronic mail to Stephen.Dwyer@ thomsonmedia.com BIS Inc.

There's no question that independent agents are highly valuable participants in the insurance marketplace. But carriers that depend on independent agents are continually trying to determine what's important to them when they choose carriers.Two recent studies conducted by Celent Communications Inc. provide some insight.

Web-Enabled IllustrationTravelers Life & Annuity, Hartford, Conn., is providing to its brokers and producers the WinFlex Web illustration system from LifeLink Corp., Park City, Utah. WinFlex Web is a single entry, multiple carrier interface (SEMCI), which runs illustrations for multiple carriers' products on a single system via the Internet. Compared with the desktop version, WinFlex Web eliminates software distribution and installation difficulties and costs; ensures all producers use current software; provides valuable usage statistics; simplifies and accelerates new product introductions; enables brokers access to all approved carriers from one portal location; make bug fixes available immediately; and eliminates the need for Citrix-hosted solutions.

Zix Corporation, a global provider of protection, management, and delivery solutions for electronic communications, announces that Blue Cross and Blue Shield of Oklahoma, the oldest and largest private health insurer in the state serving almost 770,000 Oklahomans, has signed a three-year contract for ZixCorp secure e-messaging services to help meet the privacy and security guidelines of the Health Insurance Portability and Accountability Act of 1996 (HIPAA).

MILWAUKEE--Fortis Health signed its first individual medical Health Savings Account (HSA) policy, believed to be the first HSA policy in the country. The policy, which was opened by an individual residing in Aurora, Ill., is the first of the estimated over 40 million HSA accounts that will be established in the next 10 years, according to congressional analysts. Beginning January 1, 2004, Fortis Health will offer comprehensive HSA products for individuals and small groups through Fortis Insurance Company and John Alden Life Insurance Company.

NEW YORK -- The AIG Mergers & Acquisitions Division, a division of the property and casualty insurance subsidiaries of American International Group, Inc. (AIG), announced the launch of its newly designed global Web site, www.AIGMergerRisks.com.

ATLANTA --Ebix, a leading international supplier of software and e-commerce solutions to the insurance industry, announced today that it has changed its name to Ebix, Inc. from ebix.com, Inc. effective immediately.

LOUISVILLE, Ky. -- Healthcare Underwriters Group of Kentucky (HUGKY), a medical professional liability insurance company owned by Kentucky doctors, today received authorization from the Kentucky Department of Insurance to begin operations.

Harvard Pilgrim Health Care today announced the launch of a free, online service that allows insurance brokers to obtain rates and renew Harvard Pilgrim's small-group accounts at their convenience. Easy Online Renewal, which is a secure, password-protected feature of Harvard Pilgrim's Website, is the first service of its kind in Massachusetts .

OVERLAND PARK, Kan. --Sprint today announced it has expanded its relationship with the Blue Cross and Blue Shield Association (BCBSA) through a new, multi-million dollar agreement for Cisco Systems customer premise equipment (CPE) and maintenance.

Washington, D.C.-The American Council of Life Insurers (ACLI), the leading life insurance trade association in the U.S., today commended the Office of the U.S. Trade Representative (USTR), the U.S. Commerce Department and other U.S. Government Trade Negotiators for finalizing agreement with Guatemala, Honduras, El Salvador, and Nicaragua to form the Central American Free Trade Agreement (CAFTA).

EL SEGUNDO, Calif. -- Computer Sciences Corporation today announced that American United Life Insurance Company (AUL) has licensed Automated Work Distributor (AWD) software to improve the efficiency of its back-office operations by streamlining its business processes.

(Dec. 18, 2003) - The Principal Financial Group, the nation's 401(k) leader and premier provider of employee benefits, today announced a strategic agreement to acquire the Molloy Companies, headquartered in Indianapolis, Ind.

HARTFORD, Conn.--The Hartford Steam Boiler Inspection and Insurance Company (HSB) today introduced a plug-in property underwriting program for insurers and alternative risk transfer (ART) organizations. The program combines property reinsurance capacity with a complete turnkey set of underwriting and risk management services.

MORRISTOWN, N.J.--Under the New Jersey Insurance Fraud Prevention Act, Allstate New Jersey Insurance Company (Allstate New Jersey) and Encompass Insurance today filed a multi-million dollar civil complaint in the Superior Court of Morris County against Scott Greenberg,