Core systems

HARTFORD, Conn.--Three years of rising property- casualty rates have finally had a favorable impact on loss reserves, substantially reducing estimated deficiency, according to the latest annual study on the subject by Conning Research & Consulting.

HARTFORD, Conn. -Travelers Property Casualty Corp. and Applied Systems, Inc. announced one of the industry's most significant implementations of industry-standard, ACORD-based agency/carrier interface (SEMCI) processing to support the transition of business relative to recent agreements between Travelers and other carriers.

HARTFORD, Conn.--Insurity Inc., a ChoicePoint company, today announced that Insurance Company of the West (ICW), a business unit of The ICW Group, has selected Insurity's Commercial Intellisys property/casualty policy processing services to support its nationwide commercial P&C business. ICW's primary decision drivers were Insurity's large existing client base, and a track record of similar applications already in production servicing the wider industry.

PARSIPPANY, NJ--MFXchange Holdings, Inc. (MFX) announced the launch of its end-to-end application service provider (ASP) commercial lines solution. The comprehensive processing system is Web-based and features the many benefits of ASP-based products. MFX's Ray Roy, Chairman, explains, "MFX's founding mission is to build technology solutions specifically to meet insurance carriers' needs for increased productivity, shorter processing timeframes and lower costs. We provide this, in part, through ASP processing that does not require large capital outlays for hardware and software and is highly cost effective."

DES PLAINES, Illinois -- The Board of Directors of the Alliance of American Insurers and the Board of Governors of the National Association of Independent Insurers (NAII) have adopted a resolution approving a merger agreement between the two national insurance trade associations.

(St. Louis, MO-December 11, 2003) Genelco Software Solutions, a division of Liberty Insurance Services Corporation and a developer of software applications for the life and health insurance industry, has joined IBM's ISV Advantage Initiative, a program designed to provide independent software vendors (ISVs) with technical and marketing support to help meet the specific needs of small and medium business (SMB) customers.

POOLESVILLE, Md., Dec. 12-- The insurance Fraud DetectionSystem (FDS), developed using Visual Analytics, Inc.'s award winning product, VisuaLinks, was successfully launched this past week by the Korean Financial Supervisory Services, FSS. The FSS announced that they have implemented and will be using this system to detect fraud through the integrated analysis of insurance-related data including accidents, contracts and claims.

HARTFORD, Conn., Dec. 11-- Aetna InteliHealth, Aetna's online consumer health information resource, and Aetna Navigator, the company's self-service website for members, have received 2003 eHealthcare Leadership Awards for Health/Healthcare Content and Interactive Site, respectively.

The old adage of "What, me worry?" isn't part of the lexicon of CIOs, CTOs and other senior level executives in charge of IT functions at life/health and property/casualty firms, according to a survey completed by Celent Communications Inc. in partnership with Insurance Networking News.Twenty executives from small, medium and large carriers paint a picture of insurance IT organizations in a double bind of diminished resources and increased demand this year and anticipated again in 2004.

Ask not for whom the bell tolls; it tolls for carriers' legacy systems. At least that's the conclusion of a survey conducted by Guidewire Software Inc., a San Mateo, Calif.-based Web-based claims system provider.Three-quarters of property/casualty and workers' compensation carriers are engaged in significant claims system projects, according to Guidewire (see chart). "Mid-sized carriers are really biting the bullet-looking at what's in front of them and starting to take steps," says James Kwak, vice president of marketing at Guidewire. "So we're seeing many of them looking at replacing their claims systems."

As insurance companies develop a blueprint for compliance to the Sarbanes-Oxley Act, an alarming number of U.S. corporations admit they are still uncertain about how they plan to adhere to the mandate.Moreover, industry experts believe that insurers who disregard the role of technology to comply with the Act might be in for a rude awakening.

The term "Web service" was coined only three years ago, according to Celent Communications Inc. And, already, U.S. insurers are spending roughly $78 million--or 5% of their integration dollars--on Web services-related initiatives (see "Web Services Spending By Insurers," page 14).What's more, by 2006, more than 40% of insurers' new systems integration spending will involve Web services, the Boston-based research and advisory firm predicts.

Rising somewhat like the Phoenix, an alternative bill that would provide compensation for workers injured by exposure to asbestos clawed its way through Congress in mid-October.Accepting a proposal drafted by Senate Majority Leader William Frist, R-Tenn., and his aides, insurers and defendants accepted a proposal on Oct. 16 to seed a trust fund projected to have enough capacity to settle $115 billion in claims over 27 years.

One of the core activities regularly performed by insurers-its telemarketing efforts is about to undergo modifications now that the federal Do Not Call (DNC) list has been given the green light for national enforcement.In October, a federal appeals court ruled that the Do Not Call registry-a list that currently includes about 50 million phone numbers-was within the legal boundaries of the Federal Trade Commission (FTC) and Federal Communications Commission (FCC).

After a prolonged lull in activity, consolidation in the insurance industry--marked by a new wave of proposed mergers and divestitures--appears to be gathering newfound momentum, with two major developments illustrating the potential changes that loom ahead.In late September, the board of directors of Boston-based John Hancock Financial Services Inc. and Manulife Financial Co., based in Toronto, unanimously approved a tax-free, stock-for-stock merger of the two financial services giants.

Never has the need for retirement planning been as great as it is today. Traditional sources of income such as Social Security and pensions will fail to meet the spending needs of future retirees.These factors portend a market of investors that will increasingly demand advice and guidance on the complexities inherent in retirement income planning.

In a California intellectual property lawsuit that could have sweeping implications over the way insurers and vendors approach software licensing agreements, a federal judge in late August granted a preliminary injunction barring San Diego-based Arrowhead General Insurance Agency from using insurance pricing software developed by a La Jolla, Calif.-based software solutions provider.In ruling against Arrowhead, a privately-held managing general agency, Chief Judge Marilyn Huff of the U.S. District Court for the Southern District of California prohibited Arrowhead's unlicensed use of the software in online insurance applications, including its Web-based distribution platforms, Arrowhead Exchange and YouZoom.com.

Privacy advocates will have to pin their hopes on Senate Banking Committee Chairman Richard Shelby, R-Ala., if they want to see national privacy standards enhanced through legislation extending provisions of the federal Fair Credit Reporting Act (FCRA) that expire at the end of this year.The House in September passed its version of FCRA legislation, via the Fair and Accurate Credit Transactions Act, using the measure more as a vehicle to provide citizens with increased protection from, and remediation for, identity theft.

Advocates of the use of credit scores in personal lines underwriting and rating could be excused if they are feeling a bit under siege lately.The industry has been generally pleased with the actions of state legislatures that have supported carriers' use of consumers' credit information for approving policies and setting policy rates.

Acordia Inc., the insurance agency arm of Wells Fargo & Co., sent a clear message in September that its integration with Wells Fargo is complete and it is once again an active buyer of agencies.Last month, Acordia announced three deals for agencies in Texas, Nebraska, and Pennsylvania. These purchases came on the heels of the purchase of a fourth agency, in Omaha, Neb., in August.