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Arlington, Va. - As insurers scramble to minimize risk and make the most of business opportunities related to climate change and other severe weather-related losses, the National Science Board, Arlington, Va., is asking for $300 million in additional funds to help fund a multi-agency effort to improve hurricane science and engineering research. In a draft report released yesterday, "Hurricane Warning: The Critical Need for a National Hurricane Research Initiative (NHRI)'' the report calls for "a determined effort to maximize our understanding of hurricanes and ensure the effective application of science and engineering outcomes for the protection of life and property,'' the report states." And while no individual weather event can be attributed to global warming, a growing body of new scientific data show that rising temperatures are likely increasing the intensity of hurricanes, and other extreme weather events in the U.S. and globally. Hurricane-related losses in the U.S. totaled $168 billion in the last two hurricane seasons, and 1,450 storm-related deaths were reported, according to the report. Analysis performed by the science board found that most hurricane-related funding is focused on short-term forecasting efforts, with less than 2% aimed at improving structural design and engineering for buildings. Annual funding for the government's "focal point'' for storm analysis, the National Oceanic and Atmospheric Administration's Hurricane Research Division, has never exceeded $5.1 million, states the report, and its staff has declined by 30% in the past decade. "Billions of tax dollars have been provided for rescue, recovery, and rebuilding after hurricanes strike," notes the board. "Also important is national investment in the creation of new knowledge, and more effective application of existing knowledge to reduce these enormous public outlays, loss of life, and the associated societal disruption caused by hurricanes." The National Science Board, the governing board of the National Science Foundation (NSF), was established in 1950 to promote the progress of science, advance the national health, prosperity, and welfare, and secure the national defense. One lawmaker, referencing the report, has introduced bipartisan legislation to implement a national research initiative designed to better research, predict and prepare for hurricanes. U.S. Senator Mel Martinez, R-Fla., crafted the proposal working from recommendations presented by the National Science Foundation's new draft report. The bill's original cosponsors include Senators Mary Landrieu, D-La., David Vitter, R-La., and Bill Nelson, D-Fla. "Hurricanes, by far, cause more economic damage to a more widespread area than any other natural disaster. This bill takes sound, scientific recommendations and builds from them a foundation for better, more coordinated research," said Martinez. "Given the enormous cost associated with hurricanes, we ought to better coordinate research and information about hurricane prediction, observation, the vulnerability of structures and how we might develop better evacuation plans." The legislation would place responsibility for implementing and overseeing the NHRI on the National Oceanic and Atmospheric Administration (NOAA) and the National Science Foundation (NSF). The bill sets out specific goals for NHRI research, including predicting hurricane intensification, storm surge, rainfall, and inland flooding, improved observations, assessment of vulnerable infrastructure, interaction of hurricanes with engineered structures, improved computational ability, improved disaster response and recovery, and evacuation planning. The proposal also would establish a National Infrastructure Data Base in order to provide a baseline for developing standards, measuring modification and loss, and establishing public policy to better understand hurricanes and tropical storms. A Science Board task force has studied the issue of nationwide investments in hurricane science and engineering since December 2005. Its report warns that relative to the tremendous damage and suffering caused by hurricanes, the federal investment in hurricane science and engineering is insufficient, and as the board document exclaims, "Time is not on our side." Sources: Sen. Mel Martinez, The National Science Board, and Insurance Networking News Archives

The stats have arrived- survey results from insurers and researchers have one thing in common: Baby boomers are not prepared for retirement, and therefore insurers could be missing out on business. Some companies are stepping up, using technology to capture this pending market.Allstate's 2006 Retirement Reality Check survey reveals that 40% of Americans admit they are not saving seriously for retirement. One unexpected finding, according to the survey, is that Generation X respondents (those born from 1965 to 1978) are more likely than their elders to describe themselves as financially independent-73% of gen-Xers compared with 67% of baby boomers.

YOUNG INDEPENDENT AGENTS WANT MORE TECHNOLOGYYoung independent insurance agents identify technology to help them more easily write business and service customers as the second most important thing-after competitive rates-carriers can offer an independent insurance agency. Drive Insurance Group of Mayfield Village, Ohio-based Progressive Casualty Insurance Co. discovered this while conducting a survey of more than 750 young (40 years of age or younger or those who have been in the industry less than 10 years) independent agents. The majority of young independent insurance agents (79%) say technology has been significant in helping them grow their business. Other results from the survey showed 11% have an interactive Web site where customers can quote, buy and contact them. Thirty-four percent have a static Web site where people can learn more about their agency and the services they provide, and 40% don't have a Web site at all.

VOICE SELF-SERVICE AND CUSTOMER INTERACTION MANAGEMENTThe customer interaction management software suite from Genesys Telecommunications Laboratories Inc., headquartered in Daly City, Calif., enables SAP solutions to integrate with voice self-service functionality from Genesys' Voice Platform. The integration of voice self-service with the back and mid-office is designed to simplify access to SAP solutions and make them available to a larger set of users across the organization.

In the highly competitive European insurance marketplace, Paris-based Groupama Insurance Co. Ltd. has built a reputation on the personal touch and close relationships it develops and maintains with customers. However, the carrier, which has been in business for more than a century, needed more efficient ways to work with its growing roster of customers. For decades, Groupama relied on customer support and contacts provided through its network of agencies. As business grew, the carrier sought to better capture and provide information in a more consistent and automated fashion, while still retaining the important relationships that had been built between agents and customers.Through business growth and mergers, Groupama became a leading mutual insurance company in France, with eight million customers and annual revenue of close to 13 billion Euros. The company now has more than 26,000 employees across France alone, as well as an additional 4,000 across nine other countries.

BUSINESS SOFTWARE DEVELOPMENT SERVICES FOR ATLANTICNew York-based Atlantic Mutual Insurance Co. chose MFX to provide business software development, maintenance and enhancement services from MFX's data center facility in Roanoke, Va. MFX hired the application support staff previously supporting Atlantic Mutual's proprietary business software applications. The new team will support Atlantic Mutual, as well as gain knowledge and exposure to MFX's proprietary products including WriteNow, ClaimsAssure and RiskVault. Atlantic Mutual's proprietary business software applications will continue to be owned by Atlantic Mutual.

Carriers operate in a complex environment that challenges their ability to do business efficiently and cost effectively. As regulations become more complex, customer needs, behaviors and demographics, distribution channels, product design and service delivery models are changing. Although technology is key to product and service delivery, most insurers struggle with outdated applications and infrastructures, while facing the looming brain drain as baby boomers retire.Once IT outsourcing was considered merely a method of reducing cost through labor arbitrage. Now the situation is more complicated, with other factors, including regulatory compliance, weighing heavily in many outsourcing decisions. Business continuity-that is, how to stay in business should a major event such as a natural or man-made catastrophe or a pandemic occur-is an emerging reason for outsourcing or distributing some business functions or support facilities across geographies. Each insurer organization is different and the reasons for determining what and when to outsource vary within industry sectors and by business model.

Mayfield Village, Ohio - The Drive Group of Progressive Insurance Cos.'s Web site (www.driveinsurance.com) received a "Standard of Excellence" WebAward in the insurance category from the Web Marketing Association (WMA).The WMA judged more than 2,300 Web sites from 35 countries that were entered into the 2006 competition. Each site was assigned three or more judges from a panel of independent Internet experts and evaluated on seven criteria including: design, innovation, content, technology, interactivity, copywriting and ease of use.

Denver - Englewood, Colo.-based InsureMe online service earned four standard of excellence awards from the Web Marketing Association (WMA).The WMA was developed to help set high standards in Web marketing and development. The association's annual Web Marketing Award names the best sites in 96 industry categories in 33 countries around the world. Submitted sites are judged on seven criteria: design, innovation, content, technology, interactivity, copywriting and ease of use.

San Francisco - A majority of consumers who experience problems visiting or making transactions on insurance Web sites will abandon transactions entirely or even turn to competitors, according to results of a consumer survey. The survey, commissioned by San Francisco-based TeaLeaf Technology Inc. and conducted by Rochester, N.Y.-based Harris Interactive Inc., focused on U.S. consumer transaction experiences on shopping, banking, travel and insurance Web sites. About nine in 10 (88%) online consumers experienced problems when transacting online, potentially impacting an estimated 4.5% of all online consumer transactions, according to survey results.Hundreds of respondents submitted vignettes of bad online experiences, most concerning failed, inaccurate or incomplete transactions, endless "loops" in a business process or inability to simply checkout at retail sites. One respondent who used an insurance Web site said, "[I] paid an insurance payment online through their Web site and it didn't go through. I ended up paying a late fee because of it."

Hartford, Conn. - The Hartford Financial Services Group Inc. enhanced The Hartford At Work Web site to enable employees covered by The Hartford's group benefits plans to more quickly and easily access their benefits information.A new, personalized log-in feature is one recent enhancement to the Web site (www.thehartfordatwork.com). The Web site has been updated with new tools for employees to set up direct deposit for payment of long-term disability claims, to use and print forms and to access personalized benefits account information.

Boston - Liberty Mutual Group enhanced its online workers compensation claims management to provide faster service and better outcomes. The Boston-based insurer provides those responsible for managing a claim instant online access to all of the related documents, while protecting the privacy of confidential medical information."We made a great claims management system even better by slashing the time required for documents from outside resources--such as medical reports, bills and even digital photos--to be available in the system," explains Kevin Carson, who manages the new process. "What took days can now happen in seconds. Outside partners can now send electronic versions of these reports, which instantly become part of our system. Other providers still send paper documents, which we now scan into the system within a day of arriving at Liberty Mutual."

New York and Walldorf, Germany - Health insurance companies may be able to collaborate next year with providers, public health authorities and pharmaceutical companies on a new health network being proposed by Germany-based business software provider SAP and Bermuda-based consulting firm Accenture.The Collaborative Health Network (CHN) network initiative will be based on SAP NetWeaver technology, which links a range of information and data. Designed to streamline the way health insurance companies and other stakeholders access, integrate and share information, the network will help organizations maintain reliable, accurate electronic health records that are accessible quickly by multiple parties, the companies said in a release. It will use an enterprise service-oriented architecture (enterprise SOA) to help reduce IT costs and enable automated collaborative processes among industry participants. The first release of the solution will be available mid-2007, predicts the companies.

Philadelphia - CIGNA Group Insurance (CGI) enhanced its disability claims reporting platform to provide customers more robust self-service capabilities via the Internet. Through one site designed to be secure and easy to navigate, employers now have access to a variety of critical operational claims information, such as advice-to-pay reports, individual claims status and new claim notifications, as well as analytical information, such as year-over-year trending data and health care reports (for customers who also have medical coverage with CIGNA HealthCare).The reporting capabilities are available to all new and existing self-insured and fully-insured disability customers who purchase any of Philadelphia-based CGI's short- or long-term disability products. The new platform, which includes a custom ad-hoc report builder is designed to help employers:

Boston - Markets in Financial Instruments Directive (MiFID), a European Union (EU) directive going into effect by November 2007, may affect the conduct of business and approach to operational risk of insurers that operate within the EU and who either provide or procure outsourced services.The directive will require that U.S. financial institutions—including insurers--operating within the EU that outsource an operational function to:

Portland, Maine - Companies across the disability insurance industry face similar challenges managing their claims processes largely due to rapid advancements in technology, according to results of a study of group and individual disability carriers' claims technology. The study--sponsored by Portland, Maine-based ClaimVantage Inc. and conducted by JHA, a disability reinsurance, consulting and research firm also located in Portland, Maine--revealved that 46% of the respondents indicated lower productivity levels and dissatisfaction with their current claims management technology.Some of the major issues identified in the study involve claims payment solutions, customized or over-engineered systems and image-enabled systems. Seventy percent of the respondents have semi-automated payment capabilities, while the remaining are fully automated on legacy systems with up to 20 years of in-house development built-in.

Northbrook, Ill.-based The Allstate Corp., sponsored a disaster preparedness resource called the Catastrophe Readiness Clearinghouse and its Web site, (www.catastrophereadinessclearinghouse.com).The Clearinghouse, which is housed and managed by Centereach, N.Y.-based Middle Country Public Library, is a collection of disaster preparedness data and support available to anyone who visits the library. It includes a complete disaster preparedness information-portal Web site that is available to people everywhere.

Springfield, Mass. - Massachusetts Mutual Life Insurance Co. (MassMutual), based in Springfield, garnered the top spot in DALBAR Inc.'s latest WebMonitor rankings of the best Web sites in the life insurance and annuity industry.FieldNet, the Web site for financial professionals produced by MassMutual, received an "Excellent" designation for the 9th straight quarter and earned 1st place for six of those quarters.

Chicago - Aon Consulting, the human capital consulting organization of Chicago-based Aon Corp., report that Anne Kemp and Kathleen Skapik have joined the electronic discovery business unit. This unit is part of the IT Risk Consulting group, a division of the company's Financial Advisory and Litigation Consulting Services practice.

Portland, Maine – Results of a study measuring insurance industry challenges as well as how technology can assist disability carriers in successfully managing claims operations indicate that carriers are dissatisfied with their current claims management technology.