Data and information management

Minneapolis - As part of the association's Executive Education Program, the Insurance Accounting & Systems Association (IASA) will present the 3rd Annual CIO Roundtable program on Tuesday, June 5. This exclusive, "by invitation only" event will feature expert educational sessions sponsored by IASA associate member companies, including: AT&T, Document Sciences, Duck Creek Technologies and OnBase Insurance Solutions by Hyland Software. Admittance to the CIO Roundtable is complimentary to any qualifying chief information officer registered to attend the 2007 IASA Annual Educational Conference & Business Show, June 3-6 in Minneapolis.

New York - Joyce A. Phillips will join American Life Insurance Company (ALICO), a subsidiary of American International Group, Inc. (AIG), as its president and chief operating officer, effective July 9. Phillips will report to AIG Executive Vice President Rodney Martin, Jr., who is ALICO chairman and chief executive officer and chief operating officer of the organization's Worldwide Life Insurance division.

Washington - Americans show a strong interest in controlling their own electronic medical records, according to a national survey released at a health IT conference.

One of my product managers recently returned from a conference on business process management (BPM). Among the many predictions he brought back was the notion that document and content management are headed for a convergence with BPM.Analyst firms such as Gartner have started examining the BPM components of content management suites, giving higher marks to those with "extended business process management functionality." (Magic Quadrant for Enterprise Content Management, October 2006.)

Malvern, Pa. – Members of the CPCU Society (Chartered Property Casualty Underwriter designation) now have access to an online tutorial that offers fundamental information about captives, the association reports. In its CPCU Society's May CPCU eJournal monthly electronic publication, "Captive Insurance Industry-What is it? Where is it? Why is it Important?," the association attempts to explain the mysteries of the captive insurance industry in plain English, starting with the history of captive insurance, the differences between captive insurance companies and traditional insurance companies, and the future market for captive insurance. The issue was written by Dennis Childs, CPCU, ARM, AMIM, ARe, RPLU, ASLI, MSIM. Childs is currently assistant vice president, commercial lines, product development, for Ohio Casualty Group. He received his CPCU in 1986 and has 35 years of experience in the insurance business in various underwriting and marketing roles with national carriers. Childs holds a B.A. degree from Transylvania University, and an M.B.A. from Boston University, with a specialization in insurance company management. Childs says that captive insurance companies have several definitions, but for the purposes of this article, he uses the following, from Kathryn Westover of the International Risk Management Institute: "A captive insurance company is a company that is wholly owned and controlled by its insureds; its primary purpose is to insure the risks of its owners, the primary beneficiaries of its underwriting profits are its insureds.” Beginning with the history of the captive insurance industry-with the first captive formed in Bermuda in 1963-Childs explains the multiple reasons behind the formation and subsequent growth of the captive insurance industry. He says the primary reason for the increase in popularity of this form of insurance was "the failure of the traditional insurance companies to meet the needs of an ever-growing and complex business unit." Childs also explains where the more popular captive domiciles are located and why captive insurance companies are important to the insurance industry and to commerce in general. Some current market status facts that Childs presents include the following:* There are 4,355 captive insurance companies worldwide.* Bermuda is the leading captive location of domicile, with 1,400 captives.* Currently 65 percent of Fortune 500 companies utilize a captive to meet at least one or more of their insurance needs.· Tillinghast estimates that the captive market now has $30 billion in annual premiums, and $130 million in assets worldwide. Childs concludes with some comments on what the future may hold in this area of insurance, saying "to meet the needs of corporate risk management for innovative and unique solutions to individual risk management, the need for captive insurance solutions will continue." The CPCU Society is headquartered in Malvern, Pa. Source: CPCU Society

For many carriers, policy administration systems are the ultimate "legacy applications." Many were custom-built years ago by in-house development teams and still run on mainframe systems with "green-screen" terminal interfaces.However, as carriers begin to explore ways to open up these systems-and make applications and data available to end-users across the enterprise-they are finding themselves at a crossroads, faced with the dilemma of whether to modernize or to replace core policy administration systems.

Customer satisfaction can make or break any business. When it comes to insurance, an agent's ability to provide top-notch customer service can have long-term consequences for revenue and can make or break a carrier's image in the marketplace. That may be why so many carriers provide agents with portals that create a win-win situation."Unknown [or objects of curiosity] a mere seven years ago, agent and policyholder portals are now required channels and are nearly ubiquitous at insurers," says "The Technology Foundations of Advantage for Insurers," a report from Boston-based Celent LLC.

To those questioning whether standards truly make a difference in our ability to function efficiently in the insurance industry, imagine a world without any. Like a congested intersection without benefit of traffic lights, chaos is bound to ensue.Agreed-upon standards embody the ultimate in collaboration: technical, personal and political. Their development requires agreement across disparate areas and agendas, yet those hard at work in their creation tend to ebb and flow with the technology requirements of the industry and focus on the promise of a win-win for all involved.

As always, discord roils the insurance industry. Factions battle over issues ranging from flood insurance reform and surplus lines legislation to state vs. federal regulation.Yet the splinter groups seem to agree on a couple of things. One is the desire to reduce regulatory involvement in day-to-day business. Why? Because, many carriers say, removing the compliance monkey wrench would reduce costs, increase the bottom line and make it easier to compete in our global marketplace.

The article "Brokers Cast a Wide Net With Electronic Exchange" in the March 2007 issue of Insurance Networking News brought a smile to my face. It confirmed the adage about nothing being new under the sun.During the 1970-1973 time frame, a group of brilliant, creative insurance and IT people in the Boston area formed a company called Transystems International. Their mission was to develop a system to facilitate placement of commercial lines risks over a proprietary network with a combination of hard copy and voice communications. More than $4 million (big bucks then) was spent in R&D during the analysis and design phase by about 40 people. Numerous discussions were held with Lloyds about the feasibility, data requirements, etc. Much of the systems design, data analysis and protocols had been worked out.

VOIP RECORDING PORTFOLIO EXPANDED BY CTI GROUP INC.CTI Group Inc., Indianapolis, a provider of VoIP call recording communications, has expanded its VoIP call recording portfolio to include SmartRecord Cards and Recording-enabled SIP Trunks.

CHUBB GOES TO SEA AS WELL AS TO WEB

Back in August, INN reported on a Forrester Research Inc. study that predicted insurance companies will gradually move away from geographic and product silos, focusing more on cross-domain business processes.The report predicted insurance companies will identify processes that can be implemented with common systems and configured for local needs and this trend will increase the use of business process outsourcing (BPO) as carriers outsource nondifferentiated processes.

Outsourcing provides the personnel and technology Swiss Re needs to keep growing commercial insurance lines at a blistering pace.Take the example of staffing at the century-and-a-half-old company, which has U.S. headquarters in Armonk, N.Y. With operations in 30 countries, Swiss Re would face a nearly insurmountable task trying to locate, hire and train employees for every office.

Patrick Snowball, executive director of Aviva UK, flew down to Mumbai, India in February to accept an award from the Indian software industry. But India's National Association of Software and Service Companies (NASSCOM) wasn't lauding the insurance giant for the jobs it was moving to outsourcing firms on the subcontinent. Instead, Aviva was recognized for taking jobs back.The previous month, Aviva transferred 1,600 employees in Bangalore from an outsourcing vendor, 24/7 Customer, to Aviva Global Services. It was the first move of its kind and size in the Indian business processing outsourcing industry, NASSCOM said.

Joe Beneducci, president and chief operating officer of Novato, Calif.-based Fireman's Fund Insurance Co., has urged lawmakers to grant insurance carriers their choice of state or federal regulation. INN asked him about those options.INN: States regulate the insurance industry. Why would some insurers want to switch to federal oversight?

Hartford, Conn. and Indianapolis - Two insurers—Travelers and Anthem Blue Cross and Blue Shield—announced online tools for their customers. Hartford, Conn.-based Travelers announced new technology launches: Umbrella Wired and OSHA Recordkeeping, as a new component of e-CARMA.Umbrella Wired online software program is designed to simplify the rate, quote and bind process for agents who offer small commercial umbrella liability policies.

Warren, N.J. - C-level executives and risk managers may not always see eye-to-eye when it comes to the risks associated with international expansion, according to the 2007 Chubb International Risk Survey. More C-level executives (43%) noted that international risks pose a greater threat to their companies than domestic risks, compared to only 16% of risk manager respondents. There are also differences in the types of risks that C-level executives and risk managers are most concerned about when it comes to the companies' multinational exposures. The survey reports 24% of risk managers cited natural catastrophes such as hurricanes and earthquakes as the top threat posed by a company's overseas business operations or the business it conducts abroad, and 24% of C-level executives found terrorism to be the top threat. "The findings illustrate the importance of an emerging trend toward closer collaboration between an organization's risk manager and its most senior executives," said Kathleen Ellis, senior vice president, Chubb & Son, and worldwide manager of the Multinational Risk Group for Chubb Commercial Insurance, Warren, N.J. "To effectively allocate resources, organizations need a clear, agreed-upon big picture of global risk-one that's built on many perspectives. Companies that don't take this holistic approach could find themselves unexpectedly self-insuring losses that occur outside the United States and Canada." Professional liability evolving internationally Respondents' perspectives also differed on international trends in professional liability. More than half of C-level executives (59%) believe that employment practices liability is becoming a more serious source of risk outside the United States and Canada, while most (55%) risk managers say directors and officers liability is becoming a more serious source of risk. "These differing viewpoints on employment liability practices and D&O liability are intriguing, and we are keeping an eye of both issues-especially D&O liability," said Evan Rosenberg, a senior vice president at Chubb & Son and global specialty lines manager for Chubb Specialty Insurance. "There have already been more than a few significant D&O liability lawsuits in Europe. In addition, as more countries develop their own insurance marketplace, more of them could make D&O insurance compulsory or require the purchase of a locally admitted D&O policy to comply with local admitted laws. "Companies also need to recognize that some corporate governance trends start outside the United States. For instance, many European countries are taking a more aggressive position on disclosure than their counterparts in the United States on the global warming issue," said Rosenberg. According to Chubb's survey, only one in four companies (25%) is studying the impact of global warming on their business. "We have seen numerous shareholder proposals in the proxy statements of U.S. companies with respect to global warming; however, we have not seen a lot of disclosure from U.S. companies about what they are doing or their position with respect to global warming." Global growth continues "The ability to identify and successfully address emerging international exposures becomes increasingly critical as companies continue to become more global in nature," said Ellis. Of total survey respondents, 67% indicated that their company is likely to expand its operations outside the United States and Canada in 2007, and 86 % anticipated that revenue from these operations is likely to increase over the next five years. Respondents planned on growing their businesses through a variety of ways, including the introduction of new products (72%), an increase in employee headcount (66%), opening a plant or an office (62%) and the acquisition of another company (47%). Overall, survey respondents identified the following as the top threats to their overseas business operations or the business they conduct abroad: terrorism (18%), natural catastrophes such as hurricanes and earthquakes (17%), political instability (13%) and supply-chain failure (13%). In addition, the survey reported that the economic and political forces expected to have the greatest impact on a company in 2007 include increased competition (23%), rising fuel costs (15%) and the devaluation of the dollar (14%). "Today's multinational companies face diverse exposures to risk, and this makes it critical to develop enterprise-wide risk management programs," said Ellis. "Corporate executives and risk managers must look at all the risks to their business, domestic and international and whether they are insurable or not, if they wish to more fully protect their business operations." The 2007 Chubb International Risk Survey was conducted jointly in March 2007 by Opinion Research Corporation, a worldwide research firm in Princeton, NJ, and the Chubb Group of Insurance Companies in Warren, NJ. The Internet survey queried chief executive, operating and financial officers as well as risk managers at 242 U.S. companies. Summaries of the major report findings can be found on Chubb's Web site at http://www.chubb.com/corporate/chubb6893.pdf. Source: Chubb

South San Francisco - Financial services firms and banks have a far less clear picture of their business, and the factors that will ensure their future success, than they imagine, according to a report authored by Bernard Marr, a world expert in Strategic Performance Management and research fellow at the UK-based Cranfield School of Management. The report, 'Managing Strategic Performance in Banks and Financial Services Firms; From Going through the Motions to Best Practice' was published by Actuate Corp. a South San Francisco provider of intelligence, performance management and reporting applications, takes an in-depth look at 15 of the world's leading banks and financial services firms (including retail banks, investment banks, universal banks, one central bank and a mutual financial services firm) and their approaches to Performance Management to determine where firms are going wrong. At each company, between two and eight different principals, from MD to COO and CEO, were interviewed at great length about their Performance Management strategies. The report shows that many banks and financial services firms have been lulled into a false sense of security through over-reliance on historical financial information as their guide. They are failing to measure and manage the likely drivers of future performance - such as reputation, talent, customer relationships and organizational culture. Distracted by irrelevant and misleading performance indicators, or worse, failing to observe any of these indicators at all (despite being at pains to gather the data), organizations are selling themselves short by charging ahead with new business strategies, without bringing the rest of the business with them, or ensuring that every part of the firm is aligned with its current goals. This new report reveals that banks and financial services firms typically fall into three common traps when they approach Performance Management: measurement, compliance and risk - regardless of how formally they are managing performance, or the sophistication of the tools they are harnessing. Bernard Marr explains, "Despite being overrun with supposedly valuable performance data, many organizations appear to be plodding on regardless of the results. Already bloated Performance Management systems are being further obscured by compliance-related measurements, even though these might have little bearing on the future health of the business as measured by revenues, profit margins, competitive positioning and customer perception." Bernard continues, "Risk management activities, so vital in the financial services industry, are further clouding the picture. When these are not considered in the context of the wider goals of the business, organizations find themselves held back unnecessarily - or exposed to far greater risk than may be worth it for the business." In addition to identifying the challenges that organizations are facing, the report offers a series of best practices which include the effective application of Performance Management techniques, as well as the importance of measuring the factors that matter - not those which can be monitored most readily. These best practices are intended to guide firms toward success as they create a clearly focused, company-wide strategic performance culture. "Avoiding the traps identified in this research will guide banks in implementing a leading-edge Strategic Performance Management approach to keep them at the forefront of an increasingly competitive sector," said Richard Stark, director of Performance Management Solutions at Actuate. "Put Performance Management squarely in the context of the future of your business by measuring reputation, talent and customer relationships - use the results to improve behavior right across the organization and the results can be extremely powerful." To download the Cranfield report titled 'Managing Strategic Performance in Banks and Financial Services Firms; From Going through the Motions to Best Practice' please visit http://www.actuate.com/info/performance-mgmt-cranfield.asp. Source: Actuate Corp.

Toronto, Ontario - Pink Elephant, provider of IT management best practices, plans to launch ISO/IEC 20000 Essentials, a new course that will help organizations understand the benefits of adopting a quality approach to IT, as defined by the first global standard for IT Service Management, ISO/IEC 20000. Published by the International Organization for Standardization (ISO) in 2005, ISO/IEC 20000 is directly linked to the IT Infrastructure Library (ITIL), the best practices framework that focuses on aligning IT with the business, resulting in greater productivity and reduced costs. Despite the many strategic advantages, implementing ITIL has also been met with several challenges; primarily, gaining both management and staff support for a process improvement project. "By demonstrating a commitment to quality IT service provision, organizations can gain a competitive edge through ISO/IEC 20000 registration. We're seeing more RFPs that include this standard as a prerequisite," says Pink Elephant president David Ratcliffe. "ISO/IEC 20000 also plays an important role in preparing organizations for audits. With these two benefits alone, the executive team and IT staff can make a clearer connection between ITIL and how it addresses actual business pressures and concerns." The new ISO standard also allows the organization at large to receive recognition for following ITIL best practices, whereas before only individual ITIL certification existed; therefore, ISO/IEC 20000 represents a level of excellence that can be felt across all departments and is not limited to IT or its ITIL-certified practitioners. Pink Elephant's ISO/IEC 20000 Essentials is aimed at: * IT department staff of an organization that is considering or is already ISO/IEC20000 certified, so as to understand the breadth, depth and integration between the processes; * Contracts managers looking to construct RFPs to include ISO/IEC20000; the course will help explain what is involved in the standard; * Senior IT Managers, who will understand the importance of adopting a quality approach to Service Management and understand the value of ISO/IEC20000 accreditation; * Anyone involved in service provision; this course will show how ISO/IEC20000 will enable you to transform the service provision using best practice from ITIL and ISO9000. More information about course dates and locations, and in-house deliveries, will be available soon. Please visit www.pinkelephant.com for the latest updates or call 1-888-273-7465. For more information about ISO/IEC 20000, please visit www.iso.org. Source: Pink Elephant