Data security

Chicago - Attendees at the International Insurance Society 42nd Annual Seminar in Chicago identified natural catastrophes--over pandemics, geopolitical instabilities, terrorism and man-made catastrophes--as the biggest threat to the future of the insurance industry.The question was posed to the more-than-100 attendees of the July 19, 2006 CEO Panel V: Catastrophic Risk and Insurability: Can the industry cope? Edward Liddy, chairman and CEO of Northbrook, Ill.-based Allstate USA and Pierre Ozendo, head of Americas Property & Casualty, Swiss Reinsurance America Corp. USA, Armonk, N.Y., spoke to the attendees on the subject.

Washington, D.C. - In the first of in a series of government meetings on modernizing insurance regulation, the focus on whether insurers should be given the option of being federally regulated took center stage this week at a U.S. Senate Committee On Banking, Housing, and Urban Affairs hearing on "Insurance Regulation Reform."

Jersey City, N.J. - Catastrophic wildfires cause extensive damage to property and significant disruption to the lives of property owners. In 2005, more than 8.5 million acres burned, nearly twice the 10-year average. This is according to ISO, a provider of products and services that help insurers measure, manage and reduce risk.With more people living closer to brushfire areas, which also happen to be preserves of privacy, the exposure has nearly doubled for insurers between 1970 and 2000.

Washington, D.C. - NASD has introduced a new series of free, on-demand video Webcasts for compliance professionals that's aimed at taking the mystery out of key regulatory processes and making firms' interactions with NASD more productive and efficient.The first installment of the new "What to Expect" series focuses on what firms can expect before, during and after an NASD examination and offers practical tips for making the process go smoothly. While all NASD-registered firms can benefit from viewing this Webcast, "What to Expect: Preparing for an NASD Routine Exam" will be of particular interest to firms on a four-year examination cycle whose examinations are coming up, given significant changes in the regulatory environment in recent years.

Cary, N.C. - Reaping business benefits now matches regulatory compliance as the key driver of enterprise risk management (ERM) systems according to a global survey of 339 financial services executives. These benefits include improved performance management, better risk-based pricing, and reduced capital allocation and credit loss. These are the results of research conducted by SAS, a business intelligence provider.A full 83% of participating financial institutions view ERM as a strategic priority, per the survey. Many are setting up new ERM or "integrated compliance" programs. The survey also found that credit risk management is still the top risk management expenditure priority for most firms. In addition, 78% of respondents view credit risk management as critical and anticipate significant, quantifiable economic rewards over the next 24 months, including a 10% reduction in economic capital and a 14% reduction in cost-of-credit losses.

Worcester, Mass. - The Hanover Insurance Group Inc., a regional property and casualty company has introduced a business owner's policy (BOP) class comparison look-up tool. The tool is designed to help The Hanover's agent partners quickly and efficiently categorize a small business owner's industry classification and obtain a quote for the company's Avenues BOP faster than ever."The new BOP class comparison look-up tool will simplify the quoting process for our agent partners, saving them precious time and helping them achieve even greater productivity," says Marita Zuraitis, president of The Hanover's property and casualty companies. "This tool is yet another example of our commitment to continuous improvement and to deliver on our promise to provide world class products and services, while doing whatever it takes to make it easy for agents to successfully conduct business with us."

To many insurance industry executives, compliance means spending gobs of money to avoid having their companies go public with ugly security lapses or pay fines from regulators, or avoid having themselves hauled off to the slammer for misstating information. However, the process of meeting compliance mandates need not be costly-and may actually help increase profits in the long run.For many carriers, there are ways to establish a common base of processes to address multiple mandates, as well as any future requirements. In addition, compliance management can bring new opportunities for gaining better efficiencies and supporting new business growth.

Do drivers who wear turtlenecks get in more accidents than drivers who don't? What if the theory proved true? Although it would be nice to find out whether this level of minutia affects accurate pricing of risk, when it comes to ratings, this question is not one insurers are asking-yet. But insurers are finding unique ways to price risk-from aggressive braking patterns to career choice. Progressive is one such insurer taking steps toward accuracy, and it's using technology to do so. Most recently, Mayfield Village, Ohio-based Progressive Direct Insurance Co. launched an odometer-reporting, Web-based pilot program in Iowa and Virginia. And, in the summer of 2004, the carrier began piloting a usage-based program in Minnesota called TripSense.Using a device called a TripSensor, which plugs into the ODBII port in newer vehicles, Progressive is collecting driver data in the hopes of creating a win-win for its underwriters and its policyholders.

AGENCY WEB PORTALNew York-based P&C Insurance Systems Inc. introduced a Web portal that allows direct Web-based upload of ACORD data from agency management software. The portal leverages the architecture of the PCIS management system to provide Web-based multi-line rating, real-time agency access to quote documents, and up-to-date agency production reports.

DESPITE DEADLINE, MANY FIRMS LACK AML PROGRAM

Insurance Networking News recently interviewed Marcus Ryu, vice president of consulting services, at Guidewire Software Inc., a San Mateo, Calif.-based firm that provides software to the P&C and workers' compensation industries. Ryu plays a central role in developing and implementing leading solutions for the insurance industry.INN: In the white paper titled, "Achieving Underwriting Excellence with Guidewire PolicyCenter," you cite a study by McKinsey & Co. What did that study reveal?

Yonkers, N.Y. – The August issue of Consumer Reports warns consumers that even drivers who have spotless driving records and have never had an at-fault accident may be faced with higher premiums if their insurer uses credit-based insurance scores.The report describes credit-based insurance scores as numbers that are computed from bill-paying and loan data collected by the major credit bureaus. They have become as important in determining annual premiums as driving records and neighborhoods, the magazine states.

Alpharetta, Ga. - ChoicePoint (NYSE:CPS) is acquiring the assets of Memphis, Tenn.-based USCerts, which provides technology and data management services to facilitate the remote ordering of certified birth, death, marriage and divorce certificates. Terms of the acquisition were not disclosed.USCerts combines technology with user-friendly interfaces to provide a secure, remote vital records ordering system. The company also provides a network for processing vital record requests by telephone, facsimile or the World Wide Web.

New York and Atlanta - Assurant Inc., a provider of specialty insurance and insurance-related products and services, has received two patents for call processing systems developed within its Assurant Solutions business.These systems optimize sales and retention efforts in contact centers through a series of dynamic customer and agent analytics. Assurant Solutions is offering the systems to its clients and making them available to other entities.

New York - A core concept of asset allocation, use of proper tools and technology, is part and parcel of successful portfolio management, yet many mutual fund firms do not provide tools to help investors with this important undertaking, according to a new report issued by Corporate Insight. The New York research firm takes an in-depth look at asset allocation tools provided by eighteen mutual fund firms.

Houston - Scalable Software LLC, an IT compliance and asset management solutions has launched IT Compliance Magazine, a magazine dedicated to the topic of IT compliance across all vertical industries and the public sector. IT Compliance Magazine is designed to showcase best practices and insights on revised, new and emerging regulations and standards that impact IT compliance, including:* Sarbanes-Oxley (SOX)

Kansas City, Mo., - Health insurance--critical to the peace of mind of most Americans--has become increasingly complex and expensive, according to The National Association of Insurance Commissioners (NAIC). A maze of options and cost considerations--from health maintenance organizations to health savings accounts--now confront consumers.To help individuals clear up the confusion and gain a better understanding of the costs of their coverage, the NAIC has assembled useful information about health insurance--all organized by life stage needs--on its new consumer education Web site called Insure U at http://www.insureuonline.org/.

Hartford, Conn. - Skyrocketing gasoline prices, the ever-changing competitive business environment, soaring health care costs--those are just a few of the high-pressure issues facing today's employers. The Hartford Financial Services Group Inc. understands that business owners often don't have the resources--or expertise--to track and analyze the health and disability trends of their employees.That's why the company provides its group disability customers with free annual analyses, tracking health, absence and productivity trends, such as frequency and type of disability claims. After the review, the insurer provides extensive reporting to update employers on trends impacting their business, as well as recommended strategies to help keep employees healthy and productive.

Hartford, Conn. - Travelers now offers new resources to assist businesses with disaster preparedness planning. Two new online tools and a new Safety Academy class, titled "Business Continuity Planning," have been added to help Travelers customers create customized disaster recovery plans that will ensure optimum business continuity in the event of exposures from natural or manmade disasters.Bob Brody, senior vice president, Travelers Risk Control, says, "Emergency planning should be at the top of every "To Do" list for today's businesses. With more than a century of experience in risk control, Travelers is uniquely positioned to help its customers anticipate and respond to a wide spectrum of exposures from catastrophic risks faced by businesses and homeowners."

Kansas City, Mo. - The National Association of Insurance Commissioners (NAIC) voted to amend its Model Regulation Requiring Annual Audited Financial Reports, commonly known as the Model Audit Rule. The amendments relate to auditor independence, corporate governance, and internal control over financial reporting.