Digital distribution

INSURER AUTOMATES INTERNAL CONTROLSPhysicians Mutual, based in Omaha, Neb., selected OpenPages FCM for its financial controls management initiatives. OpenPages FCM is an enterprise financial controls management solution designed to reduce time and resource costs associated with ongoing financial reporting regulations. It is expected to reduce Physician Mutual's time and costs associated with efforts to comply with changes to National Association of Insurance Companies financial reporting regulations. "OpenPages allows us to automate our ongoing assessment and monitoring of internal controls and ensure that compliance initiatives align with our business strategy," says Barbara Bergmeier, senior vice president of internal audit, Physicians Mutual.

Waukesha, Wis. - Markel American Insurance Co. launched its new Web site (www.markelinsuresfun.com). The site is designed to provide a single access point to people seeking to insure their recreation. The site enables customers and potential customers to quote and purchase insurance for their motorcycle, boat, personal watercraft and ATV all in one place. In addition, the site will be regularly updated with industry news, stories and trends to provide visitors with the information they are looking for to stay up to date on their favorite activities.

New York – New York Life Insurance Co. promoted Richard Eppink, Jr. to vice president in the Special Markets Department, reporting to first vice president Victoria Buhrow. Eppink is now responsible for developing and executing strategic direct marketing plans for the AARP Lifetime Income Program, New York Life's Tampa-based operation which markets and administers income annuity products to AARP members. Eppink joined New York Life in 1999 as an assistant vice president of marketing with the AARP Life Insurance Program, and was promoted to corporate vice president in 2002.

Bloomfield, Conn. - Juan Conde joined Bloomfield, Conn.-based CIGNA HealthCare as CIO. He is responsible for the IT strategy and delivery of CIGNA's consumer-focused technology solutions.

Bothell, Wash. - AMS Services, an insurance agency automation service provider that provides agency management, rating, benefits, performance management and carrier connectivity, announced the general availability of AMS Prevail Network, a Web-based marketplace of premium finance companies. The AMS Prevail Network is a free, agent-oriented marketplace designed to provide insurance agents one-click access to multiple premium finance offerings. More than 200 agencies are currently using the AMS Prevail Network for their financing needs. Agents simply launch the network from within their AMS Services management system and quotes, based on advanced finance matching rules, return in real time. The Bothell, Wash.-based AMS Services also announced that BankDirect Capital Finance, UPAC, Cananwill Premium Funding and Siuprem Inc. have joined the network of finance companies available through the AMS Prevail Network. The AMS Prevail Network provides users with direct access to a full range of terms, rates and financial services available on the market, with no switching fees for changing providers. The new sysem also enables users to use a browser to key in policy data once for multiple quotes, set up finance companies via via a single click, and use check boxes to choose the finance options within the agency management system. Source: AMS Services

New York - Look for accelerated growth this year of the outsourcing trends that predominated in 2006: Expansion of business process outsourcing (BPO), the maturing of the offshore market and more multi-sourcing at the expense of single, one-off “mega-deals.”

Kansas City, Mo. - U.S. Census projections issued in 2004 state the number of U.S population speak a language other than English at home will continue to trend upward. Two insurance industry organizations addressed this trend by launching Spanish-language Web sites.

Boston - Wrap platforms are changing the way UK insurance firms are able to distribute their products and will raise a number of challenges for IT departments, according to a new report issued by Boston-based research firm Celent LLC.

Cambridge, Mass. - Across every generation, females are more likely than males to say that life insurers meet their needs, and the relationship female seniors have with their life insurance providers is especially strong, according to new report by Forrester Research, Cambridge, Mass. Forrester's Report, "Do Financial Institutions Meet Customer Needs" evaluated the relationships consumers have with eight types of financial institutions, including insurance. This most recent report is based on findings from Forrester's NACTAS Q3 2006 Survey. No surprise, banks were reported as the most prevalent provider, and seven of 10 consumers in the report--across all age groups--believe that banks meet their current needs. Both male and female seniors believe that home and auto insurers meet their needs. At the other end of the spectrum, only about half of consumers of all ages think that their credit card providers meet their needs. Across all of the other institutions, the Generation Y Group (consumers born between 1976 and 1982) are the least likely to have a relationship with a financial institution, says Bruce Temkin, Forrester senior analyst and author of the report. "We also found that credit card providers most often meet the needs of seniors and life insurers meet the needs of females more often than they do males. Looking across the institutions, it's clear that younger Boomers could use more attention," says Temkin. For more information, visit www.forrester.com

New York - A number of life insurance executives recently surveyed by Deloitte & Touche USA LLP's insurance industry group related that technology is more likely to be considered a barrier at this point in time, rather than a strength. Many stated they can do better in terms of streamlining the growth processes to enhance the distributor and customer experience, and they do not believe their technology is as advanced as it can and should be.The survey of 20 C-suite executives from top life insurance companies, as well as an analysis of life insurance industry growth patterns contributed to a report--"Organic Growth for Life Insurers: A Playbook for Market Advantage."

Forget the stereotypes--ASP isn't just for small, IT-challenged carriers any more, and many of the ASP problems that gave insurance companies pause only a few years ago are being solved. Dollar savings and fast time to market are still big pluses for ASP, but today there are a lot of other reasons to consider it.The market among insurance carriers for ASPs, or application service providers, is growing by about 10% a year-slower than in most other industries-according to Marc Cecere, vice president and principal analyst for Forrester Research in Cambridge, Mass. From a supply-side perspective, that's partly because of the structure of the insurance industry and partly because of the regulatory scene for insurance companies.

Two factors that define a customer's image of an insurance provider are the quality of the buying experience and the effectiveness of the underlying communication. That's why carriers find a comprehensive enterprise communications platform critical. What's needed in communications is consistent excellence.Insurance carriers are feverishly modernizing almost every other aspect of their business, from claims and policy administration systems to agent automation. Large and mid-sized carriers alike are engaged in sweeping projects to grow their businesses and streamline internal processes. In many cases, those efforts provide an opportunity to embrace new capabilities. Yet their approach to document generation has remained static.

CANAL SELECTS TRUMBULL FOR SUBROGATION MGT.Canal Insurance Co., Greenville, S.C., entered an agreement with Trumbull Services, Windsor, Conn., to use Trumbull's Subrooutsource, an internally developed, advanced system designed to enhance subrogation recovery activities for all lines of business nationwide. Trumbull, in conjunction with an experienced subrogation team, will manage the entire subrogation process, leveraging the system's abilities to increase recoveries through effective resource allocation, automated workflows and a continuous improvement model.

Fayetteville, Ark. – The Gramm-Leach-Bliley Act (GLBA) has not created significant synergies between commercial banking, investment banking, merchant banking and insurance activities, according to a finance researcher at the University of Arkansas. It also had little effect on bank profitability and productivity.

Malvern, Pa. - A number of chartered property and casualty underwriters that belong to the CPCU Society believe that the industry will experience greater integration of productivity-enhancing technology into day-to-day insurance operations. They'll also face more regulatory pressures, compounded by a growing risk of class action litigation. That said, the members, who were surveyed last year, believe that they are well equipped to deal with the industry's upcoming challenges. The CPCU Society, which counts more than 26,000 members in its ranks and is headquartered in Malvern, Pa., released the results today of a November survey of its member opinion panel. In this first survey of a two-part series on insurance career outlooks, members of the panel were asked for their views on the industry's future, and what any impending changes would mean for their careers. Members did raise concern, however, about the preparedness of their industry to deal with the upcoming wave of retiring Baby Boomers. Combined with a projected shortfall in the number of new entrants with the necessary technical and subject skills, 66% of survey respondents foresee an "experience gap" as very likely to form in the next five years if nothing is done. Their suggested countermeasures include more aggressive recruiting efforts; improved training; retaining retiree capital via consulting, mentoring, and flexible scheduling; more competitive compensation and benefits; and enhanced positive visibility for the industry and its career options. "It's become very clear that education of its employees will be critical to the success of the industry's future," says Betsey Brewer, CPCU, 2006-2007 president of the CPCU Society. "Employers must recruit the best and brightest, especially applicants who hold a professional designation, like the CPCU, and/or have significant industry experience," she says. Source: CPCU Society

Omaha, Neb.-- Mutual of Omaha launched a Web site where consumers can receive information on insurance, free rate quotes and purchase a variety of Mutual of Omaha insurance products, the company reports. The site, www.mutualofomahabuyonline.com, is described as a one-stop shop for consumers who prefer a less-traditional avenue for purchasing insurance. "We recognize that some people are not only comfortable with researching online, they actually prefer to purchase online, too," said Tom Graham, senior vice president of Direct-to-Consumer Marketing at Mutual of Omaha. "We want to provide access to products that serve the consumer when, where and how they choose." The site currently offers accidental death insurance, cancer insurance as well as adult and juvenile life insurance through Mutual of Omaha and its life insurance affiliate, United of Omaha. Mutual of Omaha opened its doors for business in 1909. Source: Business Wire

Dayton, Ohio - Anthem Blue Cross and Blue Shield launched a pilot e-prescribing program in two Ohio communities in an effort to reduce medication errors and the time physicians spend managing prescriptions.Currently, less than 22% of physicians nationwide use the basic capabilities of e-prescribing, according to the Center for Medicare and Medicaid Services (CMS), Baltimore, Md. CMS estimates that the use of such technology could eliminate as many as two million harmful drug events each year.

Washington - A coalition of insurers, technology companies and health care organizations is working to provide free electronic prescribing to every physician in America.

The road seems less bumpy these days for insurance carriers that use state-of-the-art automated compensation to calculate and track agents' commissions. A single streamlined third-party system can replace a hodgepodge of legacy software and manual processes, users say, helping to reduce clerical work, increase accuracy and improve reporting. Moreover, carriers report that the software opens up a whole new world of analysis that pinpoints the true sources of profit and helps identify and retain the best agents.The accuracy rate for commissions at Blue Cross Blue Shield of Florida, for example, has improved from 80% before introducing up-to-date automated compensation to 95% after the implementation, says Linda Lamb, BCBSF vice president of sales business management. The remaining errors arise from data entry miscues or software problems outside the system, she says.

Washington - Two conservative Fox News commentators, Bill O’Reilly and Morton Kondracke, are slated to speak at insurance industry conferences in the coming year.