Digital distribution

Two celebrated anti-aging experts are joining Humana Inc. in what the company calls a multi-media campaign to turn passive healthcare users into active healthcare consumers.

Jersey City, N.J. - ISO, a Jersey City, N.J., provider of data, analytics and decision-support solutions, is extending its product set and focus to the healthcare industry with its plans to acquire the assets of Urix, a Cheshire, Conn., provider of healthcare analytics and employer reporting solutions. Terms were not disclosed. The Urix product set includes Web-based business solutions that enable health insurers, national brokerage firms and large employers to derive strategies to improve the quality of health care while lowering the cost of delivery. Urix is a developer of Web-based healthcare analytic solutions that are scalable and cost-effective, the companies report. ISO entered the healthcare sector in 2004 with the purchase of Boston-based DxCG, a company widely recognized as a world leader in predictive modeling software solutions. ISO will form a single company containing the Urix and DxCG assets doing business under the Urix brand name. Urix CEO John Farrell will serve as president of the combined entity; Michael Coyne will serve as COO. "With so many synergies between the Urix business intelligence solutions and DxCG predictive modeling capabilities, it makes sense to combine our assets and approach the market with a unified set of solutions," said Michael Coyne, head of DxCG. "Our teams will create new and, in many cases, unique solutions by working together closely," continued Coyne. ISO's chairman, president and chief executive officer, Frank Coyne, cited ISO's plans to combine Urix and ISO's DxCG unit as "an excellent opportunity for ISO to expand its presence in the healthcare business intelligence market by leveraging complementary strengths in both companies' product lines. We expect the new entity to lead the market with a host of solutions designed to improve the quality and efficiency of our nation's healthcare system," said ISO's CEO. Source: ISO

Mountain View, Calif. - eHealth Inc., the parent company of eHealthInsurance Services Inc., spent $50 million developing an electronic platform to sell health insurance through the Internet. The company’s business model? Serve the growing market of uninsured and underinsured consumers with online tools and ultimate health insurance products. The Mountain View, Calif., company, plans to raise $47.1 million in an initial public offering next week. In its prospectus the market for private health insurance brokering is a mess, stating that except for large companies buying insurance in bulk, finding medical coverage is time-consuming, paper-wasting, complicated and expensive. Most individuals, families and small businesses who buy their own medical coverage find insurers using local agents who serve a single community, offering insurance from a small handful or even a single insurance carrier. Through its Web site, eHealth has sold health insurance electronically to 325,000 consumers, and points to this statistic: More than 40% of those customers were uninsured before finding the site. That means the company thinks its site, which offers 5,000 health insurance products through 150 insurers, including Aetna and UnitedHealth, can tap into an underserved and fragmented corner of the estimated $658 billion market for private medical insurance. About 17 million Americans, including self-employed people, buy their own medical insurance (as opposed to electing coverage through an employer's plan), and the company said that number is growing. A rising number of small businesses have stopped offering medical benefits to employees, forcing these people to buy their own coverage or risk life without insurance, the company said. The U.S. Census estimates 46 million Americans are uninsured, and the company said many of these people have jobs, make decent salaries and would buy their own coverage if only they could find an affordable plan. That's where eHealth's business model comes in. eHealth's site offers online rate quoting and information, health plan comparisons, and online applications linking consumers with insurers. The variety of policy offerings and efficient brokering process in theory would help consumers find cheaper coverage. As a broker, eHealth offers insurers new market opportunities, access to electronic data about consumers and simplified policy processing, which reduces costs. The company takes a percentage off the insurers' premiums. In 2005, eHealth booked $41.8 million in revenue, almost all from brokerage commissions, compared with $9.3 million in 2001. For the six months ending June 30, 2006, eHealth reported net income of $2.7 million, compared with a net loss of $209,000 for the same period a year ago. The company, led by Chief Executive Gary L. Lauer, has lost money most quarters since its 1997 founding as it sinks money into technology and marketing through direct mail, television and radio. But it hopes that by harnessing the Internet, it can grab a large share of a huge and largely untapped market. The company plans to sell 5 million shares at $10 to $12 apiece, giving the deal a proposed market cap of $271 million, and is reportedly using joint-lead managing underwriters such as Morgan Stanley and Merrill Lynch. The stock will trade on the Nasdaq under the symbol "EHTH." Source: Associated Press, MSN Money, Red Herring

Worcester, Mass. - The Hanover Insurance Group Inc., reports that it has enhanced its homeowners quoting and issuance process, making it easier for its agent partners to do business. The 150-year old Worcester, Mass., company, which sells property and casualty products and services to individuals, families and businesses through a network of independent agents, reports that it has implemented distinct and separate quote and issuance processes and introduced screens that are easier to read and navigate. The simplified homeowners screens were recently piloted with in Connecticut and Virginia, and include homes, condominiums and tenants policies. Other improvements include helpful links for cross selling allow agents to easily offer additional policies such as second home, auto or umbrella and improved navigation and "help" icon efficiently answers agent questions. Hanover also provides a link to the Marshall & Swift/Boeckh Replacement Cost Estimator, to help foster agent/customer discussions about the adequacy of their coverage. The enhancements, which were made based on direct feedback from agent partners, should cut the time it takes to quote a policy by 30% and reduce the number of accounts referred to an underwriter, reports the company. "We believe these enhancements, as well as planned future enhancements, will deliver additional growth opportunities for independent agents," says Marita Zuraitis, president of The Hanover's property and casualty companies. The improvements in agent services comes on the heels of last year's launch of Connections Auto product, which has driven private passenger automobile new business growth of more than 150%, reports the company. Source: PRNewswire

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.

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:

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.

Hartford, Conn. - Using a simple online search by zip code, Aetna members can find healthcare services at a variety of in-store clinics, the Hartford, Conn., company reports. Last week Aetna, announced its relationship with InterFit Health's RediClinic, Houston, which offers treatment for more than 25 common medical conditions, such as strep throat and ear infections, at health clinics located inside retail locations such as H-E-B in Texas, Wal-Mart in Arkansas and Oklahoma, and Duane Reade in New York. RediClinic also provides health screenings, medical tests, vaccinations, immunizations and physicals. RediClinic also offers a range of preventive health services, including health screenings, medical tests, vaccinations, and basic physical exams. Earlier this year Aetna announced a similar relationship with Minneapolis-based MinuteClinic's walk-in healthcare centers in Florida, Georgia, Indiana, Kansas, Maryland, Minnesota, North Carolina, Ohio, Tennessee, Washington, and the Washington, D.C./Maryland Capital area. Aetna, which serves just less than 30 million members, says those members who visit either clinic will pay the specialist office visit copay indicated by their plans. Aetna members can find the location of the nearest in-store clinic by visiting Aetna's "DocFind" directory and searching for a doctor in their zip code, selecting "specialist," identifying their plan, and then choosing "nurse practitioner" for specialty type. Members can also find locations by selecting "other facilities" as the type of provider, identifying their plan, and then choosing "view search results now." In announcing that InterFit Health's RediClinic has become a participating provider, William Hauser, M.D., Aetna's regional medical director for the Southeast and Southwest Regions, points out that as people's lives become busier, retail health clinics such as RediClinic can provide a convenient alternative for certain common health problems when a patient cannot see his or her primary care physician. "We urge members to continue to use their primary care physician as their first recourse for care of common health problems and to recognize that retail clinics are not meant to treat serious illness or emergency situations," he says. Source: Business Wire

Internet usage in China has grown rapidly over the past 10 years. In 1997, there were 300,000 computers and 620,000 users for services offered over the Internet.Statistics from the China Internet Network Information Center and forecasts from Celent LLC, a Boston-based research and advisory firm, show there are 49.5 million computers and 111 million people in mainland China who access the Internet. The online environment in China is also gradually improving. There are now 22.4 million computers in China that access the Internet via broadband access, representing 45% of computers that access the Internet, according to a recent Celent report, titled "Insurance E-Business Trends in China."