Claims

Why is using technology to improve service to the agent distribution network so important? Our readers tell us that one of their chief concerns is agency attrition. One source quoted in this month's cover story talks about an 80% agent attrition rate within three years - that's a powerful number. Is it a question of insurance companies not understanding what agents need? Or is it a question of producers being unwilling or ill-equipped to adopt the technology necessary to compete in today's marketplace?Jeff Yates, executive director of the Agents Council for Technology at the Independent Insurance Agents & Brokers of America, suggests carriers can improve channel management by first seeking to understand the channel's challenges. To succeed, producers-especially those working with multiple carriers-must automate their processes while moving to a paperless environment and taking advantage of real-time rating systems. In the process, they can boost efficiency and productivity.

HARTFORD TEAMS WITH TECH GROUPThe Hartford Financial Services Group Inc., Hartford, Conn., is working with the largest technology trade association in Washington State to offer policies designed for the technology industry. The insurer will market the insurance to members of the Seattle-based WSA (formerly the Washington Software Association) through brokers and independent agents. Nationwide, the Hartford insures more than 50,000 technology companies.

WHITEHILL SOFTWARE HELPS CREATE POLICIESWhitehill Technologies, Moncton, New Brunswick, has shipped a new release of the InSystems product line, which helps create insurance policies. IStream Publisher 3.2 simplifies production of insurance documents by managing the process from the first draft of the contract language through the issuing of the policy. The software also supports service-oriented architecture (SOA), which increases IT agility, and includes predefined services for retrieval, assembly, rendering, delivery and storage.

The world record for the largest game of Chinese Whispers, also known as the telephone game or Pass It Down, was set by entertainer Mac King, Jan. 6, 2004, and involved 614 people.While it's safe to say King didn't pass on a message about ways to sell long-term care insurance, carriers and agents may be able to relate to the game of Chinese Whispers. Clear and efficient communication among the two groups can become difficult. And adding communication among agents and consumers can muddy the water even more.

Insurance Networking News asked David Pedersen, senior vice president at Insurity, Hartford, Conn., to explain how a data integration project can evolve from an enterprisewide objective to a successful way of life.INN: Do most insurance companies have a data strategy, and why is it important?

Liability Insurance Administrators (LIA), Santa Barbara, Calif., was drowning in paper and all the costs associated with generating it, filing it and keeping it around. With an average of 15,000 to 20,000 active existing insurance policy underwriting files, the firm, which provides error and omissions policies to real estate appraisers, found itself having to hire new clerical staff to handle processing, as well as finding new space for all the documents."In the beginning, we just had one clerical person who would answer phones, do the filing, issue quotes, and do all other clerical work," says Robert Wiley, LIA assistant vice president. "As the company grew year after year, we had to start divvying up those duties to stand-alone positions, receptionist, clerical staff and filing staff. Eventually we had to keep increasing our filing staff, and we're now at the point where we're an office of about 29 people. And we have four full-time file staff and three part timers."

CAT CLAIMSCustard Insurance Adjusters, a Norcross, Ga., independent loss adjusting company, contracted with Marshall and Swift/Boeckh (MSB), New Berlin, Wis., for MSB's IntegriClaim tool for field estimating and for its IntegriClaim Administrator, which provides a paperless, Web-enabled work environment, for use in Custard's catastrophe and home office claims divisions. The technology package will send claims seamlessly from the carrier to independent adjusters.

Hartford, Conn., October 23, 2006 – To help agents speed up the decision process and provide quotes for eligible small business customers, Travelers Select Accounts division of Hartford, Conn.-based St. Paul Travelers Cos. Inc. has introduced TravelersExpress for Master Pac.TravelersExpress is an approach to processing new small commercial policy applicants because risk evaluation and pricing are delivered to the agent up front during the submission process. It will be available initially to agents in Illinois, Utah and Nevada and rolled out nationally in 2007.

Pearl River, N.Y. - To eliminate redundant information requests, the ACORD-User Groups Information Exchange (AUGIE) is promoting a new questionnaire form, available online, that lets independent agencies organize data commonly requested by carriers.The form, Agency Questionnaire (ACORD 812), was developed after agents and brokers expressed concern that too much time is spent filling out multiple questionnaires, according to AUGIE leaders. "Every carrier seems to ask agencies the same questions every year," says Jo Ann Litwin, who chaired the AUGIE working group that addressed the problem. "The questions are generally valid, but many are also redundant--from year to year and carrier to carrier."

New York - New York Life Insurance Co. has launched a Web site called www.nylcareersforwomen.com to provide information about careers in life insurance for women at all stages of professional development.The site offers details on opportunities in sales and field management. A questionnaire on the site helps readers assess their interest in a sales career. In addition, the site provides information about working for New

Los Angeles - Farmers Insurance Group of Cos. introduces its new Mobile Catastrophe Command Center bus, which is designed to help its customers immediately after a catastrophe that may strike anywhere in the contiguous United States."The new Farmers Mobile Command Center bus was chosen as the catastrophe center-point for handling claims and servicing our customers," explains Frank Soldano, state executive, Farmers Insurance Group, Kansas. "The bus is equipped with the most state-of-the-art equipment available anywhere in the United States. It will enable Farmers claims representatives to offer claims help to our customers immediately following a catastrophe," Soldano said.

Bethesda, Md. - Suitability standards for annuity products and long-term care insurance that will apply nationally are the centerpiece of new standards just issued by the Insurance Marketplace Standards Association (IMSA), a Bethesda, Md.-based standards-setting organization for the life insurance marketplace. The new IMSA suitability standards incorporate the essential elements of the NAIC model regulations for annuities and long-term care. Inclusion of these provisions means widespread, national application of these consumer protection standards by IMSA companies. They will cover the 60% of the life insurance marketplace represented by IMSA-qualified companies. "These standards exemplify the best in the marketplace," said Leon Roday, chairman of IMSA chairman and senior vice president and general counsel at Genworth Financial, Richmond, Va. "The national application of the suitability standards among IMSA-qualified companies will benefit consumers with more consistent protections. These uniform standards will also be good for IMSA companies as they will be implementing one set of high standards rather than many different state standards." In addition to suitability provisions, the new IMSA standards adopt a streamlined methodology to more closely track the compliance approach of companies and regulators. The new IMSA standards are effective immediately with a compliance date of January 1, 2008. "This latest revision of IMSA's standards is the result of 18 months of work from a wide cross section of our companies including all sizes and product lines," said Brian Atchinson, IMSA president and CEO. For the first time, the group received input from a Standards Advisory Committee made up of representatives from NASD, AARP, NAIC, Standard and Poor's, A.M. Best, and the National Association of Insurance and Financial Advisors (NAIFA), added Atchinson. To qualify for IMSA membership, a company must successfully complete an internal assessment of its policies and procedures, and then an assessment by an independent examiner to confirm that it meets IMSA's rigorous Principles of Ethical Market Conduct. To maintain IMSA qualification, a company must demonstrate that ongoing business operations abide by IMSA's strict code of ethical market conduct with a new independent assessment every three years. Companies that qualify for membership in IMSA commit to maintaining high ethical standards and to being fair, honest, and open in the way they advertise, sell and service life insurance, annuity products, and long-term care insurance in the individual market. For more information about IMSA and a list of IMSA-qualified companies, visit www.IMSAethics.org. Source: IMSA

New York and Saint Paul, Minn. – Metropolitan Life Insurance Co. (MetLife) and Travelers Insurance Group Holdings Inc. renewed their agreement to offer Synchrony absence management services.Synchrony combines group disability insurance and the Family Medical Leave Act (FMLA) administration from MetLife with workers compensation insurance and claim administration services from Travelers to deliver one, integrated approach that can help companies better manage employee absences whether due to occupational or non-occupational events and assist employees in returning to work as soon as medically appropriate. First offered by the two companies in 1998, Synchrony programs currently cover more than 180,000 employees.

Needham, Mass. - The insurance industry is rapidly embracing service-oriented architecture (SOA), as well as related Web services and standards, according to TowerGroup research conducted in partnership with ACORD. TowerGroup interviewed senior leadership executives at more than 12 carriers and conducted more than 150 hours of data gathering and analysis across the industry (covering property/casualty, life and annuity, and reinsurance).Key findings of the study, according to Needham, Mass.-based TowerGroup, include:

Media, Pa. - A network of insurance and financial Web sites is creating an online national directory of business insurance agents, a move that observers are calling another ripple in a movement to expand insurance distribution on the Internet.

Hamilton, Bermuda - Big European insurance companies are embracing industrial operating models to cut costs and improve customer service, according to an Accenture survey of senior executives at 30 carriers based in Europe.The survey revealed that 92% of respondents are assigning high priority to "industrialization"--the use of standardized operating and production platforms similar to those used by manufacturers. The rest of the respondents--the other 8%--say they expect industrialization to become a priority in the next three years.

Houston - The insurance industry, where companies face an average of 1,696 lawsuits, spanning product liability and environmental class actions to directors and officers claims, and even coverage fights over hurricanes and terrorist attacks, faces the most litigation when compared to other industries, according to a survey from international law firm Fulbright & Jaworski LLP, headquartered in Houston. Retailers and energy firms reported average caseloads north of 330 per company, which doesn't even come close to the insurance industry.In its third annual survey of corporate litigation trends—pulling data from 422 in-house law departments worldwide—Fulbright found that U.S. companies face an average of 305 pending lawsuits internationally. For large U.S. companies—those with $1 billion or more in annual gross revenue—the number of lawsuits soared to 556 cases, with an average of 50 new disputes emerging each year for close to half of them.

Darien, Ill.-based Insure.com Inc.'s Web site has been named a "best site" for life insurance quotes by Kiplinger's Personal Finance magazine.The citation came in a special report called "The Best List" that appears in the November 2006 issue.

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