Policy adminstration

Washington — Insurance industry associations are obliging to a request for comments by the U.S. Treasury Department as it conducts a review of the regulatory structure associated with financial institutions. Several associations used the opportunity to reiterate their opposition to the creation of the optional federal charter (OFC) for the insurance industry. Senators Tim Johnson, D-N.D. and John Sununu, R-N.H., introduced the National Insurance Act of 2007 into the upper house in May.

Needham, Mass. — The insurance industry has relied upon the independent agency system as a main distribution channel for decades. However, new business concerns are threatening its success and even its existence, according to recent research from Needham, Mass.-based TowerGroup Inc.

Needham, Mass — While the insurance industry has not typically been known for leading in technological innovation, new TowerGroup Inc. research finds that rapid advancements in technology are poised to reshape the insurance landscape over the next five to 10 years.

Oakland, Calif. — Kaiser Permanente has received the "Recognizing Innovation in Multicultural Health Care Award" from the National Committee for Quality Assurance (NCQA) for its efforts to provide health plan members across the country with culturally and linguistically appropriate health care services.

Washington – An extension to the Terrorism Risk Insurance Act (TRIA) has passed the U.S. Senate. The measure was approved on Friday by unanimous consent. The original TRIA was passed in wake of 9/11 and is set to expire on December 31.

Mayfield Village, Ohio - In early September, The Progressive Group of Insurance Cos., based in Mayfield Village, Ohio, announced a reorganization designed to increase the company's ability to execute on key strategies, lower its non-claims expense ratio and foster growth through more competitive pricing, improved customer retention and an increased focus on brand development. The reorganization included combining its agency and direct businesses into a single personal lines organization.

New York and Chicago - October 10, 2007-- Insurance Networking News (INN) and Celent LLC, announce a partnership to deliver INN's second annual ranking of technology solution providers to the insurance industry, including several enhancements to last year's program. This second annual ranking, called the Insurance Networking News VIP Awards, will be based on a survey of executives and staff from North American insurance companies, including property/casualty, life/health--and new this year--reinsurance. These insurers will identify their preferred technology providers in several categories, such as enterprise platforms, point solutions, platform technologies and services. Also new to the second annual program will be additional rankings by respondent type. The 2008 INN VIP Award winners will be determined solely by insurance carriers, brokers, managing general agents and agents. In partnership with Insurance Networking News, Celent, the most respected source of independent insurance technology and business research and advisory services, will conduct and manage the program's survey distribution, data collection and analysis. In Part II of the INN VIP Awards program, the top-ranked solution providers will be offered an opportunity to nominate an insurance carrier customer as a "visionary" for its use of a specific technology, and is encouraged to illustrate the role, if feasible, that ACORD data standards plays as part of their business and technology success story. INN's readers, its Editorial Advisory Board, and Celent's top insurance research analyst will determine this top-ranked technology best practice in action. "The INN VIP Awards program will provide an important perspective that will contribute to insurance company technology decisions," says Matthew Josefowicz, managing director of Celent's insurance practice. "We hope that the structure of this year's survey, with categories based on respondent type as well as technology categories, will make the results even more useful for INN's readers." For readers of Insurance Networking News who depend on the publication as the independent authority on information on how technology supports insurers' business strategies, the 2008 INN VIP Awards ranking and its accompanying analysis will provide insights into the leading technology solution providers across multiple categories. "This year's enhanced program reflects an honest and factual assessment of the technology solution provider landscape," says Pat Speer, editor-in-chief, Insurance Industry News. "Equally important, the enhanced INN VIP Awards program evokes the necessary discussion of the "why" behind the ranking. By including a critical educational component, such as how ACORD standards have helped facilitate the leading technology's application success, insurers can map to their own success." Winners of this second annual ranking will be recognized at an exclusive black-tie event held in conjunction with the ACORD LOMA Insurance Systems Forum in Las Vegas in May 2008, and will be featured in a Special Report by Insurance Networking News in the June 2008 issue. The special report will also be distributed at the ACORD LOMA Insurance Systems Forum in Las Vegas and at the IASA annual conference in Seattle. The INN VIP Awards ceremony will also be included as part of the INN NewsCast video broadcast. "We are delighted to work with Celent," says Speer. "Celent's research and advisory professionals represent exceptional industry acumen, which means our readers and the industry at large will have direct access to the knowledge and expertise generated as part of our collective research efforts." With six senior-level analysts in the United States, and three covering Europe and Asia, Celent's breadth and depth of insurance technology experience dates back to 2001. Celent is the only analyst firm to publish comprehensive reports on insurance software sales volumes and in-depth rankings of vendor software. Celent also publishes the widely read annual CIO survey and popular Model Carrier report, making the firm uniquely position to understand the buyer's side of the industry's highly competitive landscape. Contact Josefowicz directly via e-mail at mjosefowicz@celent.com if you have questions about the INN VIP Awards ranking, or wish to participate in the survey. To participate, please go to: www.insurancenetworking.com. Technology solution providers seeking more information about the Insurance Networking News' VIP Awards, or information about how to post the survey link on their Web sites, can contact Holli Gronset at holli.gronset@sourcemedia.com or 312-983-6178. About Insurance Industry News and SourceMedia, Inc.Insurance Networking News is a trusted source for information on how technology is being implemented to support insurers' strategic business objectives, providing insightful analysis of - and case studies on - how technology is being innovatively utilized to automate critical processes. Every issue of Insurance Networking News is written to help senior insurance executives bypass the hype and get to the heart of resolving industry challenges. Readers rely on carefully researched content that is both engaging and analytical.SourceMedia, an Investcorp company, is the pre-eminent provider of timely and essential market information - including industry news, analysis, research and insights - for members of the financial services community, as well as related fields such as accounting and technology. Through its comprehensive library of professional publications, suite of industry-standard data applications, and in-depth seminars and conferences, SourceMedia (www.sourcemedia.com) offers its clients and subscribers a valuable and sophisticated range of products and services. About Celent LLCCelent, LLC is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally experienced analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. More information about Celent's insurance practice is available online at www.celent.com/insurance.asp Source: Insurance Networking News and Celent LLC

Mayfield, Ohio - With an overarching goal to create a safer driving experience for its customers, The Progressive Group of Insurance Cos. is offering a virtual driving experience to existing and potential customers across America. The carrier is teaming with Metro City Group, a Laguna Niguel, Calif., owner of a 68-foot multimedia-equipped tractor-trailer, to provide drivers with the chance to test their skills in practical behind-the-wheel driving situations in a safe, virtual environment. With their eyes on the road and their hands securely placed at the “nine” and “three” positions on the steering wheel, people who experience the Progressive Driving Skills Simulator will increase their knowledge of the rules of the road and be better equipped to handle any driving situation. The driving course curriculum includes real-life situations--such as driving in high traffic, congested areas, through foggy or rainy weather or simply passing and yielding to other drivers--and the virtual technology system measures drivers' responses, reaction times, crash reduction techniques and general driving knowledge. "The interactive experience of the Progressive Driving Skills Simulator gives people the chance to 'test drive' their skills in all types of driving situations, which we hope will prepare them for driving on the real--not virtual--road," said Progressive product manager Mike Storbeck from the company's headquarters in Mayfield, Ohio. "Our objective has always been to redefine drivers education and provide a practical training program that gives people a chance to test, and practice, their skills in a safe, simulated environment," said Tim Albright, president of Metro City Group, owner of The Simulator. "We are looking forward to working with Progressive, and are sure that, together, we can make our roads safer and more enjoyable for everyone." Over the next several months, the Progressive Driving Skills Simulator will travel to many local events in the Western United States, including Motor Trend Auto Shows, state fairs and other automotive industry-related events. More information is available at www.progressive.com or www.streetsimulator.com. Source: Progressive Group of Insurance Cos.

Washington – Thanks in part to technology that automates the credit-verification process within 48 hours, an unlikely contender is entering the mortgage lending business. A division of Citigroup Inc. is piloting a program to offer mortgages to Washington-area residents with "limited credit histories" who "therefore often end up with high-cost or risky home loans." Setting aside $200 million for the program, the division, CitiMortgage, has partnered with Fannie Mae, Washington, D.C. and State Farm Mutual Automobile Insurance Co., Bloomington, Ill., which together agreed to buy $100 million worth of the loans. To qualify for the program, a person must be in the country legally and have alternate credit lines, such as rental payments, utility bills or a tithing record, that a lender can use to evaluate creditworthiness. Historically, gathering the paperwork to confirm these trade lines has been a laborious process that could take months, which often discouraged potential buyers and hurt their chances of closing a deal, reports The Washington Post. Neighborhood Housing Services, a sister organization of Washington, D.C.-based housing advocacy group NeighborWorks America, will use a system that automates the credit verification process and delivers results to CitiMortgage within 48 hours. The technology evaluates whatever information is available at the national credit bureaus as well as from other sources. To participate in the mortgage program, called R-Home, potential borrowers will first go through credit counseling. One of two District-based nonprofit groups, HomeFree-USA or Manna Mortgage, will work with potential borrowers, vet their qualifications and match them with a loan. If the best loan is with CitiMortgage, then CitiMortgage will fund that loan and sell it to Neighborhood Housing Services, reports the Post. The nonprofit group will then sell the loans to State Farm and Fannie Mae. Sources: The Washington Post, American Banker

Philadelphia - For nearly two decades, consulting firms, technology companies, R&D-driven corporations and other knowledge-intensive organizations have made significant investments in "knowledge management" initiatives. These initiatives are intended to facilitate the capture and transfer of company expertise as a way to spur learning and innovation.But research by Wharton management professor Martine Haas and Morten Hansen, professor of entrepreneurship at INSEAD, indicates that knowledge sharing efforts often fail to result in improved task outcomes inside organizations—and may even hurt project performance. However, organizations that plan carefully before launching a knowledge-sharing initiative, and support these efforts along the way, have a much better chance of adding value, the researchers say.

Washington - A notice published in the Federal Register seeking comments for a broad Treasury Department review of financial regulation is biased in favor of federal regulation of insurance and foreign business entities, according to the Alexandria, Va.-based National Association of Professional Insurance Agents (PIA).The specifics of the Nov. 11, 2007 published notice "raise critical concerns about the direction, purpose and intent of the review process itself, concerns we are compelled to address directly to you at this time," states PIA in a letter to Treasury Secretary Henry Paulson.

New York — Richard Mucci will join New York Life International, New York Life Insurance Co.'s overseas arm with operations in eight markets, as chairman and chief executive officer of International on Oct. 8, 2007. He succeeds Joseph Gilmour, who decided to leave the company.

New York — Switzerland-based Zurich Financial Services Group named Kevin Dunham as senior vice president and global relationship leader for the Western region of its Global Corporate in North America business unit. Dunham is based in Glendale, Calif., and will manage accounts primarily in the Southwest and Western United States."Kevin's range and depth of experience in all aspects of customer service and relationship management, specifically in this region, make him an ideal candidate for this role," says Mario Vitale, CEO of Zurich Global Corporate in North America. "His focus will be on developing and expanding relationships with our brokers and customers in order to provide them with a differentiated experience, and to deliver Zurich products and services."

New York - New York Life Insurance Co. announced that Craig Merdian has joined New York Life International (NYLI) as executive vice president and chief financial officer. Meridian reports to Chairman and Chief Executive Officer of New York Life International Joseph Gilmour.In his new role, Merdian is responsible for managing several core functional areas, including all financial, accounting, investment and actuarial matters for NYLI. Additionally, he is a member of NYLI's Senior Leadership Team, which is responsible for establishing management policies in all areas of the NYLI's business and affairs.

Stamford, Conn.—A recent release from Pitney Bowes Inc. announced its Pitney Bowes Group 1 Software and Pitney Bowes MapInfo business units, acquired separately, will combine into a single software company. The move is effective immediately, and the businesses will merge operations over the next several months.

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.

Smithtown, N.Y. — Bank of Smithtown Insurance Agents & Brokers Inc., a wholly-owned subsidiary of Bank of Smithtown, acquired all assets of Payne & Palmieri Inc., an independent insurance agency located in East Setauket, N.Y.

Los Angeles - Farmers Insurance Group of Companies appointed Keitha Schofield, president and chief operating officer of Farmers Services, a new support services entity which will include finance, audit, human resources, communications, procurement, real estate, service point/service centers and information technology. She also serves on the Farmers Group, Inc. board of directors. Schofield joined Farmers in 1995 as senior vice president and CIO and until this recent appointment served as executive vice president—support services.

New York - New York Life Insurance Co. promoted Alexander Burbatsky to senior vice president in the corporate information department--giving him responsibility for all aspects of delivery of infrastructure services.

Toronto — Camilion Solutions Inc., a Markham, Ontario-based provider of product development solutions and next-generation policy administration systems to the insurance industry, announced that accelerated business growth has necessitated a relocation of their corporate headquarters to a facility twice the size of their previous location.