Policy adminstration

AGENTS AND BROKERS ADOPT NEW RPOST E-MAIL SERVICELos Angeles-based RPost U.S. Inc. says independent insurance agencies and brokerages are adopting RPost as a service platform for outbound e-mail. Confronted with errors and omissions (E&O) liability exposures, agents and brokers need technology that enables them to optimize electronic communications while minimizing risk. By shoring up the security gap, RPost Registered E-Mail messages offer speed, security, accountability and personal liability protection in a cost-effective solution that can be used for an average cost of 59 cents per message. The company's services provide the e-mail sender with legally valid evidence of what e-mail content and attachments were sent and received, by whom and when.

How is 2007 shaping up for the insurance industry, and what lies ahead? Insurance Networking News asked Mark Gorman, strategic research advisor, insurance, for Needham, Mass.-based TowerGroup Inc.INN: Do some insurers fear being left behind by competitors this year?

Motorists Insurance Group found some help with debris removal-literally and figuratively. As a result, the Columbus, Ohio-based life, auto, property and casualty company has prevented the loss of millions of dollars in overpaid claims while creating a confident, upbeat crew of adjusters.It all began four years ago, when Motorists executives sat down for a presentation by Marshall & Swift/Boeckh (MSB), an MDA company with offices in New Berlin, Wis., and other North American cities. At the time, MSB had been providing Motorists with software for estimating property claims for about four years but was just launching an analytics consulting service to help carriers understand how claims are really paid.

Not so long ago, discussions of IT security tended to focus on the need to install firewalls; to tunnel via private networks; to employ encryption keys and digital certificates; to surround servers with multiple layers of access; and to install firewalls, sandboxes and "demilitarized zones" to snag hackers.Those tools and methods remain critical, but many in the IT community are recognizing the importance of addressing physical as well as digital vulnerabilities.

MASSMUTUAL UPGRADES PRODUCT MACHINE SOFTWAREThe disability income insurance area of Massachusetts Mutual Life Insurance Co. (MassMutual), Springfield, Mass., upgraded to version 3.1 of Product Machine, a set of tools designed to enable users to build, design and publish products.

Hartford, Conn. - The surety business has recovered from a slump that began with the 2001 recession, according to a new study by Conning Research and Consulting Inc. "The combined ratio climbed more than 40 points and stayed there for the next three years," says Mark Jablonowski, an analyst at Conning, which has headquarters in Hartford. "While the recession and tightening credit resulted in skyrocketing losses, the property-casualty underwriting cycle also contributed to the problem." Those views are examined in a study called "The Surety Market: Taking Care of Business." It's Conning's first analysis of the surety segment, a business the company says has iinfluence well beyond its size because of its importance to construction and regulatory compliance. According to the study, a huge increase in losses during the 2001 to 2003 period wasn't just from claims reported but also from claims that developed badly and a falloff in recoveries and other claims mitigation, says Stephan Christiansen, Conning director of research. The situation turned round in 2004 and 2005, Christiansen observes, adding that 2006 showed continued improvement and the future looks good, too. Capacity is returning to the market but with a renewed appreciation for underwriting discipline, says Christiansen. "That new-found discipline, along with attention to automation and technology [that is]driving cost control," he says, "lead us to a positive forecast for the surety line over the next few years, with premium growing at least as fast as GDP." Source: Conning Research and Consulting Inc.

Washington - America's Health Insurance Plans (AHIP) has collaborated with The Centers for Disease Control and Prevention (CDC) to develop a checklist insurers can use to prepare contingency plans for a flu pandemic.

Rochester, N.Y. – Many Americans are satisfied with how their personal health information is used, but a substantial number express reservations about the confidentiality and security of their health data, a new survey shows.

Washington, D.C. – America needs a public-private partnership to protect families from a devastating, massive hurricane or earthquake, the head of a coalition that includes insurers said in testimony this week before Congress. Such catastrophes have dulled the industry’s appetite for insuring against such events, said another witness, a representative of an agents’ and brokers’ association.

Washington - The National Association of Professional Insurance Agents (PIA) has asked its members to challenge the U.S. Chamber of Commerce’s recent endorsement of optional federal charters for insurers.

Phoenix, Ariz. - Insurance industry groups have banded together to create eight data initiatives and a central data repository to combat fraud, according to the keynote speaker at an industrywide meeting here of property/casualty claims and special investigations executives.

BELLEVUE, Wash. - Symetra Financial has appointed Tommie Brooks as vice president and chief actuary. He will assume leadership of the Actuarial Division from Margaret Meister, who is relinquishing the post but continues to serve as executive vice president and chief financial officer.

Unitrin Direct insurance cos., subsidiaries of Chicago-based Unitrin Inc., are offering a $50 discount in 17 states for customers who use Esignature, an service that lets customers sign policy documents online."One of our main goals at Unitrin Direct is to continually seek new ways to provide a terrific value on outstanding car insurance coverage," says Unitrin Direct President Scott Carter. "With Esignature, consumers not only save money instantly, they do it with the knowledge that they have a trusted company behind them that prioritizes customer service."

Branchville, N.J. – Selective Insurance Co. of America, a Branchville, N.J.-based subsidiary of Selective Insurance Group Inc., appointed three information technology services (ITS) managers.

Johannesburg, South Africa – Insurers looking to enhance their contact centers may want to consider convergence, primarily driven by the increased acceptance of internet protocol (IP) and improved reliability, scalability and proven benefits that come with maturing product sets. According to the latest findings in Dimension Data plc's "Global Contact Centre Benchmarking Report 2007," more than 60% of contact centers—representing a number of industries across 42 countries and five continents—have introduced IP-based or hybrid IP private branch exchange (PBX)/automatic call distribution systems (ACD), which is an increase from the 50% recorded last year.

London - Senior executives and risk professionals consider data loss the most significant threat and key issue to address in operational risk management planning, according to a global risk briefing report conducted by the Economist Intelligence Unit (EIU) and sponsored by London-based ACE European Group Ltd. (ACE).More than 40% of the 181 respondents said their organization focuses more on loss of data than other issues—including systems failure, human error and even natural disasters.

New York and Cupertino, Calif. - Last week brought yet another security scare to a health insurer. Empire Blue Cross Blue Shield, a New York-based subsidiary of WellPoint Inc., reported that Magellan Behavioral Health Services located a CD sent via UPS by Health Data Management Solutions (HDMS), a third party vendor to Magellan, an Empire benefit program administrator, that included some members' personal health information. The CD was lost in transit but was located. The insurer reports that although there was no indication that the CD had been stolen, last week Empire sent a letter to inform affected groups and members who may have been impacted.

Chicago - Aon Corp., Chicago, completed its acquisition of Valley Oak Systems, San Ramon, Calif. The terms of the transaction were not disclosed.

New York - Most corporate board members talk the talk about the importance of information technology to their company, but fewer are taking actions to align IT with overall corporate strategy. This is the overarching message coming out of a new survey, "The Board and Information Technology Strategies," by Deloitte Consulting LLP, a subsidiary of Deloitte & Touche USA LLP, a New York professional services provider, and Corporate Board Member magazine. The survey respondents also suggested a distinct and positive correlation between the attention paid to IT and corporate performance. The survey was conducted in the fall of 2006 and involved more than 450 directors of publicly traded companies with revenues of more than $1 billion. Financial services companies represented 19% of the mix, 7% in insurance. The directors responded to questions ranging from how often their boards discuss IT strategy to how they think IT has affected their companies' ability to effectively meet their business objectives. A significant gap does exist between the emphasis the board seems to place on IT and the things they are doing to address it, Larry Danielson, a principal with Deloitte Consulting who focuses primarily on the insurance industry, told Insurance Networking News. "This indicative of an insurance company board's comfort zone," says Danielson. "Boards are seasoned individuals who are asked to apply judgment on many different topics. In this regard, technology is a misnomer, because it's often thought of in the highly technical arena of software and hardware, when it's really about overall strategy, business change and improvement." According to the Deloitte & Touche report, directors and senior executives blame this gap on the number of other things that have been hitting the insurance company board's agenda, namely regulatory compliance and top line growth. "Top line growth varies by segment," says Danielson, "but clearly the life area faces some hurdles. With the influx of Baby Boomers seeking better retirement returns, life insurers are struggling with what to do, because their infrastructures are not designed in similar fashion to a typical investment firm. An investment company's business model is such that they can see every day where they stand financially." Some of the key findings and trends from the survey include: * Boards are not involved to the degree they believe they should be in IT; directors did not indicate a commensurate level of activity with the level of recognition of IT's importance.* Ten percent of boards relegate IT matters to a board committee. * Only 11% of boards discuss IT at every meeting. * Fourteen percent of boards are "completely and actively involved" in IT strategy. * Directors who report a higher level of involvement in IT matters have a better understanding of IT's importance to their business and their performance. * Directors report that effectiveness in executing on IT strategy correlates to better financial performance. Furthermore, the survey found that even though 22% of the respondents blame various aspects of IT strategy for their companies' inability to achieve its goals, 52% say their board will be spending no more time on IT over the next three years than it does now. The findings also indicated that when the CEO leads the discussion, boards are more completely and actively involved in IT. "In the not so distant old days, technology was more of a support system than an actual business strategy. Today technology and IT are key business strategies and typically are accompanied by capital budgets reaching as high as a billion dollars in larger companies," said TK Kerstetter, president and CEO of Corporate Board Member, a Brentwood, Tenn. publisher. "The days of not understanding IT in the boardroom are gone, and I expect we will see more CIOs and CTOs invited to serve as board members in the years ahead." According to Danielson, this may not be the ultimate solution for insurance companies, but it's a start. "It's important to get senior people to talk about technology," he says, "and as an adjunct, board members need to be better educated. They need a better understanding on lead-time for IT project completion, potential technology pitfalls and ultimate benefits. It's really about managing expectations upward." Source: Deloitte & Touche USA LLP

Dublin - Research and Markets, a Dublin research firm, released a new offering, “The Life Insurance Carriers Industry Report,” the company reports. The report includes 2007 and 2008 forecast estimates on the size of the industry (sales, establishments, employment) for the 47 largest world countries. The report also includes industry definition, 5-year historical trends on industry sales, establishments and employment and estimates on up to 10 sub-industries, including fraternal life insurance organizations, mutual association life insurance, and life insurance agents.