Policy adminstration

Framingham, Mass. - Companies ranging from regionals to multinationals will spend 2006 wringing more efficiency from their data storage infrastructures and holding down costs through information lifecycle management (ILM) rather than improving security, according to the "2006 Storage Budget Survey" released by GlassHouse Technologies, a provider of enterprise storages services.Despite a rash of high-profile security failures in 2005, nearly 100 companies in every size category--with storage budgets from less than $10 million to $150 million and above --ranked improving their storage infrastructure usage as either their first or second concern.

Pittsburgh - A full 90% of carriers have adopted some form of Web Services within their information technology architecture, and 58% of those have adopted the industry-specific ACORD (Association for Cooperative Operations Research and Development) XML standards as part of their Web Services initiatives.These are the results of a recent survey of top insurance carriers conducted by SEEC Inc., a provider of business component software for the insurance and financial services industries.

Cleveland - Medical Mutual of Ohio's financial investigations unit reclaimed $5.4 million in fraudulent claims in 2005, the largest amount in company history.Calling it perhaps the costliest of all crimes, the National Health Care Anti-Fraud Association (NHCAA) estimates more than $100 million is lost each and every day to health insurance fraud.

Framingham, Mass. - A recent survey of 802 consumers carrying health insurance, conducted by IDC's Health Industry Insights, reveals one in three respondents (33%) cite medical information being made accessible on the Internet as a primary reason for feeling less comfortable about sharing information with primary care physicians (PCPs).Nearly half of respondents (47%) who are uncomfortable sharing information with PCPs also indicated "wanting control over who accesses their personal health information" as a reason, while 14% do not trust the health plan to adequately protect personal health information.

Columbus, Ohio - Customers of Nationwide can now monitor their damaged vehicle repairs online through Nationwide AutoWatch--an Internet-based software tool. AutoWatch is currently being piloted in multiple states and may be rolled out as an optional service in the coming months."The Web site enables customers to log on 24 hours, 7 days a week, 365 days a year to monitor their vehicle at different points during the repair process at participating Nationwide/Allied Insurance Blue Ribbon Repair Shops," says Terry Fortner, Nationwide associate vice president of claims.

Chicago - InsuranceNoodle Inc. has received U.S. Patent Office notification that the patent application claims relating to innovations for its "Methods and Apparatus for Selecting an Insurance Carrier for an Online Insurance Policy Purchase" have been allowed for issuance within the next few months."We are extremely excited the Patent Office has made this decision after four years of extensive application review," says InsuranceNoodle CEO Kathryn Emmerson. "This approval--as well as the fact that more than 2,500 agencies across the country are active NoodleNetwork partners--supports and validates our proprietary, Web-based technology platform and its capability to provide fast, efficient online quoting from multiple carriers for a variety of commercial products."

Washington, D.C. - The Federal Emergency Management Association's National Flood Insurance Program has launched a Web site to provide educational materials and other new content to insurance agents.

London -- Companies that outsource their IT systems are increasing their potential vulnerability to security breaches causing possible long term damage to their business, according to London-based insurer ACE European Group Ltd. (ACE).ACE has uncovered a lack of awareness among many European businesses of the increasing risks that outsourcing poses to their networks. ACE is also aware that there is a degree of uncertainty among many businesses, both as to the level of protection given to their computer systems and the cover provided by their existing insurance policies.

Cupertino, Calif. - Software security provider Symantec announced today that it completed its acquisition of Houston-based BindView Development Corp., a provider of agent-less IT security compliance software.

Hartford, Conn. - The dominant position of large market leaders, the effects of burgeoning technology and a robust, competitive pricing environment will cause dozens of insurers to exit the personal P & C industry over the next few years, according to a new study by Conning Research and Consulting Inc., a Hartford, Conn. provider of public and proprietary research as well as consulting services to the financial services industry.

Stamford, Conn.- Following a period of cost cutting and reactive spending, insurance organizations with more than $1 billion in revenue will be even more cautious when making their IT spending decisions in 2006, according to Gartner Consulting's Worldwide IT Benchmark Service.

Indianapolis - At least six states are likely to advance rate modernization initiatives this year, a legislative preview prepared by the National Association of Mutual Insurance Companies (NAMIC) reveals.

This year may be the year of consolidation and legacy renewal when it comes to insurance carriers' IT spending, according to industry analysts. And IT budgets will increase slightly over 2005, although there may be trimming back in some areas.The wild card will be the impact caused by Katrina and other hurricanes that wrought such devastation in New Orleans, Florida and other locales in the Southeast.

Listening to an insurance executive talk about replacing an old mainframe-based administration system is a lot like listening to a farmer talk about getting rid of an old tractor.It still pulls a heavy load, but competing farms-especially the larger ones-are bringing in faster models with advanced features that enable them to produce higher yields more efficiently. But these new tractors cost a lot of money and change the way work is done on the farm. How can a farmer afford the new equipment, learn how to use it, modify the work processes, and get all the crops sown and harvested on nature's strict schedule?

In our conservative, risk-based marketplace, change is often described as an oxymoron. But thanks to free enterprise, keeping up with change is not only necessary, it's critical to your success. Perhaps the greatest change has taken place in technology, not only because of automation and the Internet, but because it's finally being recognized for what it is: a critical ingredient to successful business operations.Perhaps Mike Byam put it best during a recent Insurance Networking News Virtual Trade Show session. The vice president of e-business & technology transformation at The Hartford's Financial Services Group said: "The line is becoming blurred between IT and the business. At some point, IT won't be the focus of the discussion. The focus will be one of several elements comprising successful business strategies."

Over the past two years, many carriers, either to their dismay or bewilderment, saw key software vendors fall under new ownership. And it hasn't been simply a case of small fish being eaten by larger fish. Some of the largest names in the software business have been caught in the net. PeopleSoft and Siebel Systems, giants in their markets, for instance, were scooped up in acquisitions.Mergers and acquisitions are always sprung on the market by surprise, and it's difficult to predict or sense when a change in ownership may be pending. What's certain is that such market moves can disrupt even the most meticulously laid plans of IT executives.

Five years ago, when Los Angeles-based Farmers Insurance Group introduced its first agent portal, the carrier believed it was on to something. As a communication vehicle, the portal pushed one-way information in "wallpaper" fashion to its captive and independent agents in 41 states.By 2003, the nation's third-largest provider of personal lines property and casualty insurance provided its agents with simple transactional capabilities by hooking its mainframe to IBM Websphere's "e-agent platform" front end.

ISMIE Mutual Insurance Co., a Chicago-based medical liability insurer, has partnered with The Sullivan Group (TSG), Oakbrook Terrace, Ill., to provide its more than 12,000 insured physicians with access to Web-based risk and patient safety education courses. ISMIE Mutual physicians will have access to TSG's 'failure to diagnose' curriculum, which was designed to help doctors make diagnoses they may miss. Based on analysis of frequently occurring errors, TSG has been able to tailor its curriculum to focus on the highest-impact content and the most critical topics.

After an agency selection process that spanned several months, the National Association of Insurance Commissioners, Kansas City, Mo., has selected New York-based CooperKatz & Co. to promote a national public education program focused on teaching consumers how to select the right type of insurance coverage to fit their needs and how to protect themselves from buying worthless policies from fake insurance companies. In September, the NAIC launched an online fraud reporting system, where insurance companies and consumers can report suspected insurance fraud.

Brookfield, Wis.-based Fiserv Inc. has acquired Xcipio Inc., an East Windsor, Conn.-based Web-based insurance rating and automation solution provider. The acquisition is part of Fiserv's plan to expand its technological footprint in the insurance industry.