Policy adminstration

Jersey City, N.J. - ISO and claims technology provider First Notice Systems (FNS) have entered into an agreement to deliver a new first-notice-of-loss (FNOL) fraud-detection solution to the property/casualty insurance marketplace.

Warren, N.J. - Chubb Group of Insurance Companies, Warren, N.J., has released its Business Recovery Planning Guide, a CD-ROM designed to help businesses create site-specific plans. The interactive CD-ROM features revised editable questionnaires and checklists to help companies analyze their current exposures and develop a business-recovery plan.

In 16 states and the District of Columbia , independent agents and brokers now can go online and quote complex package operations (commercial property and general liability insurance combined) with the same ease as writing a Safeco businessowners policy (BOP). That's because Seattle-based Safeco has fully automated the sale of commercial insurance packages to more than 800 classes of small- and mid-sized businesses.Accounts such as manufacturers, restaurant chains and auto mechanics can be quoted online in as few as 15 minutes, with the first price being the right price, the company claims.

Boston and Bothell, Wash. - SC-integrity and Lexington Insurance Co., a member of American International Group Inc. (AIG), are working together to encourage motor carriers and shippers to reinforce their risk management activities to concentrate on the issue of cargo theft.SC-integrity, a Web-based technology and data solutions company, and Lexington believe a significant reduction in theft losses can be achieved through a combination of security driven loss prevention techniques and a new cargo theft protection device. Called SC-tracker, the state-of-the-art tracking and monitoring technology is a rechargeable, portable tracking unit that is buried within the cargo and not installed on the trailer, which allowis the cargo to be tracked from point of origin to point of destination remotely over the Web. While in transit, the tracking unit reports its location every 30 seconds for over a week. The monitoring system will immediately notify security personnel if the cargo is being stolen.

Brookfield, Wis. - Fiserv, Inc. has acquired Xcipio, Inc., a Web-based insurance rating and automation solution provider. The acquisition will allow the Brookfield, Wis., company to provide Web-based comparative insurance rates directly from insurance carriers to producers in real time. Details of the transaction, which closed November 1, were not disclosed.

El Segundo, Calif. -- Computer Sciences Corp. has been awarded a contract by the Federal Emergency Management Agency (FEMA), a branch of the Department of Homeland Security, to continue supporting the U.S. federal government's National Flood Insurance Program (NFIP). CSC estimates the value of the contract, which has a three-month base period and two one-year options, to be approximately $35 million if all options are exercised.This new agreement follows and is incremental to a contract signed with FEMA in 1999 under which CSC provides training, consultation and analytical support services.

McClean, Va. -- Insurance companies that have not already implemented business process automation technology, including straight-through processing, integrated client information systems and service-oriented architecture (SOA) for customer service and administration functions, can improve efficiency by doing so. That's according to a report, titled "How To Create A Platform for the 21st Century Insurance Firm," released by BearingPoint Inc. a global management and technology consulting firm.In fact, the resulting increase in efficiency and productivity can mean greater capacity and as much as 30% costs savings contributing to overall better profitability, according to BearingPoint.

The market for insurance in China is huge. With a population of 1.3 billion-that's 20% of the people in the entire world - China's insurance premiums are projected to grow from $60 billion this year to $100 billion by 2009 (see "Chinese Insurance Premiums," page 13).That's because between 1949-when the People's Republic of China was established-and the 1980s-when Deng Xiaoping opened the market to private insurers, there was no insurance industry in China. The government took care of the people, from the "cradle to the grave."

For many years, building computer software applications was the modus operandi in the insurance industry. "No one knows our business," was the common refrain.Since then, software vendors customized their products for the industry, and buying prepackaged software applications has become the preference.

All this talk about merging business goals with IT seems to have reared its ugly head. With the best possible intentions and following the ultimate in best practice methodology, insurance CIOs are trying to make the marriage work. Is their time and effort well placed? Are they being successful?Not according to a recent report issued by Aberdeen Group, a Boston-based research firm, which cites the two most powerful "disruptors" to the CIO's mandate for 2005: the need to provide better solutions in a business environment of growing risk and uncertainty, and changes in the technology landscape.

With new research from the Insurance Institute for Highway Safety, Arlington, Va., finding that drivers using cell phones are four times more likely to get in a crash serious enough to injure themselves, auto insurers are beginning to educate drivers about the risks of driving while talking on cell phones.Dan Cohen, a spokesperson for 21st Century Insurance Group, says the study underscores the need for insurance companies to encourage their clients not to drive and call at the same time.

Contrary to public opinion, the IT department typically can't foretell the future. IT teams usually can analyze the effectiveness of an existing systems implementation, but for some, rather than using a crystal ball, it's more a matter of acknowledging what works and what doesn't.Thanks to growing requirements and a fundamental technology shift, an insurance consortium faced such a challenge when the implementation of a policy administration system dragged on for years.

Offloading non-core functions to an outsourcer, and thereby relieving your company of the responsibility of maintaining expensive equipment and escalating personnel costs, is increasingly seen as not only a viable option but in many cases the best or most logical way to go.The Robert Plan Corp. (RPC), an auto insurance carrier and underwriter specializing in urban automotive markets, was facing such a choice several years ago.

Seattle - PEMCO Insurance, provider of auto, home, boat, life, and umbrella insurance to Washington state residents, has launched a teen drivers Web site designed to educate parents, teachers, and teens about the dangers young drivers face. The Web site can be found at http://www.pemco.com/teen_driver/index.asp."Teens have the highest car-crash death rate of any age group," says PEMCO spokesperson Jon Osterberg. "The main reason is, they're inexperienced drivers, and only experience can sharpen their skills. PEMCO wants to help teens grow into experienced, safe drivers."

Santa Ana, Calif. - The principal subsidiary of The First American Corp.--First American Title Insurance Co.--has formed a strategic alliance with Microsoft Corp., Redmond, Wash., for early testing of Microsoft SQL Server 2005 using First American's FAST Transaction System (FAST) database.FAST is an integrated title and escrow system that unifies disparate systems into a centralized database and is currently one of the largest SQL Server 2005 implementations with more than 4 terabytes of data. Microsoft encouraged First American's FAST development team to test SQL Server 2005 against one of the largest and most complex databases available. Using a version of FAST with all personal information removed, Microsoft was able to validate SQL Server 2005 and improve system capabilities, ensuring that the new release of SQL Server will be "FAST Certified" at the product launch on Nov. 7, 2005.

Chapel Hill - Blue Cross and Blue Shield of North Carolina (BCBSNC) has made its eInfoNOW tool available to all local and national self-insured employer groups. eInfoNOW(SM) is an online reporting tool that enables employer groups to track claims utilization data and to perform data analysis.Having this capability enables BCBSNC and the employer to tailor insurance plans to meet the specific health needs of each employer group, according to John Friesen, BCBSNC's vice president and chief actuary of Actuarial and Underwriting.

Palos Hills, Ill. - A special online database consisting of motor vehicles and boats affected by Hurricanes Katrina and Rita is being made available to the public, the National Insurance Crime Bureau (NICB), Palos Hills, Ill., reported today.

New York, N.Y. - Commercial insurance premiums took a sharp downward turn in the third quarter, according to the Risk and Insurance Management Society, Inc. (RIMS) Benchmark Survey, which targets current policy renewal prices as reported by corporate risk managers.

Hartford, Conn. - On Oct. 22, The Hartford Financial Services Group Inc. will unveil Select Customized Pricing, a predictive underwriting model designed to bring agents a highly refined policy price at the beginning of the submission process for its Spectrum business owners' policy, commercial auto, and workers' compensation insurance."We've turned a multi-step process into a single step for agents by pulling in several unique business characteristics upfront and using the results to differentiate one business customer from another," says Jim Ruel, senior vice president of Small Commercial business at The Hartford.

Greenwood Village, Colo. - Great-West Healthcare, a division of Great-West Life & Annuity Insurance Co., is launching a pilot program with E-Duction Inc., a Philadelphia-based provider of payroll deduction solutions, to issue the CLEAR Card, a payroll deduction credit card for employers with consumer-driven or other high-deductible health care plans.The CLEAR Card, which is processed like any other credit, debit or check card, is a tool designed to help members pay out-of-pocket health care expenses. The pilot program will be rolled out this month to various clients nationwide.