Security risk

ISO, a provider of anti-fraud and personal injury claims solutions, has identified ten key factors that can help insurers reduce the rising costs of handling personal injury claims.

NEEDHAM, MA--New challenges in the US insurance industry are creating one of its most difficult operating environments in recent memory. In the context of such divergent issues as terrorist threats, state and federal regulatory activity, competition from other financial services players and tight global economic conditions, TowerGroup forecasts a cautious approach to technology spending by US insurers in 2005.

Over the years, a number of oxymora have established their place among the most popular in the American lexicon-among them "airline food," "jumbo shrimp" and "working vacation."These terms are all regarded seemingly as incongruous or contradictory. So is "business intelligence"--at least in the manner that it relates to the insurance industry.

The Texas Department of Insurance is the latest organization to enter the controversial arena of scrutinizing the use of credit scores by insurance companies. Many insurers use the scores to assess risk when underwriting auto and homeowners policies.In December, the department released its preliminary findings to the 79th Texas Legislature. And, because this study is the first of its kind to use actual policyholder data-as well as to undergo academic peer review-industry sources expect it may help to settle a contentious public policy debate.

Independent insurance agents have built their reputations serving customers, but now they're being asked to not only serve customers, but to protect their personal information.As individuals become increasingly vigilant about the privacy and security of their health and personal information, the onus has fallen on independent agents and brokers to safeguard this information, according to a new report by Agents Council for Technology (ACT).

The dynamics of marketing and selling insurance are rapidly changing. Savvy Generation X members who use the Web to comparison shop for insurance typically have different insurance providers for their auto, life and home. Baby boomers question how much insurance is too much.Given the diversity of today's insurance market, how do you reach your target customers? What do you do to stay ahead of the competition and secure long-term clients for all of your lines of business?

Challenging market conditions, led by accelerating price competition, are causing insurers to look more closely at streamlining their underwriting procedures to defend or improve their profitability. Inevitably, this is creating a new focus by senior executives on data, technology and process management.Although underwriting is a basic building block of the insurance process, traditional methods often are slow, inefficient, inconsistent and inaccurate.

Jersey City, N.J.--Reducing underwriting costs through technology is a key goal for insurance organizations in 2005, according to analysis undertaken by Jersey City, N.J.-based ISO.

Tempe, Ariz.-The Progressive Group of Cos. is opening what it believes to be the only insurance group-owned commercial auto claims training facility in the U.S.

SAN FRANCISCO--A new study that details due diligence considerations for institutions seeking an identity theft solution provider has been released by Identity Theft 911, the nation's recognized leader in identity theft resolution, defense, and education. The study examines issues that are too often overlooked by financial institutions, insurance firms, and other organizations as they sift through the diverse offerings that have emerged in response to the identity theft crisis.

JERSEY CITY, N.J.--ISO has acquired AppIntelligence, a provider of Web-based analytic tools designed to identify and detect fraud in the residential mortgage industry. More than 600 customers of the Weldon Spring, Mo.-based company use AppIntelligence solutions in the prequalification, processing, underwriting, quality control/quality assurance and compliance phases of the mortgage-lending process. Customers will not experience any service disruption from the transfer of AppIntelligence's control, both companies stressed. Terms were not disclosed.

EL SEGUNDO, Calif.--Computer Sciences Corporation today announced that five U.S. healthcare consulting organizations have licensed the Johns Hopkins Adjusted Clinical Groups Predictive Model (ACG-PM) software. Encompass Medical Management, Salem Health Solutions, Wakely Consulting Group and two other providers of healthcare management services will use ACG-PM to improve the performance of health plans offered by their employer-group clients.

Addison, TX--Universal Conversion Technologies (UCT), a provider of insurance industry data conversion solutions, today announced it has been selected by CUNA Mutual Group to assist with CUNA Mutual's data conversion project. The conversion involves the migration from two legacy policy administration systems to an existing system used by CUNA Mutual to support its current and future operations. In addition to their proven conversion software, UCT will provide expert conversion services.

Fireman's Fund Insurance Co. has signed a five-year, $42 million contract with AT&T to develop a secure, high-speed, integrated network. AT&T's design and management of an Internet Protocol Virtual Private Network (IP VPN) will provide 4,500 employees in 60 FFIC locations across the U.S. with faster access to data on premiums, claims, insurance quotes and other critical customer information.

NEW YORK--The Guardian Life Insurance Company of America (Guardian) today announced a major expansion of its group small business distribution capabilities. In 2005, Guardian will open dedicated Small Group Sales (SGS) counterparts for each of its Regional Group Offices (RGO) nationwide.

JUPITER, Fla.--With the economy continuing to strengthen, the number of insurance companies that failed in 2004 declined 48 percent, to 13 compared to 25 insurer insolvencies in 2003, according to Weiss Ratings, Inc., the nation's leading independent provider of ratings and analyses of financial services companies, mutual funds, and stocks. Three life and health insurers and 10 property and casualty insurers failed in 2003, compared to four and 21 respective failures in 2003.

WASHINGTON, D.C.--With the start of a new Congress and state legislative sessions, the Independent Insurance Agents and Brokers of America is announcing its legislative agenda for 2005. Top issues for the nation's largest insurance association this year will include the following items:

NEW YORK--Reserve deficiencies, which have plagued property-casualty insurers in recent years, improved dramatically in 2003, according to a new study by Conning Research & Consulting.

Washington, D.C. --The American Council of Life Insurers (ACLI) issued today its 2005 Bank Insurance Study titled, "Catalyst for Change: Next Steps in Bridging the Cultural Divide Between Banks and Life Insurers." The report offers specific proposals designed to support the growth of a vibrant bank insurance marketplace.

No one knows for certain what regulatory changes will result from New York Attorney General Eliot Spitzer's investigations into unethical sales practices in the insurance industry.But, at press time, state policymakers had already drafted model laws requiring additional disclosure of broker compensation. And, not surprisingly, industry representatives were pleading for prudence.