Security risk

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.

The carrier's new rating system for personal lines enables Balboa to process new applications quickly, due in part to the solution's Extensible Markup Language (XML) architecture.For almost 30 years, Balboa Life and Casualty Co. provided lender-placed insurance solutions to financial institutions. However, to become a leading player in both the consumer and financial institution spheres, the insurance carrier has begun focusing on introducing growth-oriented personal insurance products, such as homeowners insurance.

Like most large U.S. insurance carriers with aging technology platforms, CNA Financial Corp. was faced with a critical decision: How to modernize a legacy claims system to meet 21st century business requirements. And like other insurers, the Chicago-based commercial carrier is banking on technology that integrates multiple disparate systems, streamlines adjuster workflow, provides more timely management information, and reduces claims and IT costs.

ATLANTA--COUNTRY Insurance & Financial Services of Bloomington, Ill. announced today the closing of two transactions with Cotton States Insurance Group of Atlanta. Under the first transaction, Cotton States Life Insurance Company merged with a subsidiary of COUNTRY Life Insurance Company. In the second transaction, Cotton States Mutual Insurance Company pooled premiums and losses with those of the COUNTRY property/casualty group.

When it comes to IT spending this year in the insurance industry, it's déjà vu all over again. In general, industry analysts concur that U.S. insurance companies will increase IT spending only slightly this year-between 1% and 4%. Last year, they predicted cautious increases of 2.5% all the way up to 6.7%.Similarly, carriers' priorities for IT spending in 2005 will focus on projects that ranked high on the list last year as well. Namely, their attention will focus on IT projects with the potential to increase revenues by improving distribution and customer service, and those that cut costs by streamlining business processes and workflow. Also like last year, insurance executives remain resolute about making sure their technology investments align with business strategy. IT governance is key.

The challenges insurers face with handling paper documents have been well documented. Dealing with reams of paper is one thing. Coping within a manual and de-centralized content management scheme is another.The process of printing and mailing policies is both cumbersome and costly, as is storing policies in archived files. For some, retrieving older, existing policies is akin to finding a needle in a haystack.

The NAIC has adopted model legislation that would implement new disclosure requirements designed to ensure consumers are provided the information necessary to understand the manner in which brokers are compensated for the sale of insurance products. The model legislation amends the NAIC's current Producer Licensing Model Act and is a key component of an aggressive initiative by state insurance regulators to address issues surrounding the use of compensation arrangements by insurance brokers.

INDIANAPOLIS--Anthem Blue Cross and Blue Shield customers can now enroll in their health care benefits through secure, online tools available at http://anthem.com . The new capabilities not only make enrolling fast and easy for employees and individuals, but allow employers to streamline their work, lower administrative costs, and save time, all in an effort to improve the ease of working with Anthem.

HARTFORD, Conn.--The Hartford Steam Boiler Inspection and Insurance Company (HSB) today announced it is offering to insurers identity recovery coverage that combines identity theft insurance with services that help victims restore their credit history and identity records.

COLUMBIA, S.C.--Following a new study by the Insurance Research Council (IRC) which found that auto injury claims in four No Fault states have escalated at dramatically different rates, ISO has identified three key areas where software can help reduce the dramatic rise in No Fault auto insurance claims costs.

PEARL RIVER, NY--ACORD was presented with the prestigious Innovation of the Year Award at the 2004 Insurance Day Awards in London on December 1. ACORD President and CEO, Gregory A. Maciag, accepted the award on behalf of ACORD's more than 480 members worldwide.