Security risk

The number of career agents-the largest distribution channel for life insurance-dropped significantly in a decade, down from 238,000 in 1990 to 178,000 in 2000. In addition, by 2010, 13.2% of the U.S. population will be 65 or older.These demographics present life insurers with product, distribution and operational challenges as fewer agents are available to sell new-sometimes complex-products to consumers who are planning for their retirement years.

Many corporations are catching flak these days for various operational inconsistencies.For instance, a recent survey indicates that companies, including insurers, have implemented seemingly effective, written IT security policies, but have not optimized these efforts by providing proper training and certification to its people.

Compromise legislation establishing a federal role in insurance regulation is likely to emerge from the House Financial Services Committee early in May. A hearing in late March yielded strong support for the measure from an industry divided on the issue.At the same time, the principles involved constitute the strongest support yet for greater uniformity in insurance regulation.

ST. PAUL, Minn. -- Through aggressive health care fraud investigations and coordination among other states' Blue Cross plans, the Blue Cross Special Investigations Unit (SIU) stopped payment on $8.7 million of suspect claims last year, reducing the impact of fraud on premiums in Minnesota.

The majority of insurance companies already maintain a rigorous corporate governance model to protect the financial interests of their policyholders and shareholders. So why does the Sarbanes-Oxley act have the industry aflutter? New research from TowerGroup, a Needham, Mass.-based research and consulting firm, finds insurers are realizing that the law can serve as a catalyst for long- term financial systems architecture strategy and process improvements."The globalization of insurance and the current complex regulatory environment necessitate a systematic, integrated approach to risk management," says Cindy Saccocia, senior analyst in the Insurance practice at TowerGroup and author of the report, titled "Sarbanes-Oxley and Insurance: Requirements, Hype, and Opportunity."

Prudential Financial Inc., Newark, N.J., has introduced an automatic, online licensing application for brokers seeking appointment to sell the company’s insurance and annuity products. The electronic data collection tool, called Online Confidential Data Sheet (CDS), was developed by BISYS Education and Licensing Services for Prudential.The Online CDS streamlines the traditional, paper-based appointment process and greatly improves brokers’ speed to market.

Risk Management Solutions Inc. (RMS), a Newark, Calif.-based provider of products and services for catastrophe risk management, has released the findings of an in-depth study that provides workers compensation, life, and health insurers with key benchmarks for the potential risk of human casualties from catastrophic events.Among other findings, the study demonstrates that while many in the insurance industry view the World Trade Center attack as a worst-case event, there are numerous natural and man-made events that could cause significantly higher casualties and associated insured losses.

In recognition of the HIPAA security rule pre-anniversary deadline that passed this month, Washington, D.C.-based nonprofit URAC released a report examining the state of preparedness in the health care industry in complying with the security rule.

HARTFORD, Conn.-- Do automatic teller machines need specialized insurance? They sure do. Recognizing that midsize banks, credit unions, investment firms and insurance companies have a range of specialized insurance needs -- from property coverage for ATMs, foreclosed buildings and repossessed automobiles, to professional liability coverage for banks, investment advisors and insurance carriers--The Hartford Financial Services Group Inc. now offers a tailored package of coverages to address the specific exposures they are most likely to face.

Homeowners rates that include a severe thunderstorm component based on sophisticated catastrophe modeling have been included as part of a rating plan subject to approval by state regulators in Florida.Florida Farm Bureau's 2003 Homeowners rate filing included a ground-breaking actuarial approach, which develops a distinct base rate for both hurricane and severe thunderstorm perils using hurricane and severe thunderstorm models from AIR Worldwide Corp. (AIR), a subsidiary of Jersey City, N.J.-based ISO. The models were also used extensively in the redefinition of territory lines and development of territory rating factors separately for each catastrophic peril.

Each year, more insurers appear to be increasing their budgets in implementing sophisticated fraud detection systems; however, the majority of these investments are centered around post-payment fraud detection rather than detecting fraud prior to claims being paid.

Los Angeles-based Marshall & Swift / Boeckh (MS/B) will be acquired by MacDonald, Dettwiler and Associates Ltd., Richmond, B.C., Canada.MDA is a global information company providing property-specific information to businesses and governments. Operating through two groups Information Products and Information Systems, MDA is active in data collection, information extraction, and information distribution.

Denver, CO--Valen Technologies, a provider of intelligent predictive analysis and decision enabling software, announced the availability of a premium modification module for its predictive underwriting software, Risk Manager. The new module develops a sophisticated, multivariate pure premium model that underwriters use on a daily basis to surcharge and discount policies more effectively.

Hartford, CT --2004-2003 mergers and acquisitions in the insurance industry reached the highest level since 1998 in dollar terms, even while the total number of transactions continued its long decline since the same year, according to a study by Conning Research & Consulting, Inc.

San Diego, CA--WorldGroup has introduced InsureWorx First Report of Injury (FROI), the latest InsureWorx On Demand Solution (ODS). The new FROI capabilities offer exceptional efficiency and customer service to the First Report of Injury process, enabling efficient and timely intervention - critically important to controlling overall costs of workplace injury claims. The company launched the solution at RIMS Annual Conference & Exhibition.

SAN DIEGO, CA---Assurex Global, the world's largest privately held risk management, commercial insurance and employee benefits broker group, is launching new software to enhance communication and information-sharing among its independent broker partners and commercial clients around the world. The software was introduced here at the Risk and Insurance Management Society's annual conference.

ChoicePoint, Alpharetta, Ga., has entered into a definitive agreement to acquire the assets of Superior Information Services LLC and Charles Jones LLC, Trenton, N.J., for a combined total purchase price of $89 million in cash. The acquisitions are scheduled to close on or before May 1, subject to customary closing conditions and regulatory approval.Superior Information is a provider of public records information for bankruptcies, civil judgments, and federal and state tax liens in the Northeast U.S. and works closely with Charles Jones in sharing data and services. Charles Jones is a leading supplier of title and property lien searches in New Jersey and has provided a variety of public record data services to title insurance companies and real estate markets since 1911. Superior Information and Charles Jones have a combined total of 300 employees.

Data standardization within the reinsurance industry comes a step closer as London-based ri3k announces a special release of its reinsurance hub. Called InSynch, it enables users to create LMP-compliant slips, and has ACORD certification for contract placement messages covering all treaty types and classes.The LMP Office has approved the ri3k contract structure, which will be used for June renewals onward for tradable electronic slips on ri3k’s system. In accordance with the LMP slip requirements, ri3k has introduced mandatory field names, separated into the correct LMP categories. These categories are risk details, subscription agreement, information and fiscal/regulatory.

Reactivity, a Belmont, Calif.-based XML Web services firm, and Grand Central Communications, a San Francisco-based provider of Integration On Demand, have formed a technology and joint marketing partnership to simplify the deployment of privacy-enhanced enterprise integration. Combining the strengths of Reactivity's XML Firewall and Grand Central's Business Services Network, the two companies will offer a rapid and scalable integration solution with the security enterprises need to ensure they are in compliance with government-regulated privacy and security regulations and their own privacy policies.

Prudential Financial Inc., Newark, N.J., has introduced an automatic, online licensing application for brokers seeking appointment to sell the company’s insurance and annuity products. The electronic data collection tool, called Online Confidential Data Sheet (CDS), was developed by Indianapolis-based BISYS Education and Licensing Services for Prudential. The Online CDS streamlines the traditional, paper-based appointment process and greatly improves brokers’ speed to market."Prudential’s new electronic application is on the cutting edge in several respects," says George Hanley, senior vice president, chief compliance officer. "The Online CDS makes Prudential easier for brokers to do business with, while taking the company to the next generation of appointment processing and online records management. All are important advantages in today’s environment."