When it comes to claims processing, insurers are being driven by the rules-business rules, that is. Using rules-based technology, insurance companies are automating routine tasks, streamlining claims workflow with consistent best practices, and automatically adjudicating low-risk claims."At this point, anybody who is not using rules-based technology is already behind the curve," says Michael Lucarini, partner in the insurance group at Bermuda-based Accenture. "There are certain processes and certain areas of low risk where insurance companies need to cut the costs out and streamline those processes. And that requires the ability to segment your claims and understand your claims experience."

Just five years ago, security maintenance and administration for insurance giant Aetna Inc's more than 100 nationwide field offices was complicated, cumbersome and costly. In fact, the security "system" for the Hartford, Connecticut-based insurer and its field offices was an amalgam of multiple records for each badge technology type and required more than 30 systems integrators to support the program with-no direct interface to human resources or vendor databases."Not only was it difficult to manage all these different systems, there were frustrations in locating vendors when there were problems and getting work done at the sites as well," says Dave Gionfriddo, system design manager at Aetna.

The outsourcing option is not a new concept for insurers. Indeed, our cover story in September 1999 noted that "stagnant premium growth, industry consolidation, rapid technological change and financial service market convergence are among the key drivers forcing insurers to rethink outsourcing."Fast-forward to 2004. Although the primary market drivers are somewhat different today, the industry still is wrestling with increased competition, new regulatory requirements, the inability to differentiate products, aging IT infrastructures, and the need to reduce expenses-business issues that are directly associated with implementing new technology.

In recent years, a combination of poor planning, bad execution and an inability to properly measure results have conspired to undermined customer relationship management (CRM) initiatives, casting doubt on future insurer investments in this space.Despite these missteps, a growing number of insurance companies have realized that best-practices CRM can become a reality if insurers can somehow summon up the ability to re-engineer their CRM strategies and alter their corporate focus.

As the insurance industry continues to focus broadly on growth, cost containment and risk management, new research has identified several strategic initiatives that might provide traction to insurers as they endeavor to improve their businesses.The final segment in a series of six "2004 Perspectives" formulated by Needham, Mass.-based research and consulting firm TowerGroup examines critical business and technology issues and trends that the firm expects will impact financial services.

As a small, regional insurer, Wayne Mutual has been outsourcing its IT operations for 20 years. Formed in 1910 as a mutual protective association for local farmers, the Wooster, Ohio based carrier today provides property/casualty insurance to 30,000 policyholders in "the Buckeye state.""Wayne Mutual has never done its own IT processing," says Tim Suppes, vice president of operations at the company, which reported $16.6 million in net written premium in 2002. "We're not big enough to have an in-house staff of programmers," he says.

At the end of the 1990s, when the promise of the Internet revolution and the dot-com craze lost its luster, business analysts predicted the demise of application service providers (ASPs). However, with a new and more precise mission focus, enhanced technologies, higher returns on investment, and evolved security measures, ASPs are making a strong comeback.During the heady days of the IT boom, ASPs sprung up like weeds in a new, fertile landscape. They were conceived to provide Web-based processing software and powerful host server access to businesses so that they wouldn't have to buy their own systems and hardware.

Many property/casualty insurers struggle to comply with changes in rates and rules promulgated by insurance bureaus. Insurance Services Office Inc. (ISO), the American Association of Insurance Services (AAIS), National Council on Compensation Insurance (NCCI), National Association of Independent Insurers (NAII) and state workers' compensation bureaus together send insurers thousands of notices each year changing loss costs, rates, rules and forms in the 50 states.Each company must interpret and code these changes-an expensive, never-ending effort. Insurers also must report policy, premium and claims data back to the same bureaus, another time-consuming task.

Feb 02, 2004-- Salmon Ltd, the IT services and consulting firm, today announced the launch of its new underwriting solution. Unlike traditional underwriting solutions, Salmon's is fully Web-based and covers all the key elements of the insurance lifecycle with an integrated solution including claims, reinsurance and management information systems (MIS).

HARTFORD, Conn. -- Travelers Property Casualty Corp. announces that it will now provide Web-based ability to create and print Ocean Cargo Certificates of Insurance to its Ocean Cargo policyholders and their agents.

JERSEY CITY, N.J.--Insurance Services Office, Inc. (ISO) has acquired Quality Planning Corporation (QPC), a San Francisco-based provider of analytic methods for helping auto insurance companies achieve greater rating integrity. Terms were not disclosed.

Valley Oak Systems, Inc. (VOS), a national provider of claims management software, services and support, has completed development of a new data extraction tool that will streamline the submission of claims data to the Public Entity Risk Institute (PERI), a non-profit organization that oversees the PERI Data Exchange, a national database of public sector liability and workers' compensation claims, judgments, and exposures.

Skywire Software, a leading provider of enterprise software, announced today that it has named Karl Schultz as the company's new chief information officer. Schultz most recently served on the company's executive team as Sr. Vice President, Software Development. Schultz will be responsible for leading the development of the company's products, delivering on successful customer engagements, and overseeing the company's information technology operations.

ATLANTA-- 2004 may be a better year for the insurance and financial services industry, say members of the LOMA board of directors. LOMA's Resource magazine recently surveyed LOMA's directors, who represent global leaders in financial services, seeking their industry forecast for 2004. Most of the directors participating in the survey agreed that, with the U.S. economy showing signs of gradual recovery, things are looking up for industry sales, premiums, and profits.

Frimley UK--Candle Corporation, a leading enterprise infrastructure management provider, today announced that Royal Liver Assurance has selected Candle`s PathWAIsolutions to support the development, implementation and management of its IBM WebSphere application infrastructure using Linux. Candle`s PathWAI solutions enable organisations to accelerate application infrastructure development and deployment, ensure consistent performance and enhance management control.

NEW YORK--Directors and officers (D&O) liability insurance premiums increased approximately 33% on average from 2002 to 2003, according to the Tillinghast business of Towers Perrin's 2003 Directors & Officers Liability Survey.

The New Jersey Supreme Court issued a unanimous decision Thursday supporting the insurance industry's views that wrongful death and survival actions do not trigger separate "per person" coverage claims under an automobile liability insurance policy.

Milwaukee, Wisconsin--COSS Development Corporation, a specialist in illustration and point of sale systems for the financial services industry, has released Journey 2004. Journey is COSS' premier needs-based financial modeling software. The new 2004 version, for both Web and desktop, is now being distributed to current users as an upgrade.

St. Louis, MO--Genelco Software Solutions, a division of Liberty Insurance Services Corporation (LIS), today announced the positive results of a Genelco Group+ benchmark test completed at the IBM eServer iSeries Benchmark Center in Rochester, Minnesota.

New Haven, CT- Metaserver, Inc., a leading provider of business process integration (BPI) solutions for the insurance industry, announced it has launched its new iConnect agency interface solution for Property and Casualty carriers. The first of several solutions designed specially for insurance carriers, iConnect P&C is compatible with and extends the capabilities provided by leading vendors in the insurance space such as ChoicePoint, CSC, Duck Creek, ISO, IVANS and others.