Sutherland insights insurance news flash oct 01, 2014

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INSURANCE NEWS FLASH October 01, 2014


Table of Contents Sales & Marketing ................................................................................................................. 3 Finance.................................................................................................................................. 8 Technology .......................................................................................................................... 11 Strategy .............................................................................................................................. 17

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Sales & Marketing Guardian Life Broadens Social Reach September 26, 2014 | Insurance & Technology http://www.insurancetech.com/channels/guardian-life-broadens-social-reach-/d/did/1316085?_mc=RSS_IST_EDT Financial representatives leverage content, compliance, and retention software to build relationships and grow business on social media. The Guardian Life Insurance Company of America recently announced that 81% of its financial representatives are actively interacting with customers and business partners online. After its social media initiatives proved successful, the program was expanded to its national wholesaler network. Guardian utilizes content, compliance, and retention software to ensure that representatives and wholesalers have the tools they need to build their resumes, reputations, and relationships through social platforms in order to increase business. Relevant materials include images, articles, and videos that can be posted online to attract the attention of new clients. Its current social strategy began development about three years ago. “We saw an opportunity to connect with the omnichannel consumer,” says Beth Wood, VP of agency marketing at Guardian. Social platforms provide a means of connecting with people inside and outside representatives’ networks. The road to social success was a tricky one. “Compliance is a very important part of our social strategy,” Wood explains. In addition to strategy and sharing third-party content, compliance is the third part of the “three-legged stool” that makes up Guardian’s social media approach. Its compliance department became a partner in the initiative when Guardian chose to work with Socialware, software that helps to ensure representatives are operating within the guidelines of social media compliance. To guarantee that employees play by the rules, Guardian collaborated with LIMRA to create a social media certification course. “They worked very closely with us, from the basics to writing recommendations and accepting endorsements.” Representatives are required to complete the course before using social media and participate in an annual agency meeting with a trainer. They also have access to a variety of online training courses. In 2011, Guardian rolled out the earliest phase of its social media initiative to a pilot group of 125 financial representatives. The test period brought positive results, including a boost in client calls, meetings, and presentations, and the translation of increased activity into sales. With more prospects converting into clients, Guardian extended the program to six agencies that were most comfortable with social media. As agency leaders shared their success, she says, more offices began to hop on the bandwagon. Today, about 2,500 Guardian representatives in 90 offices across the country are active on social media. Most use LinkedIn, their primary platform, to connect with larger circles in their professional communities. Many also use Facebook to achieve different social goals. “Facebook, for us, is more of a reputation platform for our agencies.” While Guardian doesn’t require a certain amount of posts, most representatives share 13 pieces of content a month.

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Guardian plans to continue training new agents on social techniques and staying current with changes made to popular social platforms. “We always have new reps coming in,” says Wood. “With that come new opportunities for success.”

Willis expands cyber practice with new leadership appointments September 23, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/09/22/willis-expands-cyber-practice-with-newleadership?ref=rss NEW YORK, September 22, 2014 – Willis North America, a unit of Willis Group Holdings plc (NYSE: WSH), the global risk advisor, insurance and reinsurance broker, has reinforced its position as a leading cyber risk advisor and insurance broker with a series of key appointments. Willis’ industry-leading FINEX Cyber/E&O Practice is supported by teams of professionals delivering risk management solutions across key industries. Willis works with organizations to develop strategic cyber risk management programs including modeling the frequency and severity of a firm’s privacy loss exposures and reviewing and strengthening contracts with service providers and vendors to minimize risk. Willis also works closely with the global insurance marketplace to develop innovative solutions to address the rapidly changing profile of cyber exposures. The following individuals will focus on aligning resources across Willis’ global platform to deliver innovative solutions to Willis’ national and multinational clients: Joe DePaul has been appointed Senior Broker. Based in New York, Mr. DePaul brings 20 years of industry experience to the role and previously served as National Practice Leader/Managing Director – Cyber Risk at Arthur J. Gallaher Risk Management Services, Inc. John O’Donnell has been appointed Senior Broker. Based in New York, he will focus on serving Willis’ clients in the health care, higher education and retail sectors. Mr. O’Donnell previously served as a vice president with Marsh FINPRO. Emily Lowe has been appointed Senior Broker. Based in Boston, Ms. Lowe has deep experience in the industry and joins Willis from ACE USA where she was an Executive Underwriter – Professional Liability focused on large Cyber, Technology and E&O accounts. Rob Barberi has been appointed Senior Broker. Based in Boston, Rob joined Willis in 2009 and has been a key member of Willis’ FINEX team. In this role, he will focus on delivering cyber risk solutions to Willis’ health care, defence contractor, technology, retail and energy clients. Nadia Hoyte has been appointed Senior Broker. Based in New York, Ms. Hoyt joined Willis in 2011 and has been a valuable member of Willis’ FINEX team. In this role she will serve as a team leader serving clients in all sectors. John Loftus has been appointed Senior Broker. Based in Boston, Mr. Loftus joined Willis in 2009 and has been a valuable member of Willis’ FINEX team. In this role he will focus on serving Willis’ financial institution and retail clients. Commenting on the appointments, Geoffrey Allen, Executive Vice President and FINEX North America Cyber Risk/E&O Product Leader said, “These appointments demonstrate Willis’ commitment to strengthening our platform to meet the expanding needs of our clients.”

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“As organizations confront expanding information technology-related risks, new regulations and a rapidly evolving cyber threat landscape, our clients demand industry-leading cyber insurance and risk management solutions to help them meet the challenges they face in a networked world. Willis is committed to enhancing our resources to deliver the innovation and deep expertise our clients depend on,” Allen added.

ACE Names 2 to High Net Worth Personal Lines Group September 23, 2014 | Claims Journal http://www.claimsjournal.com/news/national/2014/09/23/255133.htm ACE Group announced executive appointments in its high net worth personal lines insurance business, ACE Private Risk Services, naming Clyde Douglas as senior vice president, Claims, and Eileen Castolene as vice president of Operations. Based in Salem, Virginia, Douglas will be responsible for overseeing the claims operations related to ACE Private Risk Services’ specialized home, auto, recreational marine, valuable collections, and umbrella liability insurance, which are sold through independent agents and brokers. He will report jointly to Mary Boyd, division president, ACE Private Risk Services, and Frank Lattal, senior vice president, chief claims officer, ACE Group. Douglas joins ACE from Allstate’s Encompass division, where he served as the chief claims officer. With nearly 20 years of insurance claims experience, Douglas has held a variety of leadership positions in the U.S. and Canada while working at four leading insurance companies. Also based in Salem, Virginia, Castolene will be responsible for heading ACE Private Risk Services’ nationwide agency and billing services center and billing department. She will also head ACE’s NewMarkets Insurance Agency, through which contracted producers can access high net worth commercial and personal lines products for their clients. She will report directly to Boyd. Castolene joins ACE from The Hartford, where she spent the last nine years in a number of senior operational leadership roles, including vice president and general manager for a personal lines operations center and as regional director for the company’s Western and Southwestern regions in Middle Market and Specialty Programs.

Allianz to Absorb Fireman’s Fund Commercial P&C Business September 18, 2014 | Claims Journal http://www.claimsjournal.com/news/national/2014/09/18/254889.htm The Fireman’s Fund commercial property/casualty business will be integrated into Allianz Global Corporate & Specialty (AGCS), the global corporate insurance company of Allianz. The integration further strengthens the Allianz brand in its US commercial P&C business. This move follows the 2009 transfer of the Fireman’s Fund Marine business to AGCS, under the leadership of Art Moossmann, ,member of the Board of Management of AGCS. This integration brought nearly $600 million in annual gross premiums to AGCS.

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The Fireman’s Fund commercial P&C business focuses on declared areas of industry and product specialization, particularly those with domestic exposures across the United States, while AGCS concentrates on large corporations or specialty risks, particularly those with multinational exposures. The combined AGCS and Fireman’s Fund commercial P&C business is expected to total over $3 billion in revenues, based on gross written premiums in 2013. With the repositioning of the commercial P&C insurance in the U.S., various options are being considered to also build scale for the personal lines business of Fireman’s Fund. This long-standing business area, which focuses on high net worth customers, has a strong reputation for its tailored customer service and expertise. Personal lines business represents approximately one third of the Fireman’s Fund business by gross premiums (2013).

Insurance: Another thing for millennials to complain about September 17, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/09/18/insurance-another-thing-for-millennials-tocomplai?ref=rss A recent study by J.D. Power reveals that Gen Y customers—or Millennials—who comprise the largest group of homebuyers and renters in the U.S., are more critical than any other generation group of their homeowners’ and renters’ insurance experiences. The J.D. Power 2014 U.S. Household Insurance study examines overall customer satisfaction with their homeowners’, renters’ and life insurance product lines. The study shows that Gen Y consumers (those born between 1977 and 1994) are the least satisfied among generational groups with their homeowners’ insurance, averaging a score of 755 on a 1,000-point scale. Satisfaction with their renters’ insurance provider averages 784. In contrast, pre-boomers (born before 1946) are the most satisfied generation group with their homeowners’ insurance, averaging a score of 846, while Boomers have the highest satisfaction with their renters’ insurance, with a score of 829 out of 1,000. When comparing the two largest generational segments, homeowners’ insurance satisfaction among Millennials is lower across all five factors the study examined, including policy offerings, interaction, price, billing and payment, and claims. Notably low are Millennials’ interaction and claims scores. However, the study reveals that Gen Y is not the least satisfied group when it comes to the individual life insurance experience. Customers in this segment represent the largest percentage of first-time purchasers of a life insurance product, and are demonstrably more apt to use online channels for purchase compared to other generational groups. “Millennials are a critical demographic for insurance companies, given that they are the largest group of homebuyers and renters, as well as the largest group of prospective life customers,” says Valerie Monet, director of the insurance practice at J.D. Power. “Insurers in one or all of these product categories need to pay very close attention to Millennials and adapt their business model to meet the needs of this large segment, which often involves evaluating the usability of their website and finding new ways to communicate with customers, such as through the use of email, apps and online chat.”

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Insurers that are most successful in meeting the needs of millennials have a higher rate of executing specific service practices, the study reveals. Those who are able to inform customers of other products and services, provide access to policy information online, ensure complete understanding of the bill, limit billing errors, resolve issues in one contact and limit customer-reported problems are among the most successful with Gen Y customers. “In short, insurers benefit from ensuring that their Gen Y customers are well informed, and that there are no issues or problems in servicing their policy,” Monet says. The J.D. Power study also revealed that customer satisfaction, overall, with homeowners’ insurers has improved in 2014, up from 2013. The study asserts that the increase in satisfaction is driven largely by a significant improvement in the price factor. Overall satisfaction among renters’ insurance customers, on the other hand, has declined from 809 in 2013 to 802 this year. Drivers of the decline are lower scores in the interaction and billing and payment factors, the report states. Between renters’ and homeowners’ insurance customers, the largest gaps in satisfaction are in the price and policy offerings factors. Price satisfaction is 35 points higher among renters’ insurance customers, and policy offerings satisfaction is 16 points higher among homeowners’ insurance customers. When it comes to providers, Amica Mutual ranks highest in the homeowners’ insurance segment, with a score of 839. The company performs well in all five factors of overall satisfaction. AutoOwners Insurance ranks second, followed by State Farm, Erie Insurance and American Family. In the renters’ insurance segment GEICO ranks highest with a score of 811, closely followed by State Farm, scoring 810. GEICO performs well in the policy offerings, price and billing and payment factors, while State Farm succeeds in the interaction factor.

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Finance Sedgwick Claims Management Services Inc. acquires T&H Global Holdings September 23, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/09/23/sedgwick-claims-management-services-incacquires-t?ref=rss Sedgwick Claims Management Services Inc. agreed to acquire T&H Global Holdings LLC and its subsidiaries, including VeriClaim Inc., VRS VeriClaim U.K. Ltd., Unified Investigations & Sciences Inc., Cramer, Johnson, Wiggins & Assocs. Inc. and Ellis May. T&H subsidiaries provide specialized claim services, including property loss adjusting, field investigation, third-party claims management and fire and forensics investigations services that notably compliment Sedgwick’s existing capabilities. Furthermore, the acquisition will allow Sedgwick to expand its global footprint, as T&H locations span all 50 U.S. states and the U.K. The acquisition also includes membership in the global vrs Adjusters’ organization that provides services in nearly 150 countries and territories on six continents. “This is an exciting next step for Sedgwick as we continue to drive innovative solutions for employers and the industry,” said David A. North, Sedgwick’s president and CEO. “Combining the vast capabilities of the T&H and VeriClaim companies with our already robust service offerings will allow us to better serve the increasingly complex needs of our clients. With an array of property adjusting services, specialized desk-top offerings and forensic investigations, we can now respond in a more comprehensive manner during the times our clients need us the most.” Solidifying its status as a leading provider of specialized claims and productivity management solutions, the acquisition expands the company’s international footprint, allowing the company to better serve clients who operate globally. “We are excited to join the Sedgwick organization,” said Michael Arbour, president and CEO of T&H Global Holdings LLC. “Our cultures and specialized claims expertise are truly complementary. With our combined business, we will be able to provide even better solutions for the multifaceted claims needs of our clients.” The transaction is expected to close in the next 60 days.

Catalina Agrees to Acquire Danielson Indemnity September 23, 2014 | Carrier Management http://www.carriermanagement.com/news/2014/09/23/129490.htm Catalina Holdings (Bermuda) Ltd. has signed a definitive agreement to acquire Danielson Indemnity Company, the holding company of National American Insurance Company of California and Danielson National Insurance Company, from Covanta Holdings Corporation.

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As of June 30, 2014, Danielson had total assets of $62 million, gross reserves of $39 million, and shareholder equity of $18 million. Catalina will acquire Danielson Indemnity from cash at hand. The transaction, which is expected to close in the fourth quarter this year, is subject to approval by the California Department of Insurance. This is Catalina’s fourth transaction of 2014 and 15th since the business was established in 2005. Total assets of Catalina following this acquisition will be in excess of $3.1 billion. “This is a small transaction for both Catalina and Covanta,” said Chris Fagan, Chairman and Chief Executive of Catalina. “It provides Covanta with a clean exit from the insurance business and adds the expertise of the team in Long Beach to Catalina’s operations in North America.”

Room to grow: Moody’s sees solid growth, competition in E&S sector September 19, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/09/19/room-to-grow-moodys-sees-solid-growthcompetition?ref=rss With AIG subsidiaries and Lloyd’s syndicates dominating the market, the U.S. excess and surplus (E&S) sector is experiencing strong, competitive growth and profitability due to rate increases and an improving economy. In a new Moody’s “Excess and Surplus Sector Profile,” analysts found that although AIG, Lloyd’s and 25 other top insurers controlled three-quarters of the market, E&S was a robust insurance market segment with room for growth as players can set their own rates for the unique risks they cover. This puts E&S companies in a solid position to weather changes in the property-casualty insurance cycle with strong balance sheets, in spite of challenges from cat losses and low interest rates. Major findings include: Two big players. The E&S market is dominated by AIG subsidiaries and Lloyd’s syndicates, which control 35% of the market, along with another 25 top insurers that together comprise more than three-quarters of the market. Wide ranging premium volume. In tandem with the standard property-casualty underwriting cycle, E&S premium volume fluctuates significantly, ranging from 4.5% and 6% of total industry premiums over time (6% for 2013). E&S carriers will continue to increase their top line in 2014 and into next year commensurate with earned rate increases and economic growth. Rising casualty rates. Moody’s expects E&S casualty rates to rise moderately into next year while commercial property rates will continue to decline, given increased competition and barring a major catastrophe. The analysis predicts a slowing of casualty business into the E&S market as standard commercial insurers seek to retain existing profitable business and expand their risk appetite for new business but not necessarily higher risk E&S lines. Rate freedom means more flexibility. Because E&S carriers are free to set their own rates and coverage terms, they can quickly navigate market fluctuations, although with generally lower retention rates compared with the standard market. E&S players continue to emphasize underwriting profitability, particularly with still low interest rates.

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More hiring, more expansion. Favorable E&S market conditions have spurred standard insurers to expand into the sector through Lloyd’s syndicates, hiring underwriting teams, or making acquisitions. Pressure in the sector from alternative capital and the attractiveness of the sector’s potential could lead to more M&A activity.

Arthur J Gallagher buys retail insurance broker Hagedorn September 18, 2014 | World Insurance Network http://www.worldinsurance-network.com/news/arthur-j-gallagher-buys-retail-insurance-brokerhagedorn-180914-4377423 Arthur J Gallagher (AJG) has bought New York-based retail insurance broker Hagedorn, for an undisclosed sum. Established in 1869, Hagedorn offers property/casualty, risk management, group benefits and personal lines insurance products and services for commercial and individual clients across the northeastern US. The acquired entity specializes in insurance coverage for the financial, manufacturing, real estate, healthcare, legal and marine industries, as well as for nonprofit organizations, schools and municipalities. Under the terms of the deal, Daniel Gabel and his associates will continue to operate in New York City and White Plains, New York under the leadership of Douglas Brown, head of Gallagher’s northeastern retail property/casualty brokerage operations. Arthur J Gallagher chairman, president and CEO J. Patrick Gallagher, Jr., said that Hagedorn has developed a good reputation for delivering the highest quality, cost effective insurance solutions to their customers. “With their depth of expertise, solid market relationships and emphasis on niche specializations, they will be an excellent addition to our Northeastern operations,” Gallagher added.

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Technology The Motorists Insurance Group Selects Guidewire to Modernize Technology Platform September 29, 2014 | Guidewire http://www.guidewire.com/news-and-events/press-releases/2014/the-motorists-insurancegroup-selects-guidewire-to-modernize-technology-platform/ Guidewire Software, Inc. (NYSE: GWRE), a provider of software products to Property/Casualty (P/C) insurers, today announced that The Motorists Insurance Group (Motorists), a major P/C regional insurer, has selected Guidewire InsuranceSuite™ as its new platform for underwriting, claims management, billing, and rating and policy administration. PwC US, a Guidewire PartnerConnect™ alliance member, will team with Motorists in implementing the Guidewire solution. Motorists sought a pre-integrated suite of products that would provide the flexibility it needed for product innovation and the functionality required to provide customized service and quality insurance solutions. By selecting InsuranceSuite, the company will streamline and improve business processes and system infrastructure, increase operational efficiencies and, more importantly, enable the innovation necessary to transform the organization. “Complex market demands and abundant technology options have contributed to a dramatically different industry landscape and a need for significant change,” said John Kessler, senior vice president and chief information officer, Motorists. “We have an unprecedented opportunity to transform our organization.” A successful transition to a modern technology platform and data architecture will allow Motorists to: Improve service levels for agents and policyholders through automation, accessibility and selfservice capabilities; Improve product and pricing flexibility along with speed to market; Promote consistent business practices and support a single, unified data model across all companies in the group; and Enhance operational efficiencies by standardizing policy administration, billing management and claims handling processes. “The InsuranceSuite platform will provide the flexibility to allow us to be more product centric, build analytics and power the customer experience,” said Kessler. “The enhanced knowledge management capabilities and accessibility is expected to have a significant impact on the products and services we deliver and on the responsiveness to our customers’ needs.” “We are pleased to welcome Motorists to the Guidewire family as an InsuranceSuite customer,” said Dan Gordon, vice president, Product Strategy, Guidewire Software. “We admire Motorists’ dedication to providing its policyholders with excellent products and services, and we look forward to helping Motorists meet its current and future business objectives.”

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Guidewire InsuranceSuite powers the mission-critical operations of property/casualty insurers competing in today’s market. The suite was designed using a modular approach, enabling insurers to select individual applications — Guidewire PolicyCenter®, Guidewire BillingCenter® and Guidewire ClaimCenter® — or a pre-integrated set, driven by their requirements and priorities. InsuranceSuite provides the flexibility insurers need to deliver insurance the way they want to, by rapidly delivering better products and service to their policyholders and agents, while improving underwriting discipline and lowering operational costs. About The Motorists Insurance Group The Motorists Insurance Group, headquartered in Columbus, Ohio, consists of 11 property and casualty insurance, life insurance and insurance brokerage companies. The group markets insurance solutions through more than 14,000 independent agents and producers in a network of more than 2,000 agencies in states across the Midwest, Northeast and South. The Motorists Insurance Group is rated A (Excellent) by A.M. Best Company, the leading provider of insurer ratings. The rating measures financial strength and ability to meet obligations to policyholders. About Guidewire Software Guidewire builds software products that help Property/Casualty insurers replace their legacy core systems and transform their business. Designed to be flexible and scalable, Guidewire products enable insurers to deliver excellent service, increase market share and lower operating costs. Guidewire InsuranceSuite™ provides the core systems used by insurers as operational systems of record. Additional products provide support for data management, business intelligence, anytime/anywhere access and guidance and monitoring. More than 180 Property/Casualty insurers around the world have selected Guidewire. For more information, please visit www.guidewire.com. Follow us on twitter: @Guidewire_PandC.

Leverage Analytics for Improved Fraud Detection September 26, 2014 | Insurance & Technology http://www.insurancetech.com/data-and-analytics/leverage-analytics-for-improved-frauddetection/a/d-id/1316081?_mc=RSS_IST_EDT Insurers must counter smarter and more sophisticated defrauders through tech approaches that leverage data analytics. According to the Coalition Against Insurance Fraud, nearly $80 billion in fraudulent claims is made annually in the US. This figure includes all lines of insurance and is likely a conservative estimate because so much insurance fraud goes undetected and unreported. One of the largest US personal lines insurers was among the companies experiencing significant loss to fraud. Like most insurers, it relied on a combination of business rules and manual review to identify suspicious patterns and inflated claims. But leaders determined that the process was not very effective: A large number of actual fraud cases were not being caught, and a good amount of the investigators’ time was spent chasing false alarms. The company had successfully applied analytics to make more informed decisions in other areas of the business, and decided it was time to apply analytics to the problem of fraud prevention. Leaders tapped analytics solutions firm Mu Sigma, which had helped the insurer improve efficiency in claims handling, to investigate and come up with a more effective means for fraud detection.

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One of our hypotheses was that the text entries captured during various stages of the claims process could reveal scripted patterns indicative of fraudulent activity. This included unusual narratives in claims notes, indications of prior interest, and use of specific words and phrases such as “chiropractor” that the company associated with past fraud cases. Since it was difficult, if not impossible, to spot some of these patterns via manual review, a lot of these cases escaped attention. We worked with the insurer to build a text-mining algorithm and generated a fraud propensity score that combined the business rule classification with the authenticity of the text entries. Testing with the fraud investigation unit in the field revealed that the number of fraud cases being caught improved by 5 percent over a control group. Further, some of the suspicious text patterns found through the model indicated collaboration among various entities involved in the claims process, which the field unit then wanted to investigate further. In order to positively correlate those entities, we borrowed from the concept of influence mapping used in the social media world for marketing purposes, and used social network analysis to identify suspicious relationships among parties involved in a claim (claimant to employees, claimant to medical providers, etc.). This element was added to the propensity score. While this further significantly improved the number of cases being flagged, the number of false positives was still high and a cause of concern for the investigators. The team next listed all possible factors that could be indicative of suspicious activity and identified relevant data elements, such as relationships among parties as referenced above. The factors identified were then used to build a logistic regression model to predict probability of fraud given historical customer and behavioral characteristics from known cases of fraud. This model replaced the business rules being used and helped improve accuracy of the cases flagged. Finally, a composite fraud propensity score was generated using all three elements: the text-mining algorithm, social network analysis, and logistic regression model. A claims case tool was developed and deployed that allowed investigators to visualize and examine the fraud propensity score along with relevant reasons for suspecting fraud for each case. This helped investigators fine-tune which claims required manual review. When run against a sample set of claims data (a subset of which had been previously proven fraudulent), the approach positively identified 90 percent of fraudulent claims. The insurer plans to fine-tune the model periodically to ensure it’s keeping up with new approaches criminals use to perpetrate fraud. This entire project, from start to finish, took approximately three months. Based on the savings it generated, the project paid for itself within a month. The insurer reports the following results: •

It is catching 20 percent more fraudulent claims than before, even though it investigates significantly fewer claims -- just 3.5 percent of total claims.

This has led to $30 million in annual savings, not only from fraud reduction but also from reducing the cost of manual investigation efforts and false alarms.

What can insurers learn from this experience? The primary lesson is that would-be defrauders are getting smarter and more sophisticated. Insurers must counter with high-tech approaches that leverage data analytics. The upfront cost and time required are certain to pay off in the form of fraud avoidance and investigative cost reductions. Harsha Rao, associate director at Mu Sigma, contributed to this article.

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Vertafore introduces new DaaS offering September 25, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/09/25/vertafore-introduces-new-daasoffering?ref=rss Leading provider of innovative software for the insurance industry, Vertafore introduced today a Desktop-as-a-Service (DaaS) offering that helps insurance agencies migrate and manage their insurance business in the cloud. Designed to eliminate the high cost of maintaining existing PCs and desktops, as well as alleviate IT challenges associated with online premises hardware, the new DaaS offering empowers agencies with a comprehensive, cloud-based PC management solution. Through Vertafore’s DaaS solution, customers can now access cloud-based desktops and programs from virtually any computer, browser, or device, including tablets and smartphones. Around the globe, businesses struggle with aging desktop infrastructure, which can be a major hindrance in accelerating business growth. As a result, the global hosted virtual desktop market is estimated to grow a CAGR of 63.7% from 2013-2018, according to a Research and Markets study. Similarly, a recent Alberdeen report found that 34% of respondents cite the cost of supporting traditional desktop solutions is becoming to expensive to maintain, and as a result, the burdens of employing a dedicated It staff to manage PC maintenance, replacement, repair, patching and security, among other services, are increasingly pushing insurers towards virtual desktops or DaaS solutions. “Provisioning a user with a virtual desktop through Vertafore was a seamless experience for us. With a single request to a Vertafore DaaS specialist, the provisioning was completed perfectly the first time around and in the required time” says Carl Gerson, agency principal at Declaration Brokerage. “With Vertafore’s DaaS offering, I am able to forecast to the dollar amount—the cost of provisioning desktop and application resources to bring a user on board with all the associated technology that accompanies our agency growth. Startup costs and ongoing costs are very affordable and predictable to a per-user level.” “Having our PCs and Servers proactively backed up as part of Vertafore’s DaaS Managed Service offering provides us with peace of mind. We no longer have to worry about disaster readiness and reactively managing servers, and can rest easy knowing that our agency is on a cost-efficient solution that helps us focus on productivity and selling insurance” says Andrew Maceda, Jr., a lead systems administrator at The Coughlin Group. The new offering from Vertafore enables agents to retain their own personal desktop operation system and application experience, while under the security and management of Vertafore’s specialists on the Amazon cloud. As agencies opt to move from their desktops to the cloud for various purposes, DaaS is helping agencies maintain and update any and all hosted desktop requirements, including software updates, configuration and password management. Best suited for independent agencies at their threshold with desktop and hardware capital expenses, or for those considering a technology upgrade, Vertafore asserts that the service would help reduce the ample resources devoted to technology management, freeing up both time and money for agencies, allowing them to focus on business growth.

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The solution is offered to all agencies, regardless of what agency management system they use. “The cost of DaaS technology is now less than buying a PC. Modern agencies have an opportunity to reallocate significant funds to enhance more critical agency operations,” said Steven Finch, vice president of Strategic Solutions. “We provide a comprehensive portfolio of cloud services to help agencies and other insurance businesses easily transition their desktops or other business critical software to the cloud. Vertafore’s DaaS offering is a simple, secure and effective step in embracing cloud technologies, and allows agencies to free themselves from the grips of the PC stronghold.”

Applied Systems introduces new capabilities for two softwares September 19, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/09/19/applied-systems-introduces-new-capabilitiesfor-tw?ref=rss Applied Systems announced the release of Applied CSR24 2014, the latest version of its leading online client self-service software, to U.S. U.K. and Canadian independent insurance agencies and brokerages. Introduced at Applied Net 2014, the largest independent agency and brokerage technology conference, the software serves to expand global capabilities, including multi-currency and multilingual support. Applied CSR24 2014 also aids agencies and brokerages by bolstering multichannel servicing capabilities with features including online claims processing, meeting the customer demand for immediate online access to their policy information and customer service. “The demand for multichannel engagement from today’s insurance consumer is requiring insurance agencies and brokerages to augment their traditional client service through innovative online and mobile channels,” said Michael Howe, senior vice president of Product Management, Applied Systems. “Applied CSR24 2014 provides insureds with immediate access to claims information online, enabling agencies and brokerages to remain competitive by meeting this emerging customer need.” A recent Bain and Co. survey, “Global Insurance Customer Loyalty 2014,” shows that the share of digitally active insurance customers is as high as 75% in some countries, and is expected to increase over the next five years. As more and more insurance customers move online, Applied CSR24 enables agencies and brokerages to provide online client service with 24/7 access to insurance information through secure webpages that are easily accessible. The goal is to provide greater flexibility and servicing options to help agencies and brokerages increase client satisfaction, build loyalty and deliver a more competitive service. Related IVANS Connect commences first conference Focusing on connectivity and information exchange, the inaugural conference brings together carriers, agencies and software providers. “Applied CSR24 augments our brokers’ role to offer individualized client experiences and act as a trusted advisor by providing clients convenient online access to insurance information,” said Scott Lindsey, chief information officer, Hylant. “The latest release of Applied CSR24 has allowed us to create stronger client relationships by offering an additional level of claims service.”

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Closely following the release of Applied CSR24, IVANS Insurance Solutions, a division of Applied Systems, also announced new capabilities for IVANS Download, the leading service that delivers personal and commercial lines insurance information from carriers to agencies. The software’s new capabilities enable IVANS Download to deliver greater automation in carrier-agency information exchange by providing a centralized location for identifying agency download preferences, automated agency management system information delivery and up-to-date agency data. Along with the release of Applied CSR24, Applied Systems continues to strive for innovation in connectivity across the industry “Digitalization throughout the industry and changing consumer insurance needs continue to drive demand for more efficient information exchange throughout the independent insurance distribution channel,” said Paul Warga, vice president of Product Management, IVANS Insurance Solutions. “The latest enhancements to IVANS Download further our commitment to improving the business of insurance though technology that enables carriers and agencies increase their value and service to policyholders.”

Safeco Insurance Selects DocuSign September 19, 2014 | Insurance Networking News http://www.insurancenetworking.com/news/agent_network/safeco-insurance-selects-docusign34909-1.html Safeco Insurance has selected DocuSign’s Digital Transaction Management platform into its Agent Portal to help agents keep business fully digital. DocuSign can help agents compete for new business, close policies and serve customers with secure transactions. Benefits of DocuSign for Safeco agents include increased speed to revenue by facilitating faster application closing without delays from documents that are not in good order, improved document workflow by eliminating the hassles and costs of chasing paper for signature, reduced errors and omissions exposure and new convenience for clients who are now able to DocuSign paperwork anytime, anywhere on any device. DocuSign helps insurance companies and brokers accelerate document workflows and capture signatures instead of printing, faxing, scanning and overnighting documents for signature. DocuSign integrates with the systems and processes already in use by independent insurance agents, but also delivers mobile applications to support in-person transactions. “DocuSign helps us get applications and change requests back to our agency quickly and has enabled us to easily go digital,” said Willie King, Safeco independent agent with First Community Insurance. “Thanks to DocuSign’s DTM platform, our document signing workflow is streamlined – saving us time, eliminating postage expenses and delighting our customers with a paper-free experience.”

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Strategy Novarica: 40% of Insurers Planning Policy Revamp in 2015 September 29, 2014 | Insurance & Technology http://www.insurancetech.com/management-strategies/novarica-40--of-insurers-planning-policyrevamp-in-2015/d/d-id/1316157?_mc=RSS_IST_EDT Insurance technology spending overall is tracking with premium growth, reports the analyst firm’s annual survey.Insurers are working hard on data, ease of business, and policy administration projects, according to Novarica’s “US Insurer IT Budgets and Projects 2015” report, which surveyed 88 insurance technology leaders in P&C, life, and annuities. Insurance IT budgets are rising slightly -- about 3.8% on average -- but that’s in line with expected premium increases in the industry as well, Novarica says. “Growth strategies” are the most commonly cited driver of technology spending decisions, the company found. Business intelligence and data analytics was the overall highest-cited capability that IT is expected to deliver, but that takes into account heavy P&C presence in the category. Life and annuities insurers are very focused on speed to market and making it easy for their distributors to do business. Novarica also asked insurers to evaluate their own capabilities, and found that when it came to emerging technologies like business intelligence, analytics, and customer portals, insurers tended to have a lower view of their own prowess when compared to more traditional areas like security, financials, and claims. Life insurers in particular are planning “major enhancements” to their customer portals across the board, while P&C writers are most interested in the emerging area of analytics. [Novarica: Where insurers stand in 5 areas of digital strategy] In other emerging technology areas -- the “big 4” of mobile, social, cloud, and big data -- insurers remain somewhat behind, Novarica finds. While nearly half of polled insurers have some mobile or cloud capabilities, fewer than 10% report extensive deployments in any of these emerging areas, the company says. That’s compared to 40% who are working on policy administration replacement, the many-year champion for most common IT project. “We are starting to see a disparity between insurers who are investing heavily in their core systems and embracing the possibilities offered by emerging technology areas, and those that continue to treat IT as a problem to be solved. We believe the former group will continue to have a competitive advantage over the latter in this information industry,” Matt Josefowicz, managing director of Novarica and co-author of the report, says in the press release.

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Berkley Mid-Atlantic Group’s inland marine team to join Berkley Fire & Marine underwriters September 23, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/09/23/berkley-mid-atlantic-groups-inland-marineteam-to?ref=rss RICHMOND, Va. (Sept. 23, 2014) – Berkley Mid-Atlantic Group (BMAG) and Berkley Fire & Marine Underwriters (BFM), both W. R. Berkley Companies, today announced the integration of BMAG’s inland marine operations into (BFM) effective January 1, 2015. BMAG’s inland marine underwriters will remain in their current locations. Launched in 2013, BFM is a specialist underwriting manager offering preferred inland marine and associated commercial property products and services. It serves select independent insurance agents, brokers and wholesalers throughout the U.S. “BMAG’s agents will continue to have access to expert inland marine and property underwriters who will now have an enhanced capability to write business on a national scale,” said BMAG President Susan N. Grady, ARM, AMIM. “BFM is committed to excellence as our guiding principle,” said BFM President John T. Geary. “This excellence manifests itself in the way we provide superior service that consistently outperforms competitors. BFM offers the highest level of expertise and an ability to craft insurance products to meet your customers various inland marine and property needs.”

Following Unit Head Retirements, Focus Moves to ‘One AIG’ September 19, 2014 | Insurance & Technology http://www.insurancetech.com/management-strategies/following-unit-head-retirements-focusmoves-to-one-aig/d/d-id/1315904?_mc=RSS_IST_EDT The insurance giant is making the transition to a more streamlined leadership structure under CEO Peter Hancock.Three months after his appointment, AIG CEO Peter Hancock is continuing to reshape the insurance company. Today, Hancock announced that the company was moving from its previously federated leadership structure to a more unified one. The goal, he said in a statement, is to strengthen the company for optimal financial performance. “We are steadfastly working toward the goal of One AIG. We are committed to having the strongest balance sheet in the industry, [and] as a unified, global business, I firmly believe that this ensures we apply a comprehensive enterprise set of standards that keeps our risk appetite well within the capacity of our $100 billion capital base.” The announcement comes the same day that two leaders in the federated structure announced their retirements: Jay S. Wintrob, president and CEO of AIG Life & Retirement, and Michael R. Cowan, EVO and chief administrative officer, will leave the company.

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“I would like to extend my sincere gratitude and appreciation to Jay, [who] leaves behind a strong leadership team and businesses that are well-positioned for the future,” Hancock said in his statement. “I also would like to thank Mike for his dedication and professionalism as AIG’s CAO since he joined the firm in 2010. He has been an asset to the company, and we are grateful for all that he accomplished while at AIG.” He announced the new operating committee, which will report to him, with the following executives: •

Murli Buluswar, chief science officer

Philip Fasano, CIO

John Doyle, commercial, including global capabilities such as property; casualty; financial lines; specialty lines; institutional markets; and mortgage guaranty

Jose Hernandez, Asia Pacific, representing 16 countries and jurisdictions

David Herzog, chief financial officer

Kevin Hogan, consumer, including accident and health; personal lines; life insurance; retirement income solutions, including variable, fixed, and indexed annuities; group benefits; group retirement; and retail mutual funds

Jeffrey Hurd, human resources, communications, and administration

Seraina Maag, Europe, Middle East, and Africa, representing 47 countries

Eric Martinez, claims and operations

Thomas Russo, general counsel

Sid Sankaran, chief risk officer

Robert Schimek, Americas, representing 29 countries and jurisdictions

“This team of leaders will work together to bring AIG’s talented people closer to our customers, distribution partners, regulators, and the communities where we live and work,” he said. “I am excited about the opportunities ahead of us, and I am confident that we are positioned to capitalize on them with focus, discipline, and integrity.”

Progressive’s Hiring Plans Include Close to 1000 New Jobs by Year End September 17, 2014 | Claims Journal http://www.claimsjournal.com/news/national/2014/09/17/254829.htm Progressive plans to fill nearly 1,000 jobs across the country by the end of 2014. Positions include IT, Analyst, Call Center, Claims and Corporate roles and span locations from Austin, Texas to its headquarters in Mayfield Village, Ohio.

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Positions are available across the country, including Progressive’s major locations in Ohio, Colorado, Florida, Texas, Arizona and California, with IT and Analyst positions focused on Big Data projects concentrated in Cleveland and Colorado Springs. Flexible work arrangements, including working from home and compressed work weeks; performance bonuses; a casual dress code; on-site medical facilities for employees and their families; and fitness centers are just some of the amenities that Progressive offers. All positions offer paid training. In addition, employees also receive medical, dental, vision and life insurance benefits.

Fight Insurance Price Sensitivity With Social Interactions September 16, 2014 | Insurance & Technology http://www.insurancetech.com/channels/fight-insurance-price-sensitivity-with-socialinteractions/a/d-id/1315766?_mc=RSS_IST_EDT Some insurers are shifting to a focus on the quality of the customers and their longer-term spending power.Loyalty is very rarely rewarded -- especially in the financial services industry, where more products are becoming increasingly commoditized and customers are becoming more finicky. The average customer who has been with the same bank for more than 20 years gets the same treatment as a new customer when it comes to overdraft charges. A customer with the same insurance carrier for the same amount of time may see her premiums raised due to a claim or changes in her lifecycle. There’s very little incentive to reward loyalty; as customers age, the likelihood of paying out a claim on a policy increases, making that customer less profitable. In other industries, after introductory rates for a set period of time are offered -- for example, in Internet services -- the rate rises, and newer, more attractive offers are reserved for new customers only. The current focus is primarily on new customer acquisition, not customer retention or cross selling or building advocacy. Across industries, customer loyalty is key to driving profit and growth. Finding loyal customers drives companies to focus on existing customers for retention, which can lead to a greater customer lifetime value. Insurers, however, are still very much focused on attracting new customers. The more than $4 billion spent on insurance advertising by US insurers is a battle for market share that is very much focused on getting customers to switch their carriers. It is, at a very basic level, a quantity vs. quality approach. Some insurers are beginning to shift their focus from new customer acquisition to retention and improved cross-selling. They are spending less on traditional advertising and shifting investments to improving their presence in digital touch points. It is a shift to focus on the quality of the customers and their longer-term spending power. A customer with multiple products is less likely to leave than one with a single product, especially in auto insurance. A customer who is happy and engages with a company is more likely to recommend that brand to others.

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