INSURANCE NEWS FLASH September 16, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance.................................................................................................................................. 7 Technology .......................................................................................................................... 12 Strategy .............................................................................................................................. 19
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Sales & Marketing Hiscox Launches Private Investment Fund Portfolio September 09, 2014 | Insurance Journal http://www.insurancejournal.com/news/national/2014/09/09/339961.htm Hiscox, the international specialist insurer, has launched its Private Investment Fund Portfolio product to provide protection for many types of asset management firms. The portfolio provides coverage for lawsuits alleging breach of fiduciary duty, fraud, insider trading, securities law violations, conflicts of interest and other common risks faced in this industry. The complex U.S. regulatory environment, heightened with the passage of Dodd-Frank, is increasingly exposing these firms to litigation from investors, portfolio companies, minority shareholders of portfolio companies, regulatory agencies, employees and a number of other third parties. Hiscox offers alternative asset management firms a portfolio of coverages specifically designed to protect them from both long standing and newly emerging exposures. Policies provide coverage up to a maximum line of $5 million, primary or excess, and come with a complimentary risk management service. In addition to the standard management liability, professional liability and outside position liability coverages, clients can choose to add on any combination of employment practices liability, fiduciary liability and employed lawyer’s coverage under a single “portfolio” policy. Hiscox’s portfolio of insurance products includes: executive risks, media & entertainment, professional liability and property coverages. The company has offices in New York; Atlanta; Chicago; Los Angeles; San Francisco, CA and White Plains, N.Y. Hiscox Inc., a Delaware corporation headquartered in New York, d/b/a Hiscox Insurance Agency in Calif., is a licensed insurance intermediary for admitted and surplus lines business. Hiscox Inc. underwrites on behalf of, and places business with, Hiscox Insurance Co., Inc., other domestic insurers, and syndicates at Lloyd’s. Hiscox Insurance Co. Inc. is a Chicago, IL domiciled insurer which is admitted or licensed to do business in all 50 states and the District of Columbia.
Arch Mortgage Insurance Company Approved to Provide Mortgage Insurance on Mortgages Sold to the Federal Home Loan Bank of Boston September 09, 2014 | Businesswire http://www.businesswire.com/news/home/20140909005957/en/Arch-Mortgage-InsuranceCompany-Approved-Provide-Mortgage#.VBgLRJSSxfY Arch Mortgage Insurance Company (“Arch MI”), a leading provider of private mortgage insurance and wholly owned subsidiary of Arch Capital Group Ltd., today announced the Federal Home Loan Bank of Boston’s (“FHLB Boston”) approval of Arch MI as an eligible mortgage insurer for loans purchased under its Mortgage Partnership Finance® program which provides member institutions a competitive secondary market alternative. With this approval, Arch MI is now an eligible mortgage insurance provider to all Federal Home Loan Banks across the nation with mortgage purchase programs.
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Arch MI is extremely pleased to be granted approval from FHLB Boston and to serve the mortgage credit enhancement needs of its more than 440 New England financial institution members,” said Richard Izen, Executive Vice President, Sales and Marketing at Arch MI. “This approval by FHLB Boston is further evidence of Arch MI’s counterparty strength and long history of commitment to expanding homeownership,” continued Mr. Izen. “At Arch MI, we are strong supporters of the Federal Home Loan Bank’s mission of supporting community-based financial institutions, including credit unions and community banks, in developing their residential-mortgage lending activities.” ABOUT ARCH MORTGAGE INSURANCE COMPANY (formerly known as CMG Mortgage Insurance Company) Arch MI is a leading provider of private mortgage insurance. Headquartered in Walnut Creek, CA, Arch MI's mission is to protect lenders against credit risk, while extending the possibility of responsible homeownership to qualified borrowers. Arch MI was formed when Arch Capital acquired CMG Mortgage Insurance Company (CMG MI) and the mortgage insurance operating platform of PMI Mortgage Insurance Co. on January 30, 2014, creating a state-of-the-art mortgage insurance operation. Arch MI is licensed to write mortgage insurance in all 50 states, the District of Columbia and Puerto Rico. For more information, please visit www.archmi.com.
Ironshore to offer P&C coverage to M&A insurance lines September 08, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/09/08/ironshore-to-offer-pc-coverage-to-mainsurance-lin?ref=rss Hamilton, Bermuda, September 8, 2014 – Ironshore International is introducing a Property coverage enhancement to its Mergers & Acquisitions business lines. Ironshore’s M&A Property offers buyers’ protection for both on and offshore structured transactions that involve property assets and vehicles. Program cover insures general and tax warranties and can also augment additional layers of protection for title and tax residency risk exposures. Ironshore’s cross-divisional program can facilitate transaction needs with the various parties to protect funding resources, including lending banks, when the financial covenant of the seller may not be sufficient, thereby enabling the seller to immediately distribute transaction proceeds to the respective investors and lenders. “Ironshore’s tailored solution for M&A property business deals responds to expressed client demand by providing overarching protection and financing cover for complex property transactions throughout our global platform,” stated Robert Brown, Global Head, M&A Unit.
Progressive and Zubie target safe drivers September 05, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/09/05/progressive-and-zubie-target-safedrivers?ref=rss In an industry first, Progressive Insurance and startup Zubie are collaborating on a new telematics solution that can provide savings to customers based on their safe driving habits.
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Zubie has created a device that plugs into any vehicle and tracks how well (or poorly) an individual is driving. Drivers merely need to plug the Zubie Key into their car’s on-board diagnostic port and it will feed information directly to the driver’s Android or Apple smartphone. This encourages drivers to make safer and smarter decisions on the road (like slowing down for yellow lights instead of speeding through an intersection). The new partnership will enable customers to share their information through Progressive’s Snapshot® program in order to earn discounts based on their driving habits. Dave Pratt, general manager of usage-based insurance for Progressive says, ““With Snapshot, we’re always looking for ways to help more people participate in the program and save money on their auto insurance…By using the driving data that the customer is already sharing with Zubie, we make the process even easier for customers.” Zubie CEO Tim Kelly says the companies “share the same vision of making the road safer by arming customers with the right tools to make smart decisions about their driving habits.” Zubie users pay a monthly fee for the device, but the information collected provides more than just driving data. It also offers battery monitoring, as well as trouble code reporting and estimating, all in real-time through cellular connections. The company, which specializes in the Internet of Things technology, recently raised $8 million in funding, led by Nokia Venture Partners and Magna International.
Marsh launches catastrophic cyber policy for large companies September 04, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/09/05/marsh-launches-catastrophic-cyber-policy-forlarge?ref=rss New York, September 4, 2014 – Marsh, a global leader in insurance broking and risk management and a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), announced the launch of a new cyber insurance policy that provides catastrophic protection for large companies seeking to better manage the growing threat of a cyber-related data disruption or unplanned technology outage. Underwritten by leading cyber insurers and sold exclusively through Marsh, Cyber-CAT offers limits of more than $300 million in coverage above a minimum $100 million self-insured retention. In addition to high capacity, Cyber-CAT provides coverage over and above what standard cyber insurance policies offer including physical property damage resulting from a system failure. “The costs associated with a major cyber-event or technology disruption can run into the hundreds of millions of dollars for large companies – even those with little to no ‘typical’ privacy exposure,” said Bob Parisi, Marsh’s Network Security and Privacy Practice Leader. “While many of these larger companies have sought protection from the cyber insurance market, coverage to date has often been insufficient. With Cyber-CAT, Marsh is able to offer the largest companies access to enhanced levels of coverage for the catastrophic data and technology risks they face, while also allowing them to manage the risk in a manner consistent with how they approach other operational risks.”
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Cyber-CAT can be customized to include any or all of the following coverages: •
Privacy and security liability.
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Information assets.
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Business interruption coverage, including extra expense.
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Cyber extortion.
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Criminal reward fund.
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Crisis and event management.
More detailed information on the cyber risk landscape and key coverage elements of Marsh’s new propriety policy can be found in the Cyber-CAT brochure.
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Finance Bad news for U.S. insurers as Europe takes the lead in insurance M&A activity September 15, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/09/15/bad-news-for-us-insurers-as-europe-takesthe-lead The historic domination of the US in terms of overall share of M&A in the industry has slipped as Europe has taken pole position in the volume of transactions completed according to the latest Global M&A report from Clyde & Co The overall level of insurance transactions in North America over the last five years shows activity peaking in 2011, and then trending steadily downward. The bottom of the market was reached in the second half of 2013, and activity picked up slightly in the first half of 2014. Historically, the US has dominated in terms of overall share of M&A in the industry – an entirely natural consequence given the size and maturity of the world’s leading re/insurance market. However, the last 12 months has seen a reversal – from July 2013 to June 2014 there were 139 transactions in Europe, up from 123, while the US there was a drop from 113 to 97. Doug Maag, a Partner at Clyde & Co in New York, said: “Contributing factors to this downwards trend appear to include differing buyer/seller perceptions of company value, ongoing regulatory uncertainty, the uncertain economic outlook, and some companies’ preference to reinvest excess capital into the business or to satisfy shareholders with stock buybacks and dividends. “In the case of the regulatory environment – particularly in the US – the efforts by regulators to identify Systemically Important Financial Institutions (SIFIs), and the fact that the criteria for these is still evolving and subject to change, creates an environment which may cause acquirers to pause for thought. This is particularly key if a potential deal increases the size and profile of the combined entity so it can be deemed to be a SIFI, thus making it subject to a layer of federal regulation with more stringent transparency requirements, restrictions on capital and consumer protection. “There may be signs however that the trend could reverse. GDP growth is particularly critical in stimulating or dampening M&A. The consistent rise in the US stock markets over the last 12 months may lead firms to conclude that valuations are back at levels at which they would consider a sale and, therefore, increase the number of management teams willing to consider an offer. At the same time, the faster than expected growth in US GDP in the second quarter of 2014 may signal a return to a macro-economic environment that could stimulate expansion through M&A."
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Fitch says surplus lines remain strong; growth to continue in 2015 September 11, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/09/11/fitch-says-surplus-lines-remain-stronggrowth-to-c?ref=rss WASHINGTON—Surplus lines underwriters outperformed the property and casualty insurance industry’s combined ratio by an average of 10 percentage points for the 2009−2013 period, according to a new report by Fitch Ratings. The report said direct premium in the U.S. excess and surplus lines insurance market direct written premiums expanded by 8 percent. Moreover, premium growth is up 5 percent for the first half of 2014, meaning that underwriting profitability is expected to be sustained in 2014. That follows a strong 2013 performance that beat the P&C industry aggregate by almost 10 percentage points on a direct combined ratio basis, the report says. At the same time, Fitch analysts say in the report that premium growth is expected to continue into 2015, but profitability is likely to decline because of increased capacity, which is leading to pricing pressure. Rate increase growth has already slowed and turned negative in some segments, particularly commercial property, the report said. Another factor likely to lead to lower profitability is diminishing favorable loss reserve development, which is reducing underwriting performance, and continued low asset yields, which is adversely affecting investment income, the report says. At the same time, Fitch said that the non-admitted or surplus lines industry constitutes only five percent of the U.S. premiums-written property and casualty market. The report said higher SL industry premiums are driven by rising rates in various lines, increased exposure due to a continued, albeit slow, economic recovery and a reduced appetite from standard carriers to write non-standard risks. The report said that Lloyd’s of Lloyds of London and American International Group, Inc. continue to dominate the non-admitted market. The report said Lloyd’s’ premiums grew 13 percent in 2013, while AIG premiums declined 5 percent. The Lloyd’s premiums consisted are gross of outward reinsurance and commissions on a calendar-year basis and excludes pools.
Anchor Insurance to Acquire Southeast Surplus Underwriters and Affiliates September 09, 2014 | Claims Journal http://www.claimsjournal.com/news/southcentral/2014/09/09/254364.htm Anchor Insurance Holdings is purchasing Beaumont, Texas-based Southeast Surplus Underwriters General Agency, Spindletop Premium Finance, and Ranchers and Farmers Insurance Co. from Mirage Interest Inc., the companies reported. According to information posted on its website, Mirage Interest is a descendant business of a retail insurance agency founded by T. E. Moor in 1942.
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Current Mirage Chairman Ted E. Moor, Jr. joined his father in the T. E. Moor & Co. agency 1957. Day to day operations of the companies in their Beaumont location will remain the same. The sale is expected to close before the end of the year. Anchor Insurance was recently founded by a team of experienced insurance professionals. Its executive team includes President Mitch Sattler and Chief Financial Officer Jennifer Pintacuda. Pintacuda, stated that with the capital infusion provided by Anchor, “we will double the insurance company surplus, allowing us to grow and deliver on the plans we have made. This extra capital will also provide us with significant reinsurance buying power we need to protect the company and meet our claims obligations while we expand and add capacity.”
Manulife buys Canadian operations of Standard Life for $4-billion September 04, 2014 | The Globe and Mail http://www.theglobeandmail.com/report-on-business/manulife-buys-canadian-operations-ofstandard-life-for-4-billion/article20334204/ Manulife Financial Corp. is acquiring the Canadian operations of Britain’s Standard Life PLC in a $4billion deal that builds both insurers’ wealth businesses and boosts Manulife’s presence in Quebec. Canada’s largest insurer by market capitalization said it was approached by Edinburgh-based Standard Life several months ago as the company looked to part ways with its Canadian unit, which has 2,000 employees and 1.4 million customers. One of the main attractions for Toronto-based Manulife was Standard Life’s much larger presence in Quebec. “Part of our strategy is to improve our presence in Quebec and increase our penetration of the market in Quebec,” said Donald Guloien, chief executive officer of Manulife. “Unfortunately, Manulife has historically been underrepresented in Quebec, both in terms of jobs and our penetration of the market.” The deal was also attractive to Manulife in large part as a way of accelerating its wealth and asset management business, including retirement and group benefits. The two global companies will build on their existing wealth and asset management partnership to improve offerings in regions where each is weaker. “We’ve agreed with Standard Life that we’ll collaborate on asset management opportunities globally,” Mr. Guloien said, adding that their combined asset management businesses could be more impressive to clients. “We plan to explore opportunities together,” he said. Manulife has been steadily expanding its asset management business internationally in recent years, with a focus on North America, Asia, Europe and the Middle East. The company’s global asset management arm reached $300-billion in assets under management at the end of June. The collaboration “will broaden the range of asset management products and solutions available to our clients in Canada and around the world,” Kai Sotorp, executive vice-president of global wealth and asset management, said in a statement.
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Mr. Guloien said the deal will require regulatory and Competition Bureau approval, but he couldn’t identify any parts of the Standard Life business Manulife would not want to keep and says the company doesn’t expect it be an issue. He described the bidding process as “very competitive.” The move will notably help Manulife meet and exceed its target of generating annual core earnings of $4-billion by 2016 (core earnings strip out the impact of interest rates and one-time items). Manulife’s core earnings in the first half of 2014 reached $1.42-billion. The company will eventually convert the Standard Life-branded business to its own Financière Manuvie brand in Quebec, and the Manulife brand elsewhere in Canada. It has also set a goal of not cutting any jobs within Standard Life’s operations for 18 to 24 months, in an effort to protect customers from any disruption. Integration costs are expected to total $150-million in the first three years. A portion of the acquisition will be funded with $2.1-billion of subscription receipts, which gives each receipt holder the right to one Manulife common share plus a dividend consideration. This sale will be facilitated in part through a $1.6-billion bought deal. The rest of the equity financing will come in the form of a $500-million investment from Quebec pension manger Caisse de dépôt et placement du Québec. This investment doubles the Caisse’s interest in Manulife to $1-billion, making it one of the insurers largest stakeholders. “By capitalizing on these strengths, Manulife is committed to reinforcing Montréal as a financial centre,” Michael Sabia, CEO of the Caisse, said in a statement. Manulife said the remaining funding amount would come through internal resources, and the possible issuance of preferred shares or debt. The move won't affect the insurer’s ability to pay dividends to shareholders, and will boost its ability to increase dividends in the coming years, Manulife said. The deal is expected to add approximately 3 cents in earnings per share each year, excluding transition and integration costs, for the three years to 2017. But the company said the transition costs in core earnings “will create a modest, temporary headwind on our core [return on equity] objective of 13 per cent.” “From our perspective, this is likely as clean an acquisition as Manulife could do, with little disruption to its capital or leverage ratios,” John Aiken, an analyst at Barclays Capital, said in a note to clients. “Further, we do not believe that this transaction necessarily precludes Manulife from pursuing other opportunities.”
Aon Risk Sells eSolutions to Symphony Technology September 03, 2014 | Insurance & Technology http://www.insurancetech.com/aon-risk-sells-esolutions-to-symphony-technology/d/did/1315456? Aon will continue to provide eSolutions products to its client base.Aon Risk Solutions, the global risk management business of Aon plc, has announced the sale of Aon eSolutions. Symphony Technology Group has acquired the risk management information systems business unit for an undisclosed amount.
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eSolutions provides claims, risk and safety solutions, software and services. As part of this deal, Aon Risk has agreed to resell exclusively eSolutions’ iVOS and RiskConsole RMIS products to its clients as part of a multi-year distribution contract. “As the risk management technology space evolves and integration with enterprise software systems continues to expand, it made sense to transition the eSolutions business to owners that focus exclusively on the unique aspects of the software sector in order to continue to empower the best results for our clients,” said Michael O’Connor, CEO of Aon Risk Solutions, in a statement.
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Technology Progressive Selects BAE Systems to Detect Fraud September 15, 2014 | Insurance & Technology http://www.insurancetech.com/security/progressive-selects-bae-systems-to-detect-fraud/d/did/1315723?_mc=RSS_IST_EDT The solution will be used to enhance the recognition of claims fraud in auto insurance. Progressive Insurance has chosen to implement the NetReveal general insurance counter-fraud solution from BAE Systems Applied Intelligence. The investment will help to better identify claims fraud for personal auto insurance. In an effort to address the increasing risk of claims fraud in the personal auto space, Progressive will integrate NetReveal’s analytical and case management capabilities into its internal systems and operations. The system’s network-based detection will also help to capture collusive activity early on in the claims cycle. “The deployment of NetReveal will help us more accurately identify which claims to investigate for potential fraud,” said Jeff Moore, senior process director for special investigations at Progressive, in a statement. “Our priority is to reduce the impact of insurance fraud on our customers."
Data, Data Everywhere, With Governance Around the Corner September 12, 2014 | Insurance & Technology http://www.insurancetech.com/data-and-analytics/data-data-everywhere-with-governancearound-the-corner/a/d-id/1315627?_mc=RSS_IST_EDT Despite heavy investment in collecting and managing data, the art of data governance is still emerging in the insurance industry.Most insurance companies have some type of data initiative in place. They focus their efforts on implementing reporting tools, analytic tools, and repositories -with all the tools that go with them. But despite the investment in collecting and managing data, the art of data governance is still emerging in the insurance industry. The discipline includes a focus on data quality, data management, data policies, and a variety of other processes surrounding the handling of data in an organization. The purpose is to assure carriers have reliable and consistent data sets to assess performance and make decisions. I recently conducted a survey of CIOs to understand the role of data governance, some of the issues carriers face, and which governance initiatives generate the most value for carriers. As more companies start to understand the value of their data as a key business enabler, they are seriously looking into the added value of data governance. Some see it as a prerequisite for all data and information-related initiatives, ranging from data cleansing to the implementation of analytics.
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But carriers face governance challenges. Data is spread across a wide variety of applications, and data ownership is most often shared across the business and IT. Carriers report cultural resistance to understanding data issues, which makes it harder to find sponsors for data governance initiatives. Consequently, a large number of carriers deploy informal data governance initiatives -- especially larger carriers. Most carriers have some level of data governance practice in place, whether formal or informal. However, although more than half of the carriers report governance as mission-critical or highly important, fewer than half have formal data governance initiatives in place. For most carriers, less than half of their data is governed either formally or informally. Midsized/small carriers report a greater percentage of their data is governed than large carriers. It may be that smaller organizations find it easier to exert governance initiatives across an organization than larger carriers, which often face fragmented organizational environments with multiple data owners. Data quality issues are common in the industry, but they are less common among carriers with formal data governance initiatives in place. The top challenge carriers face when it comes to data is collecting and analyzing data quickly enough. A fragmented data environment follows, with poor data quality the third top issue. These problems build on each other; a fragmented data environment makes it difficult to collect the data quickly, and poor data quality makes it difficult to analyze and use the data to make better decisions. The primary reason carriers implement data governance initiatives is to improve their decisionmaking. They are also looking to gain unique insights and improve their management planning. Few carriers have a single organization owning the data, and when they do, it tends to be a business leader that owns it. This raises the question of who is most responsible for data governance. Carriers report significant cultural resistance to understanding data initiatives, which may be why a large number of carriers report that their data governance initiatives are informal. IT also means business and IT alignment is critical and raises the question of the role that the business should play in data governance. Data quality initiatives drive the most value for carriers. A data governance council also drives significant value, and many carries are getting value from a centralized data governance team. However, few carriers are getting value from data audits or from having data governance metrics in place. Next steps for CIOs •
Keep it realistic: In organizations with shared data ownership, it will take time to get everyone on board with the value of data governance and the need to invest. Start small by working with those who recognize the value of data governance and are willing to contribute.
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Develop a cross-functional approach to data governance: Build a strong partnership with the business by soliciting input from a wide variety of perspectives. Include business executives, IT managers, and end users. Getting explicit buy-in from key stakeholders and executive management will help establish priorities when making the difficult decisions often required in resolving data issues.
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Gain support by communicating the benefits of data governance: Cultural resistance comes when the business doesn't understand the link between data quality and improved performance.
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Prioritize the development of formal data governance initiatives: Informal data governance policies are prevalent. As carriers move from informal initiatives to formal initiatives, give priority to those that are most likely to deliver significant value.
SaaS Helps Ohio National Improve Agent Experience September 12, 2014 | Insurance & Technology http://www.insurancetech.com/channels/saas-helps-ohio-national-improve-agentexperience/d/d-id/1315628?_mc=RSS_IST_EDT The insurer sought an ACORD-compliant, XML-based approach to achieve straight-through processing.With its decade-old homegrown agent quote and e-application system becoming insufficient to meet changing demands, Ohio National Financial Services sought a more streamlined way to interact with its distribution network and speed policy issuance. Over time, it’s become the critical first step in achieving straight-through processing of electronic insurance applications. “In 2010, we determined our existing drop-ticket solution lacked the flexibility to add enhancements we required,” says Danny Leach, manager of IT customer communications for the Cincinnati-based insurer and financial services provider. “In addition to new features, we also needed a solution that would result in strong agent adoption rates." After internal discussion, Ohio National ($38.8 billion in total assets) decided to seek a SaaS-based, ACORD-compliant and XML-enabled solution, with vendor evaluations beginning in late 2010. Once the field was narrowed to three, a subsequent deep dive suggested FireLight by Insurance Technologies (Colorado Springs, Colo.) would be the best fit. “Insurance Technologies claimed to take an agent-centric approach by designing FireLight based on an electronic representation of the paper application agents were already accustomed to using,” says Leach. “When we polled a sampling of our top agents, they were enthusiastic about this concept.” A go-slow approach to SaaS Still, Ohio National took a conservative approach to SaaS adoption. “As it was one of our first forays with hosting a significant business process on a shared platform, we conducted a great deal of due diligence,” Leach notes. “For example, before signing a contract with Insurance Technologies we leveraged the expertise of a certified ethical hacker we have on staff. After several days, we were unable to shoot any holes in Firelight.” Once a deal was inked in January 2012, deploying the first Ohio National product on the FireLight platform occurred quickly. “We chose a popular product and set an aggressive launch date of June,” says Leach. In response, Insurance Technologies said it would dedicate all necessary resources and development began, guided by weekly meetings of the Ohio National team. In May, a pilot with a select group of agents showed the Ohio National team that a few subtle workflow changes would make the process more intuitive. “When it happened,” says Leach, “our weekly internal project team meetings quickly became focused on keeping up with our vendor, rather than the other way around.” A May pilot with a select group of agents showed the Ohio National team that a few subtle workflow changes making the process more intuitive were desirable. “Insurance Technologies readily
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incorporated the changes and, after our test agents approved, included them in the final production release,” says Leach. “The fact that we had a voice in making such modifications was a new experience for us.” Prior to successfully meeting its go-live target of mid-June 2012, Ohio National produced a short “how-to” instructional video for the FireLight-enabled product and placed the video on its agent portal. Later, a smooth cutover occurred. “We expected a flood of telephone calls, but that didn’t happen." Today, 80% of applications for the FireLight-enabled Ohio National product are completed electronically. Additionally, the insurer has avoided myriad costs associated with engineering and maintaining an in-house solution. “Developing our own platform would’ve been a considerable investment and required significantly longer to launch." Originally, Ohio National intended to continue migrating other products onto FireLight. But other corporate priorities intervened. Now an effort is under way to move other products to the platform, with some expected to go live by the end of 2014. “Our goal is moving all products onto the platform,” says Leach. “In parallel, we’ve been working on modernizing other business systems to permit straight-through processing. We intend to enable our agents to submit an application electronically and receive an electronically-issued policy the same day.”
"L’olivier Assurances Selects Guidewire Products for Underwriting, Policy Administration, Claims Management, and Billing" September 09, 2014 | Market Watch http://www.marketwatch.com/story/lolivier-assurances-selects-guidewire-products-forunderwriting-policy-administration-claims-management-and-billing-2014-09-09 PARIS & FOSTER CITY, Calif., Sep 09, 2014 (BUSINESS WIRE) -- Guidewire Software, Inc. GWRE, 2.98% , a provider of software products to Property/Casualty (P/C) insurers, today announced that L’olivier Assurances, the French subsidiary of Admiral Group and an auto insurance provider, has selected Guidewire InsuranceSuite™ as its new platform for underwriting, policy administration, claims management, billing, rating, and client data management. L’olivier Assurances has selected InsuranceSuite as the technology platform on which to grow its business. The company sought a stable foundation that would help it deliver superior customer service by enabling them to apply their market expertise for their customers. L’olivier Assurances will be deploying Guidewire PolicyCenter®, BillingCenter, and ClaimCenter concurrently. L’olivier Assurances will be leading the implementation and Guidewire PartnerConnect™ alliance member, Capgemini, and Guidewire will be supporting the project. “One of the key reasons we selected Guidewire InsuranceSuite was because we were impressed with the rich features and completeness of the individual systems that make up the suite. The strength of each system coupled with the benefits of having our core systems on one cohesive platform, including productivity and efficiency gains, was confirmation that InsuranceSuite was the ideal choice to help us meet our needs,” said Toussaint Mathieu, IT director, L’olivier Assurances. “We are looking forward to leveraging Guidewire’s built-in best practices in business processes to help us streamline and standardize our core system operations,” added Mathieu.
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InsuranceSuite will enable L’olivier Assurances to: •
Deliver better customer service due to the ability to handle requests and closing claims files more quickly;
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Increase flexibility for new billing and payment plans;
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Enhance operational efficiency by standardizing policy administration, billing management and claims handling processes on a common platform; and
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Gain real-time visibility into core operations and information to make better business decisions.
“We are honored that L’olivier Assurances has selected Guidewire InsuranceSuite to help them meet their core system transformation goals,” said Keith Stonell, managing director EMEA, Guidewire Software. “We are looking forward to working with L’olivier Assurances and helping them achieve their business objectives and deliver unique customer service.” 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 L’olivier Assurances Launched in 2011, L’olivier is the Admiral Insurance Group's first car insurance company in France. The company aims to offer drivers in France insurance tailored to their needs including attractive prices and high levels of customer service. Admiral Insurance Group, L’olivier’s parent company is a European specialist car insurance that operates in 5 countries (UK, Spain, Italy, USA, and France) through five subsidiaries. For more information, please visit www.lolivier.fr/qui-sommes-nous. 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. NOTE: Guidewire, Guidewire Software, Guidewire ClaimCenter, Guidewire PolicyCenter, Guidewire BillingCenter, Guidewire InsuranceSuite, Guidewire PartnerConnect, Guidewire SolutionConnect, Guidewire Live, Live Inside, Before & After, Claim Canvas, Viewpoint, Deliver Insurance Your Way, and the Guidewire logo are trademarks, service marks, or registered trademarks of Guidewire Software, Inc. in the United States and/or other countries.
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Sun Life launches 'big data'-based benefits planning tool September 02, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/09/02/sun-life-launches-big-data-based-benefitsplanning?ref=rss The U.S. business group of Sun Life Financial Inc. (NYSE: SLF, TSX: SLF) has launched the Benefit Profile, a powerful data analytics decision-support tool that helps brokers and employers design and deliver competitive, appealing employee benefits plans customized to meet the diverse needs of the American workforce. The Benefit Profile uses employer-specific demographics and robust industry benchmark data to develop insights enabling brokers to design and recommend optimal benefits plans and enrollment strategies to employers. “Rising health care costs are forcing employers to find new ways to maintain an attractive benefits package without breaking the bank," said Tom Gilligan, vice president of Sun Life U.S. Distribution Operations. “The Benefit Profile provides brokers a new level of analytical sophistication to help employers adopt the best benefits plan design given the various demographic profiles within their workforce." How it works The Benefit Profile’s big data technology synthesizes an employer's own census data and a broad range of industry benchmarks to provide a straightforward graphic analysis that compares gender, age, and income to benchmarks based on buying patterns reflected in Sun Life policy records, and complemented by well-known industry resources such as Group MarketShare, LLC. Key Features of the Sun Life Benefit Profile: •
Analyzes the demographic composition of a workplace by gender, age, and income.
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Correlates such demographics to incidence rates for medical issues.
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Displays typical demographic buying patterns of relevant insurance solutions; for example, the average life insurance coverage men or women each choose to buy.
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Illustrates typical benefits offerings of competing employers in the same industry and region to help employers gauge how a plan design could support cost containment or recruitment and retention.
“The Benefit Profile turns a wealth of data into actionable insight that is presented in a dashboard format, empowering brokers to deliver a highly customized, versatile benefits plan designed for each employer," said Sun Life’s Bilal Kazmi, AVP, Analytics and Innovations Marketing. "It’s a way for employers to assess demographic risks and provide employees with a customized range of protection options. This innovation helps employers fine tune what’s working, adapt to changes in their industry and region, protect their employees, and stay competitive year after year,” added Kazmi.
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Hypothetical insights •
The Benefit Profile confirms that a fictional metal employer in a Midwestern state offers long term disability benefits plan with a higher salary replacement percentage than the industry and regional average. This insight allows the employer to either promote that detail to current and prospective employees or adjust the plan to create a more affordable option for employees that remains in line with industry peers.
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A broker may know that 30% of an employer’s overall workforce is enrolled in optional life insurance. However, the broker may not know whether a particular demographic of that workforce remains underserved. Segmenting employee participation by age, gender, and income, the Benefit Profile helps identify such a potential group, for example workers earning less than $30,000 annually. This insight could lead to a more focused enrollment and communications strategy targeting certain segments of the employee population.
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A hospital in the Southeast is considering adding new benefits to its benefits program, but is unsure which product to add next. The demographic analysis in the Benefit Profile determines that the workforce contains a high proportion of women and employees over age 40. After reviewing incidence data for a variety of voluntary products within the Benefit Profile, the employer decides that critical illness coverage would be a good fit for its employee population.
As one of the leading stop-loss providers in the U.S., Sun Life is also developing a stop-loss analytical tool to help brokers support self-funded employers, and employers that are considering becoming self-funded.
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Strategy ACE Group expands global market with new division September 15, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/09/15/ace-group-expands-global-market-with-newdivision In an effort to help growing companies expand their services to more jurisdictions, ACE Group launched a division that will help in underwriting and other legal services. The division, called ACE Risk Management Global Casualty, is a one-stop shop for small companies along with larger multinational groups for credit, actuarial and claims services that merged two existing divisions, ACE Risk Management and ACE Foreign Casualty, into the services of one. “As companies of all sizes continue to grow and expand their operations globally, the foreign exposures and risks they face have never been greater or more difficult,” said Chris Maleno, Division President of ACE USA. “We are positioned to provide a robust suite of programs that are innovative and well-aligned with our customers’ needs, such as our distinctive master general liability policy that insures domestic and global exposures to reduce coverage lapses and streamline service delivery.” Through the new division, clients in nearly 200 countries will be able to customize their coverage and take part in many of ACE’s technology solutions including: •
ACE Advantage, a specialized international package of insurance for U.S.-based companies, nonprofit organizations and educational institutions that have employees or volunteer workers who travel, work or sell products overseas, or that have locations outside the U.S.
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ACE Atlas CMPSM, a customized insurance and risk management solution for U.S.-based corporations and multinationals with large or complex operations and exposures outside the U.S. Solutions include U.S. Controlled Master Program policy with admitted local policy placement(s), flexible program structures, and tailored risk transfer options.
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ACE Cash Flow, a comprehensive risk management program, services and specialty products to ultimately meet and safeguard the needs of large U.S. multinational companies.
AIG Celebrates Expanded Operations, New Jobs in Kansas September 12, 2014 | Claims Journal http://www.claimsjournal.com/news/midwest/2014/09/12/254600.htm American International Group Inc. (AIG) held a ribbon cutting and grand opening of its expansion in Olathe, Kansas, this week, which will bring 300 new jobs to Kansas by the end of 2015. Gov. Sam Brownback and AIG President and Chief Executive Officer Peter Hancock joined officials from AIG, the University of Kansas (KU) and the city of Olathe at the ribbon cutting
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“AIG is committed to adding 300 new jobs in Olathe by end of 2015, recognizing the crucial role that the people in our operations here play in the broader success of AIG. The expansion of this facility reaffirms our commitment to expand in the greater Kansas City area and to serving our customers around the world with excellence,” said Peter Hancock, president and Chief Executive Officer, AIG. AIG’s expanded facility at17300 West 119th Street will provide claims and policy servicing operations in the U.S. and around the globe. The company currently employs more than 600 workers at its offices in Olathe. AIG’s expansion in Olathe is supported by its work with KU, which includes a strong research partnership. The research partnership originated in the School of Business and has expanded through a university wide Master Research Agreement. In addition, AIG has partnered with the School of Business to provide leadership training to AIG’s managers. The collaboration also has provided students, faculty and staff with opportunities to learn valuable information from AIG executives. Furthermore, as a hiring partner, AIG provides new career opportunities for the university’s students and alumni. “KU has a mission to educate leaders, build healthy communities, and make discoveries that change the world,” said KU Chancellor Bernadette Gray-Little. “This relationship with AIG enables us to advance each aspect of that mission and find new ways to grow the economy, create jobs, and bring exciting new products and services to the market. In addition, this comprehensive partnership with AIG – which includes a master research agreement, leadership training, and opportunities for our students – is a model for how we want to partner with companies in the future.”
Allstate bets on timber, property to boost annuity returns September 11, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/09/11/allstate-bets-on-timber-property-to-boostannuity?ref=rss Allstate Corp. is betting on timber and real estate to boost returns at a struggling annuity unit. “We do need to figure out what we do with our annuity business,” Chief Executive Officer Tom Wilson, said at an investor presentation yesterday. “It’s still not where we’d like it to be on a longterm basis, so we’re investing a little differently there.” Allstate, the largest publicly traded U.S. home-and-auto insurer, has been retreating from annuities as low interest rates weigh on results. The company agreed last year to divest a life-and-retirement operation called Lincoln Benefit Life Co., after selling its variable-annuity operation to Prudential Financial Inc. in 2006. Wilson said Allstate has been harmed by reinvesting funds from maturing investments at lower interest rates. In annuities, insurers profit when investment returns exceed the promised payouts to policyholders. Allstate said in its annual report that investment returns on immediate fixed annuities exceed customer payouts by 0.9 percentage points. The company will benefit when rates eventually rise, Wilson said today. “In the meantime, we’re putting more money into alpha investments,” Wilson said. “We’re investing in things like timber and some real estate.”
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Allstate advanced 12% this year before today, beating the 7.6% gain of the Standard & Poor’s 500 Index. The company has benefited from selling homeowners’ coverage and car insurance, where results are less linked to interest rates. MetLife Inc., the largest U.S. life insurer, gained less than 1% this year through yesterday while No. 2 Prudential was down about 4%. ‘Muted’ Response XL Group Plc and CNO Financial Group Inc. are among insurers that have made deals this year to exit obligations tied to life or retirement contracts as the companies work to narrow their focus. Randy Binner, an analyst at FBR Capital Markets, said in a note to clients today that such divestitures got a “muted” response from investors who focused on the loss of assets at the selling companies. Allstate has no immediate plan to exit the annuity operation, “given that we’re at the low point in the interest-rate cycle,” Wilson said. “When rates go up, we’ll reinvest and that should increase margins.”
Willis Re expands Florida presence September 10, 2014 | Property Casualty 360 http://www.propertycasualty360.com/2014/09/10/willis-re-expands-florida-presence?ref=rss Willis Re is continuing to expand its reinsurance presence in the North American market by opening a new operation in Tampa, Fla. The new location will provide an on-the-ground presence to serve Willis Re clients and engage with prospective clients in Florida. Ken Vincent, executive vice presidnet, will lead the Tampa office. Vincent previously spent more than 15 years with Willis Re in Minneapolis. Joining Vincent at the new office will be Ian Hanson, treaty analyst, who also comes from Minneapolis, as well as a number of other Willis Re professionals. "Willis Re has historically maintained a significant presence in Florida, with a number of domestic clients," says Vincent. "Our team of reinsurance professionals knows this market well and our new operation will help us to capitalize on our existing strengths in the area."
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