Insurance Networking News: Executive Strategies for Technology Management articles from June 2002

Insurance Networking News: Executive Strategies for Technology Management archives from June 2002

The Domino Effect @BY # Frank Cerne.(Brief Article)(Statistical Data Included)(Editorial)
June 1, 2002... The insurance industry is at a defining moment in its history. Competition from financial services companies, coupled with a dramatic rise in operating losses, is draining carriers' reserves. And, when you add consumers' willingness to shop for...

Financial News: P&C Industry Net Loss For 2001: $7.9 Billion.(property and casualty insurance)(Brief Article)(Statistical Data Included)
June 1, 2002... The property/casualty insurance industry suffered a $7.9 billion net loss after taxes in 2001-the industry's first-ever net loss for a full year and a sharp swing from the $20.6 billion in net income in 2000, according to a report by Insurance...

Safeco Corp.(includes financial figures)(Brief Article)(Statistical Data Included)
June 1, 2002... Seattle-based Safeco Corp., battling financial problems, recently reported first-quarter income before charges of $47.8 million, compared with income before charges of $12 million for the same quarter last year. Operating income was $43.5...

Corporate News: State Farm Stops Writing New Policies In Two States.(homeowners insurance; Arizona, California)(Brief Article)
June 1, 2002... Faced with widening losses in recent years, State Farm Insurance Cos., Bloomington, Ill., has placed a moratorium on writing new homeowners insurance policies in Arizona and California. The move will have no impact on current homeowners...

Union Activity.(Brief Article)
June 1, 2002... A former Allstate agent-whose contract was abruptly terminated by the Northbrook, Ill.-based carrier-is now leading an effort to unionize Allstate agents. Allstate exclusive agents have no say when the company considers changing their...

St. Paul to Transfer Reinsurance Operation.(Brief Article)(Statistical Data Included)
June 1, 2002... The St. Paul Companies plans to transfer its ongoing reinsurance operations to a newly formed Bermuda-based reinsurer, Platinum Underwriters Holdings Ltd. Furthermore, Platinum intends to offer to the public 75.1% of its common shares,...

Billions Shift From Bad To Good.(financial service industry ratings)(Brief Article)(Statistical Data Included)
June 1, 2002... In the last five years, $800 billion in value has shifted between 'bad' and 'good' performance segments in the $4,300 billion global financial services industry according to Oliver, Wyman & Co.'s Shareholder Performance Index (SPI). Good...

Pacificare.(Pacificare Health Systems Inc. case)(Brief Article)
June 1, 2002... PacifiCare Health Systems Inc., Santa Ana, Calif., has reached an agreement with the U.S. Office of Personnel Management (OPM), the U.S. Department of Justice and a private individual to settle disputes and a qui tam lawsuit under the False...

John Hancock Units Sue Enron, Andersen Officers, Directors.(John Hancock Financial Services Inc.)(Brief Article)
June 1, 2002... Three units of John Hancock Financial Services Inc. have filed a class-action lawsuit against 27 officers and directors of Enron Corp. and against Arthur Andersen, seeking to recoup losses on $215 million in Enron investments. The suit,...

INDUSTRY RESEARCH: Claims Service Affects Purchasing Decisions.(Brief Article)
June 1, 2002... Even though claims service provided by property/casualty insurance carriers represents a major factor in their ability to retain customers and attract new ones, insurers are not providing the level of service that is considered acceptable to...

TECHNOLOGY SPENDING: Insurers Proceed Slowly With CRM.(customer relationship management)(Brief Article)
June 1, 2002... While the downturn in the economy has slowed strategic IT spending across financial services, insurance companies that have committed to new customer relationship management (CRM) strategies have not slammed on the brakes. But they are...

Newsline Digest.(includes brief articles)(Brief Article)
June 1, 2002... Manulife Signs 10-Year Deal With IBM Toronto-based Manulife Financial Corp. signed a 10-year, $563 million technology agreement with International Business Machines Corp. (IBM). Under the agreement, Armonk, N.Y.-based IBM will manage...

New Products.
June 1, 2002... RATING ENGINE Agoura Hills, Calif.-based Fiserv FSC Inc., a unit of Fiserv Inc., has released its multistate Gateway FSC Internet personal lines rating engine. Gateway FSC is designed for insurance companies, financial institutions,...

Alliances.
June 1, 2002... Toronto-based The Manufacturers Life Insurance Co. has teamed up with CNN/Money Online to add investment information and educational content to its Web site, www.manulife.com/usa, for participants in 401(k) plans. CNN/Money Online is jointly...

E-Business Efficiency From 'A' To Zurich.
June 1, 2002... Once a senior engineer in the defense industry, Zurich North America's Rich Waller is eager to leverage his e-business skills to "defend and extend" Zurich's property/casualty business lines. Over the past few years, many financial...

Convergence: Slowly, But Surely.
June 1, 2002... Insurance companies, banks and brokerage firms are actively competing for new business on each other's turf. But financial services convergence in a true sense is progressing at a tortoise-like pace: slow and cautious. When Citicorp...

Agents' Role Remains Critical.(Brief Article)
June 1, 2002... Deregulation of the financial services industry through the Gramm-Leach-Bliley Act of 1999 has the potential to stimulate a structural transformation, but whether one-stop shopping will succeed is still uncertain. Not only is the industry...

Thought-Provoking Technology.
June 1, 2002... HNC is widely recognized as a leading developer of analytic and decision-management tools. But are carriers ready to turn their important underwriting and claims decisions over to machines? The similarities between fighting terrorism and...

At A Glance.(HNC Software Inc.)(Brief Article)(Company Profile)(Statistical Data Included)
June 1, 2002... * Headquarters: San Diego * Founded: 1986 * Employees: 1,100+ worldwide * Products: Consists of the HNC Critical Action Technology platform and three suites: Efficiency, Risk and Opportunity. The Efficiency Suite helps companies...

Will the Merger Make a Difference?(Fair, Isaac & Co. Inc., HNC Inc.)(Brief Article)
June 1, 2002... HNC Inc.'s decision to be acquired by Fair, Isaac & Co. Inc. surprised many industry observers, even though most agree that the two companies have complementary technologies. Indeed, some experts say the merged company, which will assume the...

Achieving More With (Wire)Less: Despite some compelling features, concerns about functionality combined with a poor economy have carriers thinking twice about wireless investments.
June 1, 2002... Similar to many insurance providers, Omaha, Neb.-based Jefferson Pilot Benefit Partners knows that field sales representatives were assigned their title for a reason. The emphasis on "field" provides them license to network away from the home...

Wireless Access To Agent Extranets.(Brief Article)(Statistical Data Included)
June 1, 2002... P&C Life Current Support 0% 12% Support by year-end 2002 9% 16% No plan for support by year-end 91% 72% Note: Study was based on responses from 102 P&C and life...

Contracts.(Brief Article)
June 1, 2002... The Contracts Update section includes announcements of contracts insurance information technology companies have signed with customers in recent weeks. Contract news can be faxed to Insurance Networking magazine at (312) 913-1366 or by...

Convergence: Not A Revolution.
June 1, 2002... Deregulation alone has not spurred the convergence in financial services. Growing capital markets, improving information technology and increasing competition will likely have a bigger impact. The convergence of financial services...