Ads by TechWords

See your link here
Receive the latest technology news and information.
Computerworld Daily News (First Look and Wrap-Up)
Computerworld Blogs Newsletter
The Weekly Top 10
Cloud Computing
View all newsletters




Privacy Policy
 

Insurance Carriers Move to Crumple Paper Processes

St. Paul, AIG and The Hartford among companies moving to the Internet

April 2, 2001 12:00 PM ET

Computerworld - Several insurance industry powerhouses are stepping up efforts to cut paper from their operations with a range of Web-based projects that are also designed to cut costs.








Insurance IT To-Do List

What technology are you investing in?




















Claims reporting systems: 54%

Communications tools: 52%

Productivity tools: 52%

24/7 call centers: 36%

Online claim filing: 20%

Online status checks: 2%

Base: Survey of 50 auto insurers Source: Forrester Research Inc., Cambridge, Mass.

The St. Paul Cos. in St. Paul, Minn., and American International Group Inc. (AIG) in New York have both gone live with a Web-based XML application process developed by one of their insurance brokers, InsureHiTech.com in Princeton, N.J. InsureHiTech was inspired to automate the previous time-consuming paper-based process after catching the technology bug from its high-tech business customers, said Rick Maloy, the company's president and CEO.


Customers, their insurance agents or both fill out an electronic form that InsureHiTech's back-end system sends as an XML e-mail to the carrier's server, according to Maloy.


"No humans have to touch it," Maloy said. "It drops directly into their rating and policy management system, so there's no rekeying."


Easy Quotes


The technology will make quote preparation and delivery more efficient and increase customer satisfaction, said Christopher Sparro, president of the middle market and commercial units at National Union Fire Insurance Co. in Pittsburgh, an AIG member company. However, he was unable to provide any specifics about expected cost or time savings because the process is so new.


In addition to the XML-based system that InsureHiTech has pioneered, AIG has implemented a Web-based interface for agents.


"It allows us to generate quote letters, to qualify our accounts, quote and bind policies, all online," Sparro said.


St. Paul is using the technology for property, general liability, errors and omissions, biotechnology product liability and clinical trial coverage policies.


It took only a couple of months for St. Paul Cos. to tie into the InsureHiTech system, said Jon Farber, underwriting director at St. Paul Technology, a division of St. Paul Cos. But despite the progress InsureHiTech is making, the average broker won't be fully automated for at least five more years, said Eduard Cecere, an analyst at TowerGroup in Needham, Mass.


"There's the disparate nature of sophistication in technology at these agents and brokers," he said. "You've got a wide spectrum of actual configuration. You've got agents just getting online and some still using ledger books."


The carriers also have to be ready to accept electronic transactions, and not all of them are, Cecere said.



Jump to comments

Financial

Additional Resources

WHITE PAPER
Approximately 60 percent of data migration projects overrun time or budget, while some fail completely. Download this white paper, "Enhancing Your Chance for Successful Data Migration," to learn the critical steps you need to take to execute a data migration project with minimum cost and risk to your business.
WHITE PAPER
Read the Gartner research note to learn why the TCO of a server-based computing deployment used to deliver all applications to users is around 50% lower than that of an unmanaged desktop deployment.
WHITE PAPER
Economic downturns have a tendency to accelerate emerging technologies, boost the adoption of effective solutions, and punish solutions that are not cost competitive or that are out of synch with industry trends. This IDC White Paper presents the results of an IDC survey of 330 companies in Western Europe, Asia/Pacific and the Americas that measures the receptiveness to Linux and takes into consideration changing views driven by the disruptive economic environment that businesses face today.