The Insurance Tech Guru

Change is not a surprising thing in the world of technology (in fact, it is what we expect), but the really big surprise in 2006 was that our traditionally sleepy-eyed industry finally awoke from its near comatose state to sit up and take notice of what could be some critical developments.

Recently, the Guru had the disquieting experience of attending the business launch for Microsoft's new Windows Vista Operating System. The event, held at a large New York hotel, attracted a virtual mob. Sad to say, even the Guru's inimitable status did not save him from having to wait in a block-long line outside in the frigid elements just to get in for the initial presentation.

In the insurance technology world, there has also long been a traditional white-hat/black-hat relationship between agents and carriers when it comes to the nagging issue of single-entry multiple-company interface (SEMCI)—or “real-time” transacting, as we know it today. Technology to allow independent agents (our heroes) to transact with multiple carriers from a single entry has existed for some time. But the carriers (our villains) have insisted instead on proprietary systems that require re-keying of data by agents for submission to multiple insurers.

SAN ANTONIO--How do you explain that a technology conference offers excellent sessions and a warm weather location during one of the coldest times of the year, yet the show's exhibit floor is virtually empty?

Do you even remember what AUGIE is? Do you care?

A recent article in InformationWeek points out that Tata Consultancy Services, an Indian outsourcer doing business in the insurance industry, is in talks with Boeing and Lockheed Martin for pieces of the defense and aerospace contracts held by those companies. Needless to say, this means that U.S. defense and aerospace secrets could well be part of what IT people see in India or other outsourcing sites.

Yes, I know I just wrote something about this, but did I mention that protecting intellectual property isn't exactly a top priority in far flung countries?

Linux, Windows, DOS... or What?

At the recent Celent Insurance CIO Panel, Analyst Matt Josefowicz noted that when it comes to insurers migrating away from legacy systers, Linux is becoming a more important element, along with Windows.

Anyone who's paying attention can see that Microsoft's new Vista operating system isn't exactly jumping off the shelves to consumers, so it seems even more puzzling that the software giant is putting a five-year cap on support for the OS.

A recent Information Week article notes that outsourcing will cease to be profitable by 2027 due to rising IT salaries in third-world countries, but what makes people think this debate is only about money?

OK, I admit it. I've had it with tech support people who can't speak English or who speak it so badly that they might as well be speaking a foreign language.

At the recent AMS Users Group National Conference, the group awarded its 2007 Quantum Award to Selective Insurance of Branchville, New Jersey. According to AMSUG, "This prestigious honor is given to companies who create technology that enables agents to make a quantum leap in productivity and profitability." That's great, but what about the hundreds of insurance companies who don't make tech easier for agents? You know, the real silent majority.

Blogger Gail Hurd suggests that there might be another reason for the disconnect between insurers and technology vendors--namely, vendor incompetence...

For at least the last five years or so, pundits, nerds and other assorted technophiles have been asking when the insurance industry will be “ready” to embrace wireless mobile technologies in its day-to-day operations.

NASA reports in its newsletter that, far from being a display of nature’s fireworks alone, lightning actually produces gases—and some of those gases may have an effect on (gulp!) global warming!

When I look back on the long and, really, rather mundane history of technology in the insurance industry, one glaring fact leaps out at me—when it comes to upgrading technology or trying something new in the tech realm, we are far from enterprising or adventurous.

A recent survey of P&C insurers by Fiserv indicates that when it comes to technology, carriers are most concerned about things like core systems, agency interface, billing and claims, and business process management. That's all well and good, but what I find shocking is that "data security" is missing from the list.

The end may be near!.... Or maybe not

Reported results from a recent Canadian study of the long-standing battle between business and Information Technology Managers have started me thinking about why this is a battle at all—not to mention why it seems to never abate.

According to the study—by Info-Tech Research Group and KnowledgeStorm—the problem is that IT managers’ “tech talk” baffles business managers and fails to communicate IT imperatives.

Few technology concepts have been hyped more and delivered less to the insurance industry than customer relationship management, also known as CRM.

A recent article from Computerworld reports that online broker TD Ameritrade may have been warned about a security breach a year or more before it publicy acknowledged the problem and warned those customers who might be affected.

The secret committee that hands out the Nobel Prize has awarded the Peace Prize to Al Gore, a decision that makes no sense in so many ways.

We all know that insurance is hardly on the cutting edge of technology, but why would we be surprised at that when, for the most part, insurance companies don't trust technology vendors?

A recent article in Computerworld warns that if criminals targeted unsecured wireless routers, they could create an attack that could play out across thousands of Wi-Fi networks in urban areas. Normally, such a threat would be nothing to sneeze at, but given the miniscule adoption of wireless technology in our industry, I would hold off on massive doses of vitamin C.

Maybe you've seen those commercials where some worker has many little clones of himself that do various tasks simultaneously--all in the name of multitasking. Now, it may surprise, or even shock some of you that I would say this, but “multitasking” is a highly overrated characteristic in this day and age.

A recent article in Computerworld quotes a software industry group representative as saying that immigration reform will be required in order for the industry to continue its strong economic performance in the United States.

As someone who deals with language and its vagaries on a daily basis, I am sometimes amazed at the way certain widely-used terms creep into—or unexplainably flee from—the vernacular.

The March 17 issue of Computerworld reports that Microsoft Chairman Bill Gates asserted before Congress recently that U.S. companies may lose jobs if they can't bring in "world-class engineers" from abroad via more H-1B visas. That begs the question: What's wrong with U.S.-based engineers?

When strong wind gusts knocked out power to the Reno-Sparks Convention Center on April 14, attendees at the AMS Users’ Group National Conference had every right to complain, but even after some additional body blows from Mother Nature, agents and other guests refused to give up the ghost.

Competition to sell technology in the insurance industry is fiercely intensifying, as more players enter the fray and the specter of recession-induced cuts in IT budgets looms on the horizon.

When considering the vendor-dominated steel cage match that the ACORD LOMA Systems Forum has become, however, it’s always a good idea to keep an eye on what the big dogs are doing.