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Insurance: Insurer Integration Key To Competition

Companies turn to Web services and document imaging to increase efficiencies.
The insurance industry is doing more with less, while striving to compete in an ever-competitive environment. Technology plays a central role, Allstate's Brune says. Her company has been working to improve the efficiencies of its applications and is implementing "enterprise command centers" to monitor incident management, problem management, and more than 20 mission-critical applications around the clock.

"This started when we first exposed ourselves to the Web," Brune says. Allstate uses Computer Associates' TNG network and systems management to ensure the availability and performance of about 20 of its critical applications. Brune says she uses Unicenter to monitor the applications involved throughout a transaction. "When you're watching all of the pieces and the parts of an application, your mean time to repair goes down, and you get a very clear way to get systems back up and running," she says. "It's just a better way to run your business."

Brune hopes this type of vigilance will help the company do a better job of managing its Web services as they're rolled out. "Whether anyone believes it or not, Web services aren't as easy as they're sometimes made to sound," Brune says. "But they're easier than the old point-to-point solutions."

INDUSTRY LEADERS
Rank Company Revenue in millions Income (loss)
in millions
IT
employees
13 HIP Health Plan of NY $2,899 $178 242
25 Aetna Inc. $19,879 ($2,523) 2,450
42 Ohio Casualty Group $1,703 ($1) 333
45 Anthem Inc. $13,282 $549 2,335
50 Cincinnati Financial Corp. $2,843 $238 450
60 Guardian Life Insurance Co. of America $7,192 ($283) 525
72 Blue Cross Blue Shield of Massachusetts $4,043 $99 162
80 Principal Financial Group $8,823 $142 2,117
91 Progressive Corp. $9,294 $667 2,520
121 Cigna Corp. $19,348 ($398) 3,600
138 Hartford Financial Services Group Inc. $15,907 $1,000 3,300
152 American Family Insurance Group $5,307 $58 1,025
161 Northwestern Mutual $16,024 $158 1,050
173 Farmers Group Inc. $2,766 $683 1,300
186 Humana Inc. $11,261 $143 1,226
194 Tufts Associated Health Plans Inc. $2,000 -- 240
215 Aflac $10,257 $821 409
221 Blue Cross and Blue Shield of North Carolina $2,903 $76 525
226 Allstate Insurance Co. $29,583 $1,134 3,641
231 Antares Management Solutions -- -- 470
240 Minnesota Life Insurance Co. $1,700 $4 442
245 Nationwide $12,858 -- 3,795
253 Allmerica Financial $3,317 ($306) 490
281 Health Alliance Plan $1,100 -- 139
285 The MONY Group Inc. $2,095 ($23) 258
288 Horizon Blue Cross Blue Shield of NJ $4,098 -- 324
290 New York Life Insurance Co. $13,702 $1,016 1,350
291 Highmark $7,423 ($83) 1,700
332 Capital BlueCross $1,253 ($35) 290
340 Pacific Life Insurance Co. $3,816 $215 450
369 Transatlantic Holdings Inc. $2,616 $169 27
394 Empire BlueCross BlueShield $4,628 $377 275
411 Jefferson-Pilot Financial $3,480 $475 350
412 Chubb & Son Inc. $9,140 $223 1,620
416 Oxford Health Plans Inc. $4,963 $222 406
422 American United Life Insurance $1,183 $9 240
425 Converium $3,406 $107 287
435 PacifiCare Health Systems Inc. $11,157 $141 289
499 Highmark Life & Casualty Group -- -- --
Financial data is from public sources and company supplied.
Revenue is for latest fiscal year.
Employee data is from InformationWeek 500 qualifying survey.

SNAPSHOT
INSIDE COMPANIES
Average portion of revenue spent on IT 3%
Average percentage of industry applications and business processes that have Web-based front ends 41%
Companies with real-time business processes in place 68%
HOW COMPANIES DIVIDE THEIR IT BUDGETS
Hardware purchases 16%
Services or outsourcing 15%
Research and development 3%
Salaries and benefits 34%
Applications 21%
Everything else 11%
INDUSTRY FINANCIALS
Average year-over-year revenue change 4%
Average year-over-year net income change -49%
DATA: INFORMATIONWEEK RESEARCH
See year-over-year shifts in business-technology practices for this industry. Compare and contrast this year's data with last year's.

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