Software makes it easier to handle insurance programs; computers are a valuable tool for handling casualty coverage and workers' compensation.
Computers are a valuable tool for handling casualty coverage and workers' compsation.
Insurance and risk management rank high in any management thinking. That's because they take a big bite out of a budget, and the cost of wrong or inadequate coverage can be many times larger.
For years, businesses had to rely on experts for advice on what coverage to buy, and they often hired consultants to administer their programs. To be sure, many organizations still use consultants, but now they have another option: computer programs that not only handle the routine claims management but also provide the data needed for management to decide what programs to buy, whether to self-insure and other difficult questions.
Risk-management software can tackle varied tasks such as
* Helping to track and control claims and expenses. The clerical operation of tracking claims has always required extensive paperwork. But now the task has been simplified by computers and cost savings in risk management can be identified. The primary controllable costs are for legal work.
* Keeping management informed about the loss and claim status and providing a constant reminder of safety awareness. Because risk-management administration creates a blizzard of paperwork, management has often been unable to identify ways to cut costs or to recognize where safety efforts need special emphasis. Computer software provides that opportunity.
* Providing the information needed to buy the right risk-financing options at the right price. Computers are a convenient place to store and organize the vast amount of information required to administer a wide assortment of coverage-for property, products, directors' and officers' liability, etc.-and information on loss experience. The software analyzes the data so management can decide what programs it needs and determine each policy's cost-effectiveness.
The analysis is especially valuable when management goes out for bids on new programs, because it provides the specific details on which - bids are calculated; as a result, management knows each insurer's bid is based on the same facts and is formatted conveniently for insurance companies. With a complex product such as risk coverage, an assurance of uniformity is important.
The information also provides guidelines on whether an organization should self-insure or how much of a deductible to take.
* Allowing management to zero in on problem areas. By keeping a diary of all accident or loss incidents, the software can track and identify places requiring remedial safety attention and can flag places where losses are anticipated.
Prices for risk management software programs range from under $1,000 to more than $500, 000. The following are among the leading vendors offering computer-based systems for administering risk-management coverage, which includes workers' compensation:
Anistics 220 East 42 Street New York, New York 1001 7 Telephone: (212) 972-9600
Custom personal-computer applications:
This software can be customized to track policies, claims, exposure, certificates and contractors. It also provides litigation and property management. The price starts at $10,000.
Phased approach to risk-management information system: This product, designed to do all the above plus provide underwriting information and cost-of-risk allocation, can be customized for any size computer. It provides requirements analysis $10,000-$35,000), independent evaluation of proposals $4,000-$8,000), systems specifications $5,000-$80,000) and implementation ($25,000 and up).
California interactive Computing
8550 Balboa Boulevard
Northridge, California 91325
GenComp: This software administers workers' compensation claims.
GenPac: This is for property and casualty claims administration.
GenMed. This program is for group medical claims administration.
GenRisk: This software package is for risk management.
Prices for each package start at $79,500. GenView, a bundled package including all the software, starts at $250,000. The soft ware needs at least a 386 computer to
Cantor & Co.
9348 Civic Center Drive
Beverly Hills, California 90210
Telephone: (213) 859-7277
Analytical System: This family of products contains three modules, which can be bought separately. The loss development program costs $1,500; the loss forecasting program costs $1,500; and the risk financing program costs $1,995. The bundled price is $3,995.
Claims Management System: This program covers property-casualty risks, workers' compensation and vehicle liability. The price, depending on use, ranges between $9,500 and $37,500. A trimmed-down version, priced under $5,000, will be introduced soon.
1212 Ross Street
P.O. Box 31780
Amarillo, Texas 79120
Telephone: (806) 376-4223
CS ONLINE. This program is run on a service-center, time-shared mainframe. it handles all property-casualty coverage, including financial risk, safety and claims, policy management, legal and reinsurance tracking, cost-of-risk allocation, coverage verification, property inventory and bonds and certificates of insurance management. The cost varies depending on size and system selected.
CS PRISM/MIDRANGE: This program provides the same service as CS ONLINE but runs on a client's IBM AS/400. The cost range is $50,000 to $500,000.
CS PRISM/MAINFRAME: This program provides the same service as CS ONLINE but runs on a client's IBM 3090. The cost range is $250,000 to $1,000,000.
CS PLUS Managed Care: This program handles workers' compensation medical cost management on either a PC or an IBM AS/400 or 3090. It's also available through CS ONLINE and CS PRISM. Depending on application, costs are between $20,000, plus per-line-bill charges, and $500,000 for a PRISM installation.
CS TeleClaim: This program establishes a toll-free number for receiving accident reports and then produces all required paperwork for workers' compensation, crime claims and general, product, auto and property liability. The cost range is $13,000, plus per-claim charges, to $50,000 for PRISM installations.
CS Disability Management. The program works on a PC and produces all the documentation for handling disability cases. The price range is $20,000 (plus per-claim charges) to $100,000 for a PRISM installation.
CS Risk Management Executive System s program runs on a PC and produces executive-level summaries of risk data. The cost varies, depending on customization.
CS FORESTAR: This program runs on a PC and provides forecasting, statistical and actuarial functions. The price range is $6,000 to $15,000.
1 Sansome Street
San Francisco, California 94104
Telephone: (415) 362-4555
CompPlus: This workers' compensation software includes all state and federal reports, forms and medical fee schedules. The price depends on the number of users and claims; the usual fee starts at about $25,000.
P&CPlus: The product is designed for property, casualty and liability insurance management.
The price is $25,000, and bundled prices are available.
IncidentPlus: This new program is designed to track individual incidents that may result in claims, such as injuries, hospital visits, losses, etc. The price is $10,000, and a stand-alone version for PCs is available for $10,000.
Dawn Technology Group
38705 Seven Mile Road
Livonia, Michigan 48152
Telephone: 3T3) 462,5800
Riskmaster. This program provides complete claims and risk management for all coverage. It runs on PCs and larger machines. Prices start at $8,000. Riskmaster CM19000: This program provides fee-scheduling management and runs on PCs and up. Prices start at $7,500.
Helmsman Management Services
225 Borthwick Avenue
Portsmouth, New Hampshire 03801
Telephone: (603) 431-1181
Risktrac: The software comes in two formats: for time-sharing and for PCs. Both contain claims management functions and decision-support tools (including loss forecasting).
The time-share product alone contains a customizable report. Time-share prices are variable, depending on use and services ordered. First-year costs average $25,000 (including on-site training). The PC price is $5,000.
Seligman information Systems
234 Garden Street
Roslyn Heights, New York 11 577
Telephone: (516) 484-5177
ACCESS: This is a risk-management program for claims tracking and processing. The price is $7,000.
CTRACK. This product tracks certificates of insurance received by a company. It's priced at $695.
ADVANCED CTRACK. This software automatically verifies that certificates meet an organization's insurance requirements. The price is $1,190.
CERTS: This program is for organizations that issue large numbers of insurance certificates. The price is $1,190.
All products run on PCs.
Travelers Risk Management information Services
1 Tower Square
Hartford, Connecticut 06183
Telephone: (203) 277-6943
Carma System: This risk-management system handles claim data from all insurance carriers. It provides claim and financial analyses, loss control, forecasting and development; it also handles medical management reports and provides historical analyses. The program runs on the vendor's mainframe. It uploads data from clients' PCs and then downloads the analyses to the clients' PCs. The price is 55,000.
PC Carma: This program is the same as the mainframe version but it is reconfigured so it can run on clients' PCs. Prices vary, depending on configuration, from 5,000 to $13,000.
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|Author:||Tweedy, David A.|
|Publication:||Journal of Accountancy|
|Date:||Sep 1, 1991|
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