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What’s New: In brief (June 01, 2005)


June 1, 2005   by Canadian Underwriter


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Computer Sciences Corporation (NYSE: CSC) recently announced that annual studies conducted by Celentm – global financial services information technology (IT) research and consulting firm identify CSC as a dominant provider of insurance software. This is the second consecutive year Celent’s Insurance Software Deal Trends studies cited CSC as a leading provider for property and casualty (P&C) software based on number of contracts signed. CSC led the “full policy administration systems” category and was among the top three leaders in the “focused claims solutions” category. In addition, CSC was one of the top three leaders in the “P&C insurance underwriting systems” category. For more information about Celent’s Insurance Software Deal Trends 2003-2004 report http://www.celent.com.

Under an auto insurance proposal recently announced by Massachusetts Gov. Mitt Romney, auto insurers may soon have to provide up to a 5% discount to drivers with clean records however, insurers will also be able to set other rates up to a cap of 15% on liability coverage. Other changes would help remove costs from the system and fund the $150 million rate rollback for good drivers, according to Romney. Some alternate charges include an increase in claims threshold for personal injury from $2000 to $4000, a cap on non-medical visits and the introduction of a fee schedule to reimburse medical providers. The proposed rollback reflects statistics indicating that 64% of all drivers in Massachusetts have clean driving records and could therefore benefit from average savings from US$52 to US$119. Good drivers would, by mandate, receive the 5% discount for the first year of the plan but after insurers can discount good drivers up to 6% to 10 %. The cap is set at 10% in the fourth year of the plan, no required good driver discount would be required. This plan may, according to Romney, will allow the auto insurance market to begin relying on competition to set prices by the final year.


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