Accenture Completes Implementation of Claims Solution at Affirmative Insurance

Accenture (NYSE: ACN) has completed the implementation of Accenture Claim Components Solution at Affirmative Insurance Services, a distributor and producer of personal non-standard automobile insurance and a subsidiary of Affirmative Insurance Holdings, Inc.

The new claims system, which replaces Affirmative's former claims system, is part of Affirmative's broader IT transformation program to upgrade, streamline and enhance its core processing systems. Accenture Claim Components Solution is a robust Web-based technology designed to help insurers - ranging from the world's largest to smaller, niche carriers - improve the efficiency of their claims-handling operations through the automation of routine tasks. The solution supports Affirmative claims transactions from first notification of loss through final payment.

"This solution reflects our continuous commitment to innovate and improve our customer service and claims-handling performance," said Wilson Wheeler, senior vice president and chief claims officer at Affirmative Insurance. "Given the robust functionality of Accenture Claim Components Solution, we were able to rapidly configure and deploy the solution with minimal impact on our business. This implementation marks a major milestone in our effort to achieve claims excellence."

The Affirmative implementation represents the first application of Accenture Claim Components Solution within the non-standard auto insurance market, which covers drivers who have difficultly obtaining insurance from standard insurance companies due to their driving record, their lack of prior insurance or other factors.

"Claims service expectations are evolving, and today's insurance customers are simply demanding more from their carriers," said Michael Costonis, Accenture's North America insurance practice managing director and head of global claims services. "Leading insurers -- from specialized carriers like Affirmative to multi-line global companies -- recognize that the ability to satisfy those expectations and secure their competitive positioning depends upon the rapid and cost-effective implementation of a high-performing claims infrastructure."

Accenture Claim Components Solution, used by five of the top 10 U.S insurance carriers and several of the largest insurers in Europe, helps process approximately one-third of all property and casualty insurance claims in the United States.

In addition to the license of the Accenture Claim Components Solution, which is built with Microsoft .Net 2.0 technology, Accenture is providing outsourced application maintenance and infrastructure services to Affirmative under a broad information technology transformation initiative the insurer began in late 2006.

About Affirmative Insurance Holdings

Affirmative Insurance Holdings, Inc. is a distributor and producer of personal non-standard automobile insurance policies to individual consumers in highly targeted geographic markets. Affirmative currently offers products and services in 13 states, including Louisiana, Texas, Illinois, California and Florida.

Insurance Marketing Podcast Explores What's Driving Consumers Shopping for Coverage

The latest edition of the Insurance Marketing Podcast features an interview with Jeremy Bowler of J.D. Power and Associates on how customers' attitudes toward insurance-coverage shopping are changing, along with the sources of information they rely upon to make insurance-buying decisions.

A step-up in marketing, particularly by auto insurers, means policyholders and candidates are being tempted in new ways, Bowler said. The focus for many insurers' marketing efforts--and even their target audience--is changing.

"The insurance industry has been blessed by phenomenal retention or renewal rates, averaging about 90% or just under that for the automotive policy renewals. If I compare that to, for example, the automotive industry, even the very best vehicle in terms of sales each year, something like the Toyota Camry doesn't come close to a 90% retention rate," Bowler said in the interview. "The focus in insurance is on policy retention, on acquisition and branding. With a few notable exceptions I'll grant you, most insurers were just not spending the kind of money that we're seeing today in advertising. Most of that spending was going toward commissions, and the job of finding the next prospect or building the relationship with a customer fell more to the local agent than perhaps to the carrier."

Bowler is a featured presenter at the 2008 Insurance Marketing and Advertising Summit, set for Nov. 6 at the Marriott Marquis in New York City. The one day conference, presented by the A.M. Best Company, will explore marketing and advertising in the insurance industry.

In conjunction with the conference, A.M. Best is continuing its podcast series focused on insurance marketing and advertising issues.

How Much Car Insurance Should You Buy?

Car insurance isn’t very exciting. Depending on which state you live in, it could be a smaller or larger piece of your budget than your neighbors across state lines.

How much insurance should you buy? Any insurance agent worthy of their salt will tell you that you should buy as much as you can afford. While this is a good rule of thumb, it's about as useful as a stock broker's tip to buy low and sell high. It might be sound logic but it doesn't get you any closer to an educated decision. There are a few filters that need consideration in order to make that educated decision. First, what is the state required minimum coverage where you live? Second, what does the minimum cover? Third, what other coverage is available and can you afford it? And fourthly, what are you protecting?

What is the minimum for your state?

Insurance that Covers any Driver that Drives your Car

Looking for auto insurance that covers any drivers?

Get car insurance quotes online for policy to cover other drivers rather than just you. Any driver you would like covered on your cars would have to fit the coverage eligibility and each company has its own rules and regulations on covering persons not included in the policy. In order to be sure, review carefully the details on "drivers covered" before allowing others to drive.

In general, anyone residing at your home address who will be driving your vehicles would have to be listed and included in order for auto insurance coverage to apply. Be cautious about the "excluded drivers" section which will specify anyone who it will definitely not cover. By signing the exclusion agreement, you are agreeing that those listed persons are not covered under any circumstance.

It is best to add anyone who will likely drive your cars in order to be sure; however, some companies will provide limited coverage for anyone who:

• does not reside in your household
• does not have regular access to your vehicles
• does not own the vehicle or is listed in the registration title
• is not using the cars for work place related purposes

If you're unsure or have a special circumstance, you may want to speak to an agent to check and make sure that the policies will be covering anyone who drives.

Adding a driver to a car insurance policy:

Policyholders can contact their carrier to add drivers who will be driving their automobiles. The process should be quite simple. First you will need to gather basic information such as date of birth, and any history of convictions and accidents such as convicted drunk drivers.

High risk drivers may generate a higher rate because they may be considered more likely to be involved in an accident. Young, teen or 1st time new drivers with a learners permit may also cause high premiums and may impact not just the vehicle they will be driving but all on the policy. Although there are some benefits to adding multiple autos to a policy such as multi car discounts, you should weigh out the difference in price savings by quoting the addition of the driver to your current policy vs. buying a whole new policy for them.

Quotes are free at OnlineAutoInsurance.com and with one simple process, you may get the rates of multiple leading carriers to complete a premium comparison. Since there are such wide ranges of drivers such as those with expired driver's license, elderly drivers or even the occasional imperfect driver with bad credit or no license at all, it is important to realize that there are companies out there that specialize in the high risk categories and can offer very reasonable rates.

Pinching Pennies? Don't Drop Car Insurance

In these tough economic times, you may be tempted to skip car insurance coverage. Don't. We're all feeling the squeeze, but neglecting required car insurance could be a huge mistake.

Minimum Car Insurance Laws
All states have minimum car insurance laws. You might think you can get away without it if you can just avoid accidents, but you can't be sure. Driving without car insurance is a crime. Most states have laws requiring you to show proof of insurance whenever it's asked for. Often this includes random checkpoints that will catch you whether you've done something wrong or not.

Unannounced Car Insurance Verification
Many states even have surprise car insurance inspections. In these, you have to mail in proof of insurance showing you were covered on the day they sent the letter. Once you're caught without insurance, it's too late.

Penalties for Driving Without Car Insurance
Penalties for failing to maintain car insurance can range from a fine, to a suspended license, to jail time. If you get caught, your car or license plates could be impounded until you can pay the fine. Then, you have to pay another fee to reinstate your registration. It's quite possible that all of these penalties could happen at once.

If you're in an accident, there could be strict penalties imposed on you when you try to drive later. In addition to the problems described earlier, you'll probably have to continuously maintain a bond or other proof of car insurance. If this bond expires or is cancelled, you'll be subject to penalties again. States such as Ohio require you to keep this bond on file with an Ohio insurance company—even if you move out of state.

Car Insurance Protects You
Also, keep in mind that car insurance is there to protect you. If you get in a car accident and cause damage to someone or their property, you'll have to pay whatever your car insurance doesn't cover. You can either pay a little now or a lot later.

Above all, if you think car insurance is expensive now, just try getting it after being caught without insurance. You'll be in a new high risk category, and you'll be expected to pay a lot even though you're not a bad driver. Rates are on the rise around the nation, but car insurance is not optional. It's illegal to drive without car insurance, and it won't save you money.

Get Car Insurance
If you're having trouble figuring out how to get cheap car insurance, you can get a free online car insurance quote from Insurance.com. Or call one of our licensed agents, who can help you figure out how to save money.

10+ Tips to Help You Save on Car Insurance

Most people complain about the cost of their auto insurance--hardly surprising, given that a typical policy costs at least several hundred dollars a year. Depending on your age, driving record, and other factors, your annual premium can be significantly more than that. So how can you lower your premium and save yourself money?

If you own a car and drive it, going without insurance is generally not an option. In most states, you are required by law to purchase a minimum amount of liability coverage. And you should probably have more than just the bare minimum if you want to provide yourself with adequate protection. There are steps you can take, however, to reduce your auto insurance costs without having to cancel your policy. Some or all of these steps may be appropriate for you, depending on your circumstances.

Specific ways to save money on auto insurance:

1. Shop around.
One of your first steps should be to shop around. A particularly good time to investigate your alternatives is when your current policy is about to be up for renewal, especially if you find that your premium has gone up. You may be surprised to learn that auto insurance premiums for the exact same coverage on the same car can vary widely (by hundreds of dollars) between different insurers, even in states that regulate auto insurance rates.

2. Increase your deductible.
For many people, raising the deductible on their auto insurance is a good way to cut the cost of the policy. Sometimes you can reduce your annual premium by 10 percent or more if you increase your deductible from, say, $250 to $500. If you do this, however, make sure you have the financial resources to handle the larger deductible when the time comes.

3. Keep an eye on your credit report.
Your credit history is an important factor for most auto insurance companies. Many studies have shown a correlation between your credit history and the risk to an insurance company. Paying your bills on time and maintaining a good credit history will allow you to enjoy lower auto insurance rates.

4. Drive less.
If you drive less than a certain number of miles in a year (e.g., 7,500), you may qualify for a low-mileage discount. If your insurer offers this discount, try to limit your driving as much as possible. If you commute to work, use public transportation instead of driving. When you go away on vacation, fly or take the train.

5. Don't use your car for business purposes.
Since work-related driving generally subjects you to higher premiums than pleasure driving, it may be in your best interest to stop using your car for business purposes.

6. Drive more safely.
You may be eligible for a price break on your policy if you maintain a clean driving record for a specified period (usually three years). A clean driving record generally means no accidents, moving violations, drunk driving convictions, etc., during that period. The best way to qualify for the applicable discount is to drive carefully and defensively at all times.

7. Buy a low-profile car.
Cars are rated on a risk scale for auto insurance purposes. In general, sports cars and other high-performance, flashy vehicles are classified as higher risks because they are common targets for thieves and vandals, and because statistically, the people who own them tend to drive more recklessly. If you own such a vehicle, you will likely pay a higher premium than if you owned a station wagon, sedan, or other low-risk vehicle.

8. Move.
If you live in a rural community with little crime and traffic congestion, your premium will generally be lower than if you live in an urban area where your car is more likely to be stolen, vandalized, or involved in an accident. Granted, you shouldn't move just to cut your auto insurance costs. However, this may be one of many factors in your decision if you're thinking about relocating from the country to the city.

9. Keep your car in a garage.
Cars parked in garages are less likely to be stolen, vandalized, or struck by other vehicles. Using a garage to store your car may entitle you to a slight premium reduction.

10. Have safety/anti-theft devices installed.
You may receive discounts on your insurance if your car is equipped with one or more of the following options: anti-lock brakes, automatic seat belts, and airbags. Similarly, anti-theft devices such as car alarms and tracking systems (e.g., Lojack) may also get you a discount because they reduce the chances of your car being stolen or vandalized.

11. Inquire about multifamily/multipolicy discounts.
You may receive a discount from your insurance company if you buy more than one type of insurance through that same company (e.g., auto and homeowner's). A discount may also apply to your auto insurance if you insure multiple cars under the same policy or with the same company.

12. Other discounts
Other discounts may be available if you meet certain criteria. Examples may include discounts for taking a defensive driving course, being a AAA member or staying with the same auto insurance company for a number of years. These discounts vary by company.

Car Insurance For Young Adults

Typically, young adults are going to pay more for their car insurance than anyone else under age 70, because they are considered the riskiest on the road. However, young adults can lower their auto insurance rate by taking a defensive driver course, raising their comprehensive and collision coverage deductibles, commuting through public transportation, buying a home or renters policy through the same car insurance company, or buying a safer car.

Ways to Save on Your Car Insurance
One way to save money on your auto insurance is to purchase a vehicle with front and side airbags, antilock breaks, automatic seatbelts and daytime running lights. Many auto insurance companies give discounts for these safety features, not to mention cars with these features are generally cheaper to insure! Another way to save a few bucks is to join an auto club, such as American Automobile Association (AAA), or taking advantage of discounts through your employer.

In the event you own an older vehicle, it may be a good idea to drop the collision and comprehensive coverages from your car insurance policy, because both coverages require you to pay a deductible in the event you file a claim, and in some cases, that may be more than your car is worth.

If you were recently married or are about to be married, you will notice a considerable drop in your auto insurance rates. That’s because insurance companies view married couples as more “stable” and less of a risk. Also, when you turn 25, you can expect to see a decrease in your auto insurance rate because auto insurance companies view people 25 and older as a more “stable driver”.

Living With Mom and Dad
If you still live with your parents, but don’t own your own car, you are still eligible to remain on their policy. This will save you money because your parents are considered lower-risk drivers and will likely have a better auto insurance rate than if you had car insurance on your own. However, if you purchase your own vehicle, most car insurance companies will require you to buy your own insurance, to avoid any confusion as to who the car belongs to.

Financial Picture
To save money, you should look into what other insurance coverages you already have and see if you’re paying for double-coverage. If you have health insurance through your employer, you can waive Personal Injury Protection (PIP), which pays for your medical expenses in the event of an accident. At times, some car insurance companies will allow you to limit medical damages under your uninsured motorist coverage in exchange for a lower premium.

Just be careful as to not sacrifice adequate car insurance to save a couple extra bucks. For instance, if you’re in a major accident with an uninsured motorist, and your medical bills are high, you will end up paying for those bills, not the uninsured motorist!