E-Fusion Award 2002 First E-Fusion Recipient Selected By Marilyn Ostermiller

WASHINGTON D.C.-- National broker Arthur J. Gallagher is the recipient of the first E-Fusion Award in recognition of its CIPWorks project, an Internet-based process for managing construction wrap-up programs.

The E-Fusion Award was announced Monday night at a reception at the National Press Club during A.M. Best Co.'s Annual Insurance & Technology conference. The top six projects were selected from among 67 entries by a panel of judges.

The E-Fusion Award is a new award designed to recognize outstanding resourceful uses of Internet technology by an insurance organization. Entrants included insurance companies, reinsurers, third-party technology providers working with an insurer or brokerage or related financial services engaged in insurance.

The CIPWorks project has given Arthur J. Gallagher a competitive advantage. The company recently acquired four construction wrap-up projects with combined premium of $4 million. Each of those companies chose Gallagher because of this process for managing construction wrap-up, said Peggy Patterson, managing director, National Wrap Up Unit.

Among the other benefits achieved from CIPWorks are:
-- A significantly reduced workload. For example, the work that used to take one person eight days a month to do doesn't have to be done anymore. It is handled automatically through CIPWorks.
-- Greater accuracy. In the midst of handling the bureaucracy that is inherent in multiyear, multimillion dollar construction projects some contractors can be assigned the same policy number. That doesn't happen with the CIPWorks program.

The other top finalists were:
Abacus Insurance Brokers Inc. The retail and wholesale brokerage, developed the Abacus Program Management platform that enables retail and wholesale brokers to quote, bind, issue policies and certificates, process endorsements and accept credit card payments online. Abacus principals Darren and Kevin Lewin developed the program to significantly reduce the costs incurred in writing specialty lines. The program currently handles four specialty lines including commercials and other film projects with a budget of less than $1 million. Prior to developing the project, the company had revenue of less than $90,000 per quarter for those lines; now premium is about $900,000 per quarter.

Fidelity & Guaranty Life's SalesLink. This site allows agents to receive information via e-mail subscriptions, check the status of pending applications, review commissions, obtain product specifications and interact with the company. The
company reports the project has become so widely accepted that 72% of its annuity production and 92% of its life insurance production now comes from SalesLink user.

Frankenmuth Mutual's Insurance Business Issuance System. This is an agent-company interface allows for real-time quoting, more accurate and timelier underwriting and policy issuance. Agents can view electronic copies of billing and policy documents such as invoices, declaration pages and more though the system in printable format. To build on the program, Frankenmuth, which is predominately a commercial insurer, is encouraging agents to use high-speed Internet connections and go paperless.

REGAL, a project submitted by the U.K. offices of GE Employers Reinsurance, is an online quotation system that allows for the generation of life and health reinsurance quotes for customers 24 hours a day, seven days a week. It was designed for the specific needs of clients in Middle East countries who are generating quotations for group employee benefit programs. This business is complicated by the time difference and a different business work week. The project worked around such obstacles as an unreliable Internet connections and the need for quick quotes as well as the ability to negotiate.

Minnesota Life's LifeBenefits. This project allows participants in clients' group insurance plans 24/7 access to their life insurance benefits. Employees of client companies can enroll for multiple products, designate beneficiaries and perform other account management functions online. The system responds to client requests that the program be simplified as well as customized.

Insurance professionals representing a broad cross-section of the industry judged the six finalists. The judges were Madelyn Flannagan, vice president of education and research, Independent Insurance Agents and Brokers of America; Charles Johnston, vice president and service director, Insurance Information Strategies, Meta Group; John Kellington, senior vice president and chief technology officer, The Ohio Casualty Group; and Alan Rutkin, litigation partner, Rivkin Radler LLP.