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Vendor/System Review

Managing Risk With
Information Technology

DAVID A.TWEEDY

A review of the major RMIS vendors and the systems they offer.
David A. Tweedy, CMC, is President of Tweedy Risk Consulting

As appearing in The John Liner Review Spring 1995
© Copyright 1995, 1996 Standard Publishing Corporation

Vendors Listed in this Section

American Technical Services Inc. (ATS)
Anistics
California Interactive Computing Inc.
CARE Systems Corporation
Conway Computer Group
Corporate Systems Ltd.

DAVID Corporation
DORN Technology Group Inc.
Insurance Software Packages
Pyramid Services, Inc.
Risk Sciences Group/Paradigm Infosystems
Seligman Information Systems


AMERICAN TECHNICAL SERVICES INC. (ATS)

2706 Alternate 19
Suite 270
Palm Harbor, FL 34683
Phone: 1-800-654-7611
Key Contacts:
Cheryll Wing, President
Craig Zivolich, Dir. of Technology

1. Firm Profile

Vendor Objective: To provide comprehensive risk and claims management systems to insurance industry and risk management professionals. Slowly, but surely, the firm is building a solid client base across a wide functional and geographical area. Name recognition is still not high but is gaining in popularity.

Year Founded: 1986

Annual Revenue (1994): $1.3 million

Corporate Status: Independent; Joint ventures with Quaester and Westbrook File Magic

Number of Direct Users: 106 (475 indirect)

Staff Breakdown:

Locations: Florida, California, and Michigan

Client System Profile:

Revenue Source

% Revenue

Timeshare systems

none

Standalone systems

49%

Customized system development

21%

Database Mgt./Conversions

4%

Employee Benefit System (24 hour coverage)

2%

Other (consulting)

14%

Principal Target Markets:

Client Description

Installations

Public Sector

25

Captives, RRGs, Pools

5

Manufacturing

10

Retail

3

Service Provider (TPA, insurer, broker)

3

Health Care

3

Other (financial services)

15

Major Competitors: Pyramid; Dorn Technology Group

Global Efforts: Under development

Research & Development Activities: Software enhancements

Users' Groups: None, per clients' decision.

Training: Initial 3 to 5 day session; then as necessary

Related Services: N/A

2. System(s) Profile

Name/Key Functions:

System

Function

ATS/Comp

WC claims administration

ATS/PAC

Multi-line liability claims admin.

ATS/Med

Group health claims system

ATS/Risk

Risk management modules

ATS/Agency Mgt.

Agency/underwriting system

ATS/UR

Utilization review module

ATS/Image

Document management (imaging) (OCR capacity)

Preferred Platform Architecture
Installations:

Mainframe - 0

PC-LAN - 16

Minicomputer - 67

PC Stand Alone - 20

Client/Server - 3

Software:

Software Level

Packages

Operating System

Unix; OS2; Windows; Windows NT; Theos; C

Applications Languages

Access; Focus; Theos; Informix; SQL; ODBC

Network Environments

Novell; Vines; Unix; DEC; Windows; IBM

Functionality:

Basic Analysis

Yes/No

Advanced Analysis

Yes/No

  • Claims Tracking

  • Claims Admin.

online hookup with other claim organizations

N

medical mgt (including fee schedules)

Y

  • Claims Admin.

automated reserve calculations

N

1099 issuance

Y

"patterns of treatment" analysis

N

1-800 reporting

Y

litigation mgt.

Y

bank reconciliation

Y

  • Risk Financing Analysis

  • Insurance Admin.

financial models comparison

Y

Policy register

Y

Cost of Risk Allocation

Y

Certificates Tracking

N

Actuarial (loss development & forecasting)

Y

Certificates Issuance

N

  • Exposure tracking

  • Exposure tracking

Property valuation

Y

Property (ies)

Y

Benchmark analysis

Y

Vehicles

N

  • Advanced Reporting

  • Loss Control Analysis
    (ie. OSHA Log, safety reports)

N

detailed "drill down" analysis

Y

  • Basic Reporting & Graphics
    (standard, simple ad hoc)

Y

point-in-time reports

Y

interface with other software

Y

Technology:

Basic System Price Range: Confidential by request

3. User Feedback

User feedback was quite positive. ATS personnel executed solid installations and provide good service. Functionality is good. No significant weaknesses were detected.

4. Summary Analysis

Major Strengths

Weaknesses

Comprehensive RMIS (all modules)

Marketing, name recognition

Good use of technology

Still using Theos (not industry standard)


ANISTICS

1185 Avenue of the Americas
New York, NY 10036
Phone: 1-212-238-1830
Key Contacts: Mary Villiani, Global Director
Lee Topham, VP

1. Firm Profile

Vendor Objective: To provide a comprehensive automated risk management information system, with support financial services, to a full range of risk management professionals. Systems and support are offered to both Alexander & Alexander and non-A&A clients.

Year Founded: 1970

Annual Revenue (1994): Not reported (included in parent corporation's numbers)

Corporate Status: Parent is Alexander and Alexander.

Number of Direct Users: 240

Staff Breakdown:

Locations: New York, Dallas, Atlanta, London, San Francisco, Sydney, Paris, and Toronto

Client System Profile:

Revenue Source

% Revenue

Timeshare systems

none

Standalone systems

32%

Customized system development

included

Database Mgt./Conversions

35%

Employee Benefit System (24 hour coverage)

10%

Other (consulting)

13%

+Principal Target Markets:

Client Description

Installations

Public Sector

45

Captives, RRGs, Pools

0

Manufacturing

143

Retail

10

Service Provider (TPA, insurer, broker)

3

Health Care

8

Other (financial services)

31

+ Major Competitors: David; Dorn; Pyramid; J&H; Risk Sciences Group

+ Global Efforts: Significant RMIS activity in Europe; beginnings in Far East.

+ Research & Development Activities: Continued development of OMEGA system.

+ Users' Groups: One established in London with 25 members.

+ Training: Standard training immediately after purchase of new module with follow-up every several months, if necessary. Classes are kept to a minimum of five for maximum results. A special session is given on reports as well.

+ Related Services: Risk financing consulting is a major service of Anistics and has been since its inception.

2. System(s) Profile

+ Name/Key Functions: OMEGA

System

Function

Claims Management

WC and Liability claims administration

Policy Management

Insurance policy register

Property Management

Property valuation module

Exposure Module

Exposure analysis

Triangles/Loss Forecasting

Develops claim reserves, estimates future payouts

Allocation

Cost-of-risk allocation module

+Preferred Platform Architecture
Installations:

Mainframe - 0

PC-LAN - 218

Minicomputer - 0

PC Stand Alone - 22

Client/Server - 0

+ Software:

Software Level

Packages

Operating System

OS2; DOS; PCDOS, Windows; Windows NT

Applications Languages

MS-Graph; Word-Perfect; Word; R&R; ACCESS; FoxPro; Excel; Lotus

Network Environments

Novell; Vines; Unix; 3COM LAN; ARCNET; IBM; 10NET

+Functionality:

Basic Analysis

Yes/No

Advanced Analysis

Yes/No

  • Claims Tracking

  • Claims Admin.

online hookup with other claim organizations

Y

medical mgt (including fee schedules)

N

  • Claims Admin.

automated reserve calculations

N

1099 issuance

Y

"patterns of treatment" analysis

Y

1-800 reporting

N

litigation mgt.

Y

bank reconciliation

Y

  • Risk Financing Analysis

  • Insurance Admin.

financial models comparison

Y

Policy register

Y

Cost of Risk Allocation

Y

Certificates Tracking

Y

Actuarial (loss development & forecasting)

Y

Certificates Issuance

N

  • Exposure tracking

  • Exposure tracking

Property valuation

Y

Property (ies)

Y

Benchmark analysis

Y

Vehicles

Y

  • Advanced Reporting

  • Loss Control Analysis
    (ie. OSHA Log, safety reports)

Y

detailed "drill down" analysis

Y

  • Basic Reporting & Graphics
    (standard, simple ad hoc)

Y

point-in-time reports

Y

interface with other software

Y

+Technology:

+Basic System Price Range: Confidential by request.

3. User Feedback

User feedback was most positive. Omega is a relatively new system but has been received quite well. It is very comprehensive functionally but not as technically advanced as its closest competitors at present. However, service is reported as good.

4. Summary Analysis

Major Strengths

Weaknesses

Fully functional RMIS

Still perceived as broker system

Global RMIS capabilities

Awaiting client/server module

Insurance Administration

Catching up technologically

Risk Financing


CALIFORNIA INTERACTIVE COMPUTING, INC.

25572 Avenue Stanford
Valencia, CA 91355-1102
Phone: 1-805-294-1300
Key Contacts: Jerry C. Buckley, President
Ralph Flygare, Vice President

1. Firm Profile:

+ Vendor Objective: To provide a comprehensive automated risk management information system, specifically emphasizing workers compensation, liability and group medical claims. The company has survived apparently difficult financial times of four years ago with a nice recovery of new clients in California and the Southwest.

+ Year Founded: 1977

+ Annual Revenue (1993): $ 3.3 million

+ Corporate Status: Independent

+ Number of Direct Users: 246

+ Staff Breakdown:

+ Locations: Valencia, CA, Cocoa Beach, FL, and Sausalito, CA

Client System Profile:

Revenue Source

% Revenue

Timeshare systems

3.5%

Standalone systems

19.5%

Customized system development

7%

Database Mgt./Conversions

35%

Employee Benefit System (24 hour coverage)

10%

Other (consulting)

20%

+Principal Target Markets:

Client Description

Installations

Public Sector

39

Captives, RRGs, Pools

3

Manufacturing

2

Retail

36

Service Provider (TPA, insurer, broker)

186

+ Major Competitors: David; Pyramid; Corporate Systems

+ Global Efforts: US and Virgin Islands.

+ Research & Development Activities: Knowledge-based systems for reserve establishment.

+ Users' Groups: Yes; 30-40 attendees.

+ Training: Standard training is available immediately after purchase of new modules with follow-up every several months, if necessary. Regular sessions are available on an annual basis and whenever needed.

+ Related Services: Some employee benefit systems.

2. System(s) Profile

+ Name/Key Functions:

System

Function

GenComp

WC claims administration

GenPac

Liability claims administration

GenMed

Group medical claims administration

PDRS

Permanent Disability Rating

GenRisk

General risk management module

GenStation

Remote incident reporting module

+Preferred Platform Architecture
Installations:

Mainframe - 2

PC-LAN - 4

Minicomputer - 97

PC Stand Alone - 143

Client/Server - 0

+ Software:

Software Level

Packages

Operating System

UNIX; Windows NT; some Windows

Applications Languages

VMark's Universe; Coopers & Lybrand's Exhibitmaker; Softouch; C++; Object Vision; SQL; BASIC

Network Environments

Novelle Netware

+Functionality:

Basic Analysis

Yes/No

Advanced Analysis

Yes/No

  • Claims Tracking

  • Claims Admin.

online hookup with other claim organizations

Y

medical mgt (including fee schedules)

N

  • Claims Admin.

automated reserve calculations

N

1099 issuance

Y

"patterns of treatment" analysis

Y

1-800 reporting

N

litigation mgt.

Y

bank reconciliation

Y

  • Risk Financing Analysis

  • Insurance Admin.

financial models comparison

Y

Policy register

Y

Cost of Risk Allocation

Y

Certificates Tracking

Y

Actuarial (loss development & forecasting)

Y

Certificates Issuance

N

  • Exposure tracking

  • Exposure tracking

Property valuation

Y

Property (ies)

Y

Benchmark analysis

Y

Vehicles

Y

  • Advanced Reporting

  • Loss Control Analysis
    (ie. OSHA Log, safety reports)

Y

detailed "drill down" analysis

Y

  • Basic Reporting & Graphics
    (standard, simple ad hoc)

Y

point-in-time reports

Y

interface with other software

Y

+Technology:

+ Basic System Price Range (includes initial and 1st year maintenance):

Number of Users

Platform

1

10-20

20-50

50-100

100+

Mainframe

$16,000

$33,000

$52,400

$76,800

$100,000

Minicomputer

--

$55,160

$87,008

$131,027

$158,000

PC-LAN

$27,440

$55,160

$87,008

$131,027

$158,000

3. User Feedback

User feedback was mostly positive. CIC continues to offer one of the best stand-alone workers compensation systems anywhere. Service responsiveness is excellent. There were some complaints about the user friendliness but the new Unix version upgrade has seemed to solve that problem.

4. Summary Analysis

Major Strengths

Weaknesses

Excellent WC Claims administration system

Technologically behind closest competitors (not yet client-server)

West Coast orientation

Claims orientation, not risk management


CARE SYSTEMS CORPORATION

12377 Merit Drive, Suite 100
Dallas, TX 75251
Phone: 214-419-5005
Contact: Geoff Baker, EVP

1. Firm Profile:

+ Vendor Objective: To provide a technologically superior, comprehensive claims management information system to large self-insureds, insurers, and third-party administrators.

+ Year Founded: 1992

+ Annual Revenue (1994): Not reported

+ Corporate Status: Independent; joint venture with Perot Systems Corporation

+ Number of Direct Users: Not reported

+ Staff Breakdown: 265 (not broken down)

+ Locations: Dallas, TX, Tallahassee, FL, Tampa, FL, Bristol, TN, Covina, CA, Troy, MI, and Los Angeles, CA

+ Client System Profile: Not broken down

+ Principal Target Markets: Breakdown not reported; however, the company describes its preferred target markets as large self-insureds, governmental entities, insurers and third-party administrators.

+ Major Competitors: EDS; Big 6 Accounting firms IT areas

+ Global Efforts: Significant RMIS activity in Australia; discussions ongoing in Europe.

+ Research & Development Activities: Continued development in other functional areas such as group health and disability, general liability and risk management.

+ Users' Groups: N/A

+ Training: Standard training immediately after purchase of new module with follow-up every several months, if necessary.

+ Related Services: N/A

2. System(s) Profile

+ Name/Key Functions:

System

Function

Claims Management

WC and Liability claims administration

Integrated Medical Management

WC fee schedule, patterns of treatment expert medical system

Triangles/Loss Forecasting

Develops claim reserves, estimates future payouts

Allocation

Cost of risk allocation module

+Preferred Platform Architecture
Installations:

Mainframe - 0

PC-LAN - 0

Minicomputer - 0

PC Stand Alone - 0

Client/Server - several

+ Software:

Software Level

Packages

Operating System

Unix; Windows

Applications Languages

Oracle RDBMS, Uniplex, CCMail

Network Environments

Novell

+Functionality:

Basic Analysis

Yes/No

Advanced Analysis

Yes/No

  • Claims Tracking

  • Claims Admin.

online hookup with other claim organizations

Y

medical mgt (including fee schedules)

Y

  • Claims Admin.

automated reserve calculations

Y

1099 issuance

Y

"patterns of treatment" analysis

Y

1-800 reporting

N

litigation mgt.

N

bank reconciliation

Y

  • Risk Financing Analysis

  • Insurance Admin.

financial models comparison

Y

Policy register

N

Cost of Risk Allocation

Y

Certificates Tracking

N

Actuarial (loss development & forecasting)

Y

Certificates Issuance

N

  • Exposure tracking

  • Exposure tracking

Property valuation

N

Property (ies)

N

Benchmark analysis

Y

Vehicles

N

  • Advanced Reporting

  • Loss Control Analysis
    (ie. OSHA Log, safety reports)

Y

detailed "drill down" analysis

Y

  • Basic Reporting & Graphics
    (standard, simple ad hoc)

Y

point-in-time reports

Y

interface with other software

Y

+Technology:

+ Basic System Price Range: Confidential by request. However, the company's pricing tends to be high if priced straight. If a contingency approach is used, whereby CARE realizes a percentage of savings from the use of its system, the total cost is in accord with that of other vendors' systems and, in some cases, lower.

3. User Feedback

User feedback was most positive. One client reports significant reduction on its overall cost of workers compensation due to usage of the CARE system. Others have commented on how well the system is supported by the combination of Perot and CARE personnel.

4. Summary Analysis

Major Strengths

Weaknesses

Excellent integrated WC/Medical Mgt. System

Limited to WC at present

Excellent expert systems

Costly (unless contingency plan is used)

Technology

Larger clientele sought

Service


CONWAY COMPUTER GROUP

6360 I-55 North
Suite 300
Jackson, MS 39211
Phone: 601-957-7400
Contact: Ken Walz, Director of Marketing

1. Firm Profile:

+ Vendor Objective: To provide a solid automated claims management information system, with ancillary risk management modules.

+ Year Founded: 1978

+ Annual Revenue (1994): Not reported

+ Corporate Status: Independent; some joint ventures with specialists such as fee schedules and medical management.

+ Number of Direct Users: 45 (6200 end users)

+ Staff Breakdown:

+ Locations: Jackson, MI and New Orleans, LA

Client System Profile:

Revenue Source

% Revenue

Timeshare systems

none

Standalone systems

26%

Customized system development

24%

Database Mgt./Conversions

36%

Claims Administration

8%

Policy Administration

8%

+Principal Target Markets:

Client Description

Installations

Public Sector

2

Captives, RRGs, Pools

10

Manufacturing

3

Retail

4

Service Provider (TPA, insurer, broker)

9

+ Major Competitors: Corporate Systems; David; PDS

+ Global Efforts: N/A

+ Research & Development Activities: Advanced utilization review; outsourcing services for insurers.

+ Users' Groups: Yes; all current clients are in the group.

+ Training: Training is offered at the client's location after purchase, then on an as-needed basis.

+ Related Services: N/A

2. System(s) Profile

+ Name/Key Functions:

System

Function

Claims Management

WC and Liability claims administration

Policy Management

Insurance policy register

Property Management

Property valuation module

Exposure Module

Exposure analysis

Triangles/Loss Forecasting

Develops claim reserves, estimates future payouts

Allocation

Cost of risk allocation module

+Preferred Platform Architecture
Installations:

Mainframe - 0

PC-LAN - 218

Minicomputer - 0

PC Stand Alone - 22

Client/Server - 0

+ Software:

Software Level

Packages

Operating System

OS2; DOS; PCDOS, Windows; Windows NT

Applications Languages

MS-Graph; WordPerfect; Word; R&R; ACCESS; FoxPro; Excel; Lotus

Network Environments

Novell; Vines; Unix; 3COM LAN; ARCNET; IBM; 10NET

+Functionality:

Basic Analysis

Yes/No

Advanced Analysis

Yes/No

  • Claims Tracking

  • Claims Admin.

online hookup with other claim organizations

Y

medical mgt (including fee schedules)

N

  • Claims Admin.

automated reserve calculations

N

1099 issuance

Y

"patterns of treatment" analysis

Y

1-800 reporting

N

litigation mgt.

Y

bank reconciliation

Y

  • Risk Financing Analysis

  • Insurance Admin.

financial models comparison

Y

Policy register

Y

Cost of Risk Allocation

Y

Certificates Tracking

Y

Actuarial (loss development & forecasting)

Y

Certificates Issuance

N

  • Exposure tracking

  • Exposure tracking

Property valuation

Y

Property (ies)

Y

Benchmark analysis

Y

Vehicles

Y

  • Advanced Reporting

  • Loss Control Analysis
    (ie. OSHA Log, safety reports)

Y

detailed "drill down" analysis

Y

  • Basic Reporting & Graphics
    (standard, simple ad hoc)

Y

point-in-time reports

Y

interface with other software

Y

+Technology:

+ Basic System Price Range (includes initial and 1st year maintenance):

Number of Users

Platform

1

10-20

20-50

50-100

100+

Minicomputer & Client/Server

$51,000

$73,000

$99,000

$122,000

$122,000

3. User Feedback

User feedback was positive. Excellent service and solid system design is universally reported by clients. Again, Conway's focus is mostly on claims and insurance administration and not as much on the higher risk management areas in a minicomputer environment.

4. Summary Analysis

Major Strengths

Weaknesses

Solid claims administration system

Not as risk management administration system oriented

Good underwriting system

Awaiting client/server module


CORPORATE SYSTEMS, LTD.

1200 Corporate System Center
P.O. Box 31780
Amarillo, TX 79102-4410
Phone: 806-376-4223
Key Contacts: Dave Duden, Dir. Marketing
David Chzaszcz, Dir. Product Development

1. Firm Profile:

+ Vendor Objective: To provide a diverse client base with a comprehensive risk management information system solution, including a variety of support services. In the company representatives' words, their goal is to provide Òan intense commitment to client/server knowledge-based technologies, the capital and resources available to achieve these goals, coupled with an outstanding array of professionals to service and consult with clients, prospects and consultants....Ó

+ Year Founded: 1967

+ Annual Revenue (1994): $39.5 million

+ Corporate Status: Independent. Joint ventures with: GMIS, Inc.; Health Payment Review; MEDICODE; Medirisk; MedView; Bottom Line Technologies; and Milliman and Robertson.

+ Number of Direct Users: 646 (5037 indirect clients)

+ Staff Breakdown:

+ Locations: Amarillo, TX, Lisle, IL, and Hartford, CT

Client System Profile:

Revenue Source

% Revenue

Timeshare systems

62%

Standalone systems

11%

Customized system development

22%

Database Mgt./Conversions

13%

Claims Administration

n/a

Employee Benefit System (24-hr. cov.)

n/a

Other (Teleclaim, Medical Cost Containment)

22%

+Principal Target Markets:

Client Description

Installations

Public Sector

159

Captives, RRGs, Pools

22

Manufacturing

2,586

Retail

1,153

Service Provider (TPA, insurer, broker)

303

High Tech

58

Non-Profit

12

Educational Institutions

353

Private Consulting Companies

4

Health Care

42

Other (trucking, wholesale, construction)

375

+ Major Competitors: DAVID; Anistics; Pyramid; ATS; Risk Sciences Group

+ Global Efforts: CS Knowledge is available now in the United Kingdom, France and Germany. Continued penetration of overseas marketplace is ongoing.

+ Research & Development Activities: Continued development of a full-scale client server environment in multiple platforms such as UNIX, PC file servers, parallel processors and IBM AS/400. Planned 1995 releases in the client/server environment include: certificates of insurance tracking; CS TeleClaim; property/fixed asset management system; benchmarking/best practices; executive information system; CS claims; medical bill scanning including OCR; and electronic data interchange.

+ Users' Groups: Yes; all clients are members, and there are annual conferences sponsored by CS.

+ Training: Account support is provided for every level of client service. Customer hot lines are available six days a week. Each client has an account support service team including the Account Executive, Account Service Representatives, Data Conversion Specialist and Applications Programmers. Larger dedicated service units handle the large clients such as the insurers.

+ Related Services: Besides providing RMIS services, CS's significant complementary services include data conversion. Also, with EMLICO, CS has developed an integrated 24-hour coordination project, combining workers compensation and disability (short- and long- term disability), TeleClaim (1-800 dial-in claims reporting service), and CS Managed Care for interfacing medical bill audit, automated case management and return-to-work systems.

2. System(s) Profile

+ Name/Key Functions:

System

Function

CAS

WC and Liability claims administration

CS TeleClaim

1-800 accident reporting system

CS Legal Case Mgt. System

Interactive legal system monitoring litigated claims

CS + Case Management

Integrated medical cost mgt.system

Triangles/Loss Forecasting

Develops claim reserves, estimates future payouts

Work Flow Imaging

Document mgt./ scanning system

CS Knowledge

Executive information reporting system

Risk Management Information System

Combines elements of other system for client assisted decision support in risk financing and risk control

Cost-of-Risk allocation

Cost of risk allocation module

24-hour Coordination

Combination WC and Disabililty information system

CS Disability Claims Mgt.

Short- and long-term disability claims administration

+Preferred Platform Architecture
Installations:

Mainframe - 261

PC-LAN - 0

Minicomputer - 385

PC Stand Alone - 0

Client/Server - 0

+ Software:

Software Level

Packages

Operating System

DataComDB; OS/400; Windows

Applications Languages

Oracle; SQL

Network Environments

Novell; IBM based LAN

+Functionality:

Basic Analysis

Yes/No

Advanced Analysis

Yes/No

  • Claims Tracking

  • Claims Admin.

online hookup with other claim organizations

Y

medical mgt (including fee schedules)

Y

  • Claims Admin.

automated reserve calculations

Y

1099 issuance

Y

"patterns of treatment" analysis

Y

1-800 reporting

N

litigation mgt.

Y

bank reconciliation

Y

  • Risk Financing Analysis

  • Insurance Admin.

financial models comparison

Y

Policy register

Y

Cost of Risk Allocation

Y

Certificates Tracking

Y

Actuarial (loss development & forecasting)

Y

Certificates Issuance

Y

  • Exposure tracking

  • Exposure tracking

Property valuation

Y

Property (ies)

Y

Benchmark analysis

Y

Vehicles

Y

  • Advanced Reporting

  • Loss Control Analysis
    (ie. OSHA Log, safety reports)

Y

detailed "drill down" analysis

Y

  • Basic Reporting & Graphics
    (standard, simple ad hoc)

Y

point-in-time reports

Y

interface with other software

Y

+Technology:

+ Basic System Price Range (includes initial and 1st year maintenance):

Number of Users

Platform

1

10-20

20-50

50-100

100+

Mainframe

$26,850

$38,750

$47,750

$92,850

$116,150

Minicomputer

$47,200

$53,100

$64,900

$88,500

$135,700

3. User Feedback

User feedback was positive. CS has made significant strides in a more user-friendly, technologically advanced and diversely functional system. As with all large vendors that have older systems still in place, there are the continued discussions of service response time (especially with smaller clients). However, the direction of CS is most encouraging, and clients are quite pleased.

4. Summary Analysis

Major Strengths

Weaknesses

Most comprehensive RMIS and related services in today's industry

Still some service response questions from certain clients and remarks of inflexibility of existing systems

Reasoned application of available technology

Awaiting client/server installation on key product lines


DAVID CORPORATION

580 California Street
23rd Floor
San Francisco, CA 94104
Phone: 800-55-DAVID
Key Contact: Jennifer James

1. Firm Profile

+ Vendor Objective: To provide self-insureds and service providers with a solid, automated claims management information system, with additional risk management modules.

+ Year Founded: 1983

+ Annual Revenue (1994): Included as part of parent's revenue.

+ Corporate Status: Owned by the Wyatt Company, Chicago, IL, a professional services firm.

+ Number of Direct Users: 240

+ Staff Breakdown:

+ Locations: San Francisco, CA, Dallas, TX, Detroit, MI, and Boston, MA

Client System Profile:

Revenue Source

% Revenue

Timeshare systems

none

Standalone systems

50%

Customized system development

10%

Database Mgt./Conversions

40%

+Principal Target Markets:

Client Description

Installations

Public Sector

38

Captives, RRGs, Pools

10

Manufacturing

33

Retail

25

Service Provider (TPA, insurer, broker)

44

Educational Institutions

18

Health Care

21

Other (transportion, utilities, etc.)

51

+ Major Competitors: Pyramid, Paradigm(RSG), DORN

+ Global Efforts: Minimal

+ Research & Development Activities: Electronic filing; medical fee schedule. and client/server architecture.

+ Users' Groups: Yes: several regional groups and one national conference per year.

+ Training: Training offered is at the client's location for 4-5 days after purchase, then on an as-needed basis.

+ Related Services: N/A

2. System(s) Profile

+ Name/Key Functions:

System

Function

CompPlus

WC claims administration

P&CPlus

General Liability claims administration

IncidentPlus

Incident inquiry and quality assurance

+Preferred Platform Architecture
Installations:

Mainframe - 0

PC-LAN - 220

Minicomputer - 0

PC Stand Alone - 20

Client/Server - 5

+ Software:

Software Level

Packages

Operating System

UNIX; OS2; DOS; PCDOS, Windows; Windows NT; SQLServer

Applications Languages

DataFlex; C++; Visual Basic

Network Environments

Novell; Vines; Unix; 3COM LAN; ARCNET; IBM; 10NET

+Functionality:

Basic Analysis

Yes/No

Advanced Analysis

Yes/No

  • Claims Tracking

  • Claims Admin.

online hookup with other claim organizations

N

medical mgt (including fee schedules)

Y

  • Claims Admin.

automated reserve calculations

N

1099 issuance

Y

"patterns of treatment" analysis

N

1-800 reporting

N

litigation mgt.

Y

bank reconciliation

Y

  • Risk Financing Analysis

  • Insurance Admin.

financial models comparison

Y

Policy register

N

Cost of Risk Allocation

Y

Certificates Tracking

N

Actuarial (loss development & forecasting)

Y

Certificates Issuance

N

  • Exposure tracking

  • Exposure tracking

Property valuation

N

Property (ies)

N

Benchmark analysis

N

Vehicles

N

  • Advanced Reporting

  • Loss Control Analysis
    (ie. OSHA Log, safety reports)

Y

detailed "drill down" analysis

N

  • Basic Reporting & Graphics
    (standard, simple ad hoc)

Y

point-in-time reports

N

interface with other software

Y

+Technology:

+ Basic System Price Range: Confidential by request

3. User Feedback

Although DAVID did not provide a client list, we are familiar with several of their clients. All report a well-functioning claims system and fairly responsive service. The emphasis is claims and, in particular, workers compensation.

4. Summary Analysis

Major Strengths

Weaknesses

Solid WC claims administration

Not risk management systemoriented

Good service

Awaiting client/server architecture


DORN TECHNOLOGY GROUP

Suite 450
38705 Seven Mile Road
Livonia, MI 48152-1005
PHONE: 313-462-5800
Key Contact: Mark Dorn, President

1. Firm Profile

+ Vendor Objective: To provide the risk management and service provider community with a fully comprehensive risk management information system, utilizing state-of-the-art technology at a reasonable cost.

+ Year Founded: 1982

+ Annual Revenue (1993, quoted in Business Insurance): $4.1 million

+ Corporate Status: Independent

+ Number of Direct Users: 520

+ Staff Breakdown:

+ Locations: Livonia, MI, St. Petersburg, FL, and Cincinnati, OH

Client System Profile:

Revenue Source

% Revenue

Timeshare systems

none

Standalone systems

30%

Customized system development

15%

Database Mgt./Conversions

10%

Turnkey consulting services

35%

+Principal Target Markets:

Client Description

Installations

Public Sector

50

Manufacturing

180

Retail

20

Service Provider (TPA, insurer, broker)

50

Health Care

300

+ Major Competitors: Corporate Systems; free broker systems

+ Global Efforts: N/A

+ Research & Development Activities: Continued enhancement of DOS system and new client server system.

+ Users' Groups: Yes, 125 clients.

+ Training: Training offered in three levels: pre-implementation; initial training and basic data entry; post-implementation follow-up.

+ Related Services: N/A

2. System(s) Profile

+ Name/Key Functions:

System

Function

Claims Management

WC and Liability claims administration

Policy Management

Insurance policy register

Property Management

Property valuation module

Medical cost management

Medical cost management

Triangles/Loss Forecasting

Develops claim reserves, estimates future payouts

Allocation

Cost-of-risk allocation module

Imaging

Document management module

+Preferred Platform Architecture
Installations:

Mainframe - 0

PC-LAN - 400

Minicomputer - 70

PC Stand Alone - 50

Client/Server - 0

+ Software:

Software Level

Packages

Operating System

Unix, DOS; PCDOS, Windows; Windows NT; SQLServer

Applications Languages

Oracle; Access, Visual Basic; C++

Network Environments

Novell; Vines; Unix; 3COM LAN; ARCNET; IBM; 10NET

+Functionality:

Basic Analysis

Yes/No

Advanced Analysis

Yes/No

  • Claims Tracking

  • Claims Admin.

online hookup with other claim organizations

Y

medical mgt (including fee schedules)

Y

  • Claims Admin.

automated reserve calculations

N

1099 issuance

Y

"patterns of treatment" analysis

N

1-800 reporting

Y

litigation mgt.

Y

bank reconciliation

Y

  • Risk Financing Analysis

  • Insurance Admin.

financial models comparison

Y

Policy register

Y

Cost of Risk Allocation

Y

Certificates Tracking

Y

Actuarial (loss development & forecasting)

Y

Certificates Issuance

Y

  • Exposure tracking

  • Exposure tracking

Property valuation

Y

Property (ies)

Y

Benchmark analysis

Y

Vehicles

Y

  • Advanced Reporting

  • Loss Control Analysis
    (ie. OSHA Log, safety reports)

Y

detailed "drill down" analysis

Y

  • Basic Reporting & Graphics
    (standard, simple ad hoc)

Y

point-in-time reports

Y

interface with other software

Y

+Technology:

+ Basic System Price Range: Confidential by request

3. User Feedback:

We did not receive a client list from DTG. However, we do know of several installations at clients who report a favorable impression of the system as well as the service. The one area of complaint (common to all vendors) was on data conversion errors.

4. Summary Analysis

Major Strengths

Weaknesses

Comprehensive RMIS; proven track record

No major weaknesses detected without more clients to interview


INSURANCE SOFTWARE PACKAGES, INC.

3625 Queen Palm Drive
Tampa, FL 33619
800-237-8133
Key Contact: George Cannon, Director of Sales

1. Firm Profile:

+ Vendor Objective: To provide a detailed WC claims management information system to self-insureds.

+ Year Founded: 1985

+ Annual Revenue (1993): $ 2.5 million

+ Corporate Status: Owned by Pharmacy Management Services

+ Number of Direct Users: 140

+ Staff Breakdown:

Client System Profile:

Revenue Source

% Revenue

Timeshare systems

none

Standalone systems

50%

Customized system development

5%

Database Mgt./Conversions

30%

Employee Benefit Systems (24-hr. cov.)

15%

+Principal Target Markets:

Client Description

Installations

Public Sector

30

Captives, RRGs, Pools

5

Manufacturing

5

Retail

10

Educational

10

Service Provider (TPA, insurer, broker)

2

Health Care

10

+ Major Competitors: DORN; David; Pyramid;

+ Global Efforts: Some in Eastern Europe

+ Research & Development Activities: Rewrite of medical bill review system; rewrite to Windows.

+ Users' Groups: Not reported

+ Training: Standard training immediately on site up to five days after purchase. One free day at ISP per month; as needed help.

+ Related Services: N/A

2. System(s) Profile

+ Name/Key Functions:

System

Function

MediStar

Medical bill review

CompStar

WC claims administration

+Preferred Platform Architecture
Installations:

Mainframe - 0

PC-LAN - 120

Minicomputer - 0

PC Stand Alone - 20

Client/Server - 0

+ Software:

Software Level

Packages

Operating System

DOS; PCDOS

Applications Languages

FoxPro

Network Environments

Novelle Netware

+Functionality:

Basic Analysis

Yes/No

Advanced Analysis

Yes/No

  • Claims Tracking

  • Claims Admin.

online hookup with other claim organizations

N

medical mgt (including fee schedules)

Y

  • Claims Admin.

automated reserve calculations

N

1099 issuance

Y

"patterns of treatment" analysis

Y

1-800 reporting

Y

litigation mgt.

Y

bank reconciliation

Y

  • Risk Financing Analysis

  • Insurance Admin.

financial models comparison

N

Policy register

N

Cost of Risk Allocation

N

Certificates Tracking

N

Actuarial (loss development & forecasting)

N

Certificates Issuance

N

  • Exposure tracking

  • Exposure tracking

Property valuation

N

Property (ies)

N

Benchmark analysis

N

Vehicles

N

  • Advanced Reporting

  • Loss Control Analysis
    (ie. OSHA Log, safety reports)

Y

detailed "drill down" analysis

N

  • Basic Reporting & Graphics
    (standard, simple ad hoc)

Y

point-in-time reports

N

interface with other software

N

+Technology:

+ Basic System Price Range: Confidential by request.

3. User Feedback

User feedback was generally positive. ISP's WC claims administration module, with the medical bill review module, is a substantive stand-alone system.

4. Summary Analysis

Major Strengths

Weaknesses

Good WC and medical management system

Technologically behind

Lack of risk management analysis


PYRAMID SERVICES, INC.

90 Grove Street
Suite 207
Ridgefield, CT 06877
Phone: 203-438-3883
Key Contact: Bill Kuebler, President

1. Firm Profile:

+ Vendor Objective: To provide a comprehensive RMIS to large self-insureds and service providers in a cost-efficient manner.

+ Year Founded: 1988

+ Annual Revenue (1994): $3.2 million

+ Corporate Status: Owned by AON Corporation, Chicago, IL; joint venture with Resource Information Management System

+ Number of Direct Users: 165

+ Staff Breakdown:

+ Locations: Ridgefield, CT, Pittsburgh, PA (1), Atlanta, GA (1), Kansas City, MO (1), Ann Arbor, MI (1), San Francisco, CA, Denver,CO (1)

Client System Profile:

Revenue Source

% Revenue

Timeshare systems

Stand alone systems

Customized system development

Database Mgt./Conversions

Policy administration

Other (medical cost containment)

+Principal Target Markets:

Client Description

Installations

Public Sector

14

Captives, RRGs, Pools

11

Manufacturing

19

Retail

23

High Tech

3

Non-Profit

5

Private Consulting Companies

2

Educational

4

Service Provider (TPA, insurer, broker)

17

Health Care

10

Other (trucking, wholesale, construction)

57

+ Major Competitors: Corporate Systems; Risk Sciences Group; DAVID; DORN

+ Global Efforts: N/A

+ Research & Development Activities: Windows 95; upgrades on existing systems.

+ Users' Groups: Yes; All clients are members, and there are annual conferences sponsored by Pyramid.

+ Training: Both onsite and classroom training is available.

+ Related Services: N/A

2. System(s) Profile

+ Name/Key Functions:

System

Function

Claims Management

WC and Liability System claims administration

First Report

1-800 accident reporting system

Integrated Medical Mgt.

Integrated medical cost mgt. system

Medical cost management

Medical cost management

Risk Mgt. Information

Combines elements of System other system for client- assisted decision support in risk financ ing and risk control

Cost-of-Risk allocation

Cost of risk allocation module

+Preferred Platform Architecture
Current Installations: (Direct Basis)

Mainframe - 0

PC-LAN - 150

Minicomputer - 70

PC Stand Alone - 0

Client/Server - 15

+ Software:

Software Level

Packages

Operating System

UNIX, OS2; DOS; PCDOS; Windows NT; Windows; Oracle; Sybase; Gupta; SQLServer

Applications Languages

Visual Basic; C; C++

Network Environments

Novell; IBM based LAN; 3COM Lan; Arcnet; 10Net; Vines

+Functionality:

Basic Analysis

Yes/No

Advanced Analysis

Yes/No

  • Claims Tracking

  • Claims Admin.

online hookup with other claim organizations

Y

medical mgt (including fee schedules)

Y

  • Claims Admin.

automated reserve calculations

N

1099 issuance

Y

"patterns of treatment" analysis

N

1-800 reporting

Y

litigation mgt.

Y

bank reconciliation

Y

  • Risk Financing Analysis

  • Insurance Admin.

financial models comparison

Y

Policy register

Y

Cost of Risk Allocation

Y

Certificates Tracking

Y

Actuarial (loss development & forecasting)

Y

Certificates Issuance

Y

  • Exposure Base Analysis

  • Exposure tracking

Property valuation

Y

Property (ies)

Y

Benchmark analysis

Y

Vehicles

Y

  • Advanced Reporting

  • Loss Control Analysis
    (ie. OSHA Log, safety reports)

Y

detailed "drill down" analysis

Y

  • Basic Reporting & Graphics
    (standard, simple ad hoc)

Y

point-in-time reports

Y

interface with other software

Y

+Technology:

+ Basic System Price Range (includes initial and 1st year maintenance):

Number of Users

Platform

1

10-20

20-50

50-100

100+

Client/Server & LAN

$5,500

$34,000

$78,000

$112,000

$240,000

3. User Feedback

User feedback was mixed. Pyramid's functionality, innovation and use of technology are among the best in the RMIS industry. On the other side of the coin is the service problem, either in implementing new systems or ongoing maintenance. Essentially, the company has a small service staff, considering the size of the clientele.

4. Summary Analysis

Major Strengths

Weaknesses

Comprehensive RMIS

Service response questions from certain clients

Good application of available technology

Awaiting finalization of client/server installation on key product lines


RISK SCIENCES GROUP/PARADIGM INFOSYSTEMS

5620 Glenridge Drive 15395 SE 30th Street
Atlanta, GA 30342 Bellevue, WA
Phone: 404-847-4511 206-746-4559
Key Contacts: Jack Tatum, President, RSG;
Rick Hoehne, Principal, RSG (Paradigm)

1. Firm Profile

+ Vendor Objective: To provide a comprehensive RMIS to large self-insureds and service providers in a technologically advanced environment.

+ Year Founded: 1978

+ Annual Revenue (1994): $18 million

+ Corporate Status: Owned by Crawford & Company, Atlanta, GA

+ Number of Direct Users: 234

+ Staff Breakdown:

+ Locations: Ridgefield, CT, Pittsburgh, PA (1), Atlanta, GA (1), Kansas City, MO (1), Ann Arbor, MI (1), San Francisco, CA, Denver,CO (1)

Client System Profile:

Revenue Source

% Revenue

Timeshare systems

37%

Stand alone systems

10%

Customized system development

15%

Database Mgt./Conversions

21%

Other (medical cost containment)

3%

+Principal Target Markets:

Client Description

Installations

Public Sector

5

Captives, RRGs, Pools

3

Manufacturing

45

Retail

66

High Tech

57

Non-Profit

0

Private Consulting Companies

0

Educational

6

Service Provider (TPA, insurer, broker)

33

Health Care

5

Other (trucking, construction)

131

+ Major Competitors: In-house systems; carrier systems; J&H STARS; Pyramid; Corporate Systems; Anistics

+ Global Efforts: Significant European activity (UK) and in the Far East.

+ Research & Development Activities: Full release of client/server on Sybase and Oracle; state expansion on provider bill audit.

+ Users' Groups: Yes; 110 members.

+ Training: Both onsite and classroom training is available.

+ Related Services: Crawford & Company services, from claims adjusting and claims administration to Sentinel bill audits/medical reviews.

2. System(s) Profile

+ Name/Key Functions:

System

Function

Claims Admin. System

WC and Liability claims administration

First Report

1-800 accident reporting system

Integrated Medical Mgt.

Integrated medical cost mgt. system (hook in with Sentinel)

Medical cost management

Medical cost management

Risk Management Information System

Comprehesive module combining elements of other systems for client-assisted decision support in risk financing and risk control.

+Preferred Platform Architecture
Current Installations: (Direct Basis)

Mainframe - 220

PC-LAN - 6

Minicomputer - 0

PC Stand Alone - 2

Client/Server - 6

+ Software:

Software Level

Packages

Operating System

Nomad; Windows NT; Windows; Oracle; Sybase; Teradata; SQL Server; 4th Dimension (Mac version)

Applications Languages

Nomad procedural language; Visual Basic

Network Environments

Novell; IBM-based LAN; Mac

+Functionality:

Basic Analysis

Yes/No

Advanced Analysis

Yes/No

  • Claims Tracking

  • Claims Admin.

online hookup with other claim organizations

Y

medical mgt (including fee schedules)

Y

  • Claims Admin.

automated reserve calculations

N

1099 issuance

Y

"patterns of treatment" analysis

Y

1-800 reporting

Y

litigation mgt.

Y

bank reconciliation

Y

  • Risk Financing Analysis

  • Insurance Admin.

financial models comparison

Y

Policy register

Y

Cost of Risk Allocation

Y

Certificates Tracking

Y

Actuarial (loss development & forecasting)

Y

Certificates Issuance

Y

  • Exposure Base Analysis

  • Exposure tracking

Property valuation

Y

Property (ies)

Y

Benchmark analysis

Y

Vehicles

Y

  • Advanced Reporting

  • Loss Control Analysis
    (ie. OSHA Log, safety reports)

Y

detailed "drill down" analysis

Y

  • Basic Reporting & Graphics
    (standard, simple ad hoc)

Y