If you have any dobut that ACC will charge cyclists premiums - read this

If you have any dobut that ACC will charge cyclists premiums - read this

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Below is a full copy of an article that appered in Fridays Computerworld Nov 9 2009.

The writing is on the wall. You may also want to have a look at the article in the Hearlad on the weekend that quotes the head of the ACC John Judge extensively. 

The ACC is becoming an insurance company with insurance company style premiums that means the high risk groups that have already been identified in high ACC claims like cyclists will pay higher premiums. Don;t thisk this is going to happen" The ACC has already announced $500 insurance premium increases for motorcyclists.

We are next. An not talking about it won't change ACC's plans for us.

Guys we need to get our heads out of the sand and begin reacting now. Premiums (levies) of $300 to $500 per bike are currently under discussion.

 

ACC shifts gear with Major IT investment 

Facing the prospect of private sector competition  the Accident Compensation Corporation is gearing up its technology to deliver more flexible services and to work in a “more businesslike manner

The corporation is planning to invest in what it calls an “integrated insurance solution” in what some sources say will require a multi-million dollar transformation project.

“ACC is seeking technology solution to replace legacy systems that are no longer fit for purpose and which have had minimal investment for at least eight years,” the ACC 's Diane Bradley, who is responsible for the project told Computerworld.

The system will also allow ACC to meet the requirements of the Bill currently before parliament, to provide experience rating – no claim bonuses – and other risk sharing among other functions, she says.

Bradley says it will also allow ACC to connect some of its existing but isolated technology solutions.

“For example the systems that handles claims is separate from the system that calculates levies. The new offering will allow us to bridge that gap,” she says.

The system will also enable a higher level of levy payer self-service and deliver greater efficiencies, better data and better customer service, she says.

A tender document released last week fleshes that out and also reveals significant back-end architecture changes to support the new system.

The documents says ACC seeks technology that supports standard insurance policy administration, customer relationship management, product management and new management functions.

The requirement includes modules for sales management and quoting, and underwriting.

The project is to be introduced in phases over three years.

Currently, core systems are provided by Sun, Oracle,and IBM. Microsoft provides the office software.

Over the past few years,ACC has been implementing and upgrading a claims management system from Irish company Fineos. The new software will have to integrate with EOS, the Fineos claims system.

The RFP says that ACC is seeking to reduce the numbers of servers by 70 percent through virtualisation and consolidation.

It notes that the application server for its integrated premium system is unsupported and that the database is due to be unsupported next month.

Also, the Java code has been superseded.

“Significant investment will be required” ACC says.

Several other major functions are said to be out of scope.

Insurance industry sources say private insurers have dusted off their competitive proposals from the late 1990s when the market was briefly opened up to competition.

ACC posted a loss of $4.8 billion in its most recent financial year. The government subsequently introduced a Bill to raise levies and cut some entitlements amidst a debate  about whether ACC was and insurance company at all and whether it should have a to fully fund its future liabilities.