Embracing Challenges

Rory Read knew he was in for a challenge when he joined Columbia Insurance Group five years ago. Top executives acknowledged the midsize regional carrier was in "extreme catch-up mode" and needed to make changes, particularly within IT, to remain competitive.

"We needed to get our applications out quicker, catch up with our competitors, and make it easier for our agents to do business with us," Read explains.

With Read's help and strong executive support, Columbia Insurance Group spent several years implementing innovative solutions to improve productivity and efficiency, lower costs, and level the playing field. Along the way–and as an affirmation of its efforts–the company received several IT awards.

Based in Columbia, Mo., the carrier offers 26 product lines in personal, commercial, and farm insurance. Its 2006 net written premium was $211 million.

When Read was hired as vice president of IT in 2002, Columbia Insurance Group relied on a decades-old processing system, paper-based transactions, and a company Web site that was primarily informational. Read's mandate was to update infrastructure, improve operational efficiency, and augment staff.

First, Read restructured the IT department by consolidating functions into two areas: application services and operations/network services. He appointed a manager for each area to be responsible for day-to-day operations. He also established a business analyst function and hired additional staff. Today, the IT department consists of 28 employees.

Next, Read worked on upgrading the company's infrastructure. He transformed the carrier's voice and data telecommunications functions; implemented document management, imaging, and workflow applications; reconfigured data center hardware and systems software; upgraded the corporate intranet; and rolled out additional real-time Web applications for agents.

"We've seen marked productivity increases, lower corporate expenses, and greater application functionality through these in-house and vendor-installed systems," Read says. "As a result of the contributions from these initiatives, our premium has grown by about 70 percent with 25 percent fewer employees."

One of those initiatives is a straight-through processing solution for the company's three business-owners policy (BOP) products for retail, garage, and contractors. Rolled out a few years ago, the application offers agents real-time quoting capabilities. Since its introduction, Read says, the average time to issue quotes has dropped from five days to one day and quote activity has more than doubled.

The straight-through processing solution also has garnered several awards for the carrier. These include IASA's inaugural 2005 Technology Achievement Award, Celent's Model Carrier award in 2007, and A.M. Best's E-Fusion Award in 2004.

This year, Read and his team have worked on 17 major IT projects, including building an in-house claims administration system, implementing online processing for commercial lines and private passenger auto, and launching an online farm quoting application.

Initially, Read did not intend to pursue a career in IT. When he was in high school, he wanted to become a scientist, investment banker, or economist. He began working in IT in 1969 at Allstate while pursuing his bachelor's degree in business at DePaul University, where he also later earned an MBA.

"By the time I got my bachelor's degree, I had been in the field for multiple years, so I just kept going," he explains.

Read stayed with Allstate until 1980, when he joined startup Bankers Multiple Line Insurance, a subsidiary of Bankers Life & Casualty. He then worked in management at PMSC (now CSC) in Columbia, S.C., and as CIO of ICW Group in San Diego before joining Columbia Insurance Group.

Although Read has accomplished much since he joined the carrier, he acknowledges that a lot of work remains. "We're still doing a little catch-up in some areas, but we're a lot further ahead than we were five years ago," he contends.

Eventually, Read expects the company will need to overhaul its entire legacy systems environment, a challenge he relishes. "Most people don't want to be around when that happens," he says. "I, on the other hand, would love to do that."

Sharon Baker is a freelance business writer based in Charlotte, N.C.