La. Citizens: New Computer System Needed
Louisiana’s state-run insurer of last resort needs to replace its faulty $13 million computer system because the glitches are not repairable, according to the firm’s chief financial officer.
Problems with Citizens Property Insurance Corp.’s software have prevented the firm from producing financial statements since 2005.
A contractor has set up a separate database and programs that will allow Citizens to produce reliable financial statements, but every time they fix one glitch it’s replaced by a new one, Citizens chief financial officer Mark Brockelman told the state Insurance Rating Commission.
Brockelman said he’d like to issue bids for a replacement system within six months, adding that he’s not sure how much it would cost.
The current computer system was designed by Baton Rouge-based Strategic Business Solutions. The cost was split by Citizens and its contractor, the Property Insurance Association of Louisiana. The Property Insurance Association has asked an arbitrator to make Strategic Business Solutions return that amount.
The arbitration proceedings are confidential, but association officials have said they expect the process will take around a year to complete.
- Work Safety Group Releases List of ‘Dirty Dozen’ Employers
- California Sees Two More Property Insurers Withdraw From Market
- Beyond the Claim: How Social Canvassing is Transforming Insurance Fraud Detection
- California Chiropractor Sentenced to 54 Years for $150M Workers’ Comp Scheme
- Mother of 8-Year-Old ‘Violently Sucked’ into Houston Hotel Pool Files Wrongful Death Suit
- Report: Vehicle Complexity, Labor ‘Reshaping’ Auto Insurance and Collision Repair
- Poll: Consumers OK with AI in P/C Insurance, but Not So Much for Claims and Underwriting
- Ship Owner in Bridge Collapse Seeks to Limit Its Liability