Tenfold Growth in Two Years

R.E. Moulton's Underwriting Business Soars With the Help of Software Design and Development Expertise from Alexander Associates

R.E. Moulton, Inc. (REM), with premiums of over $150 million annually, is the leader in underwriting Employer Stop Loss insurance for U.S. companies. Stop loss insurance makes self-funded employee benefit plans possible by minimizing the risk that one employee’s medical expenses will swamp an employer’s ability to fund medical benefits for all employees. As a managing general underwriter (MGU), REM helps insurance company clients reduce their self-funding costs by providing underwriting, policy administration, and claims adjudication for the TPAs that administer these programs.

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R.E. Moulton’s Mission

Provide a range of specialized insurance products and services to insurance companies, brokers, and third party administrators that enable these entities to provide better, more cost-effective service to their clients: smaller companies that self-fund their employee benefit programs.

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Project History

In 1998, REM management determined that its existing underwriting, policy administration and claims processing systems would not support Company growth plans. A major goal was to link current and planned sales offices with the corporate systems in the Marblehead, Massachussetts headquarters.

Additionally, the headquarters systems were manually intensive, not integrated, and hard to use. This caused REM’s expert underwriting and claims support professionals to spend too much time performing clerical tasks in order to provide quotes or render service. At the same time, the volume of under-writing requests for proposal being received by the Company was growing at a fast pace. It was clear that new productivity-enhancing applications and a corporate-wide intranet were needed to more fully leverage REM’s unique expertise and to exploit market opportunities. After meeting with several outside consulting firms, REM chose Alexander Associates to assess needs, then to design and develop new custom software systems.

Barbara Voigt, REM’s VP of Operations recalls:

"We chose Alexander Associates because they so strongly emphasized the value of a thorough needs assessment. They took the time to listen and to sort through many rather complex issues. After completing the assessment they developed a plan to get us where we needed to be."

The relationship with Alexander Associates began in mid-1998. By late 1999, new systems had been implemented to support the underwriting and premium collection functions. Data was successfully converted from the legacy system and users were trained.

Barbara Voigt recalls the dramatic changeover to the new system:

"When the new system went live, it was an uplift to the whole Company. User interfaces were logical and easy to use. Remote offices were able to access the same information as was available at headquarters. Accuracy improved. Our professionals were able to trust the numbers. There was a substantial increase in productivity, so much so, that we were able to grow our underwriting business by a factor of ten in two years without having to increase staff."

Today

Today, the underwriting staff is able to process as many as 3,000 RFPs a month, an unimaginable burden under the previous system.

Through their partnership with Alexander Associates, R.E. Moulton, Inc. was able to realize increased productivity and profitability, and to further strengthen their leadership position in the stop loss market.

As the REM’s former CFO, Fred Eichler put it,

"Alexander Associates has developed for Moulton what is probably the best system of its kind in the industry today."

The partnership between Alexander Associates and R.E. Moulton continues today
as Alexander supports and continues to enhance each of the REM systems.