IVANS buys BWC systems-moves toward becoming seamless pathway for EDI

Rough Notes, Feb 1997 by Pillsbury, Dennis H

VANS started 1997 with the acquisition of BWC Systems, Inc., Cincinnati, a move that IVANS President & CEO Dan Carmichael said was "a major step toward achieving our goal of becoming a seamless electronic pathway for the insurance industry. With the acquisition of BWC Systems, IVANS is investing in its members' future by bolstering its value-added service offerings to improve members' business processes beyond network connectivity for EDI transactions," he added.

BWC Systems is a major provider of interface and EDI solutions for more than 85 insurance companies. It provides turnkey solutions that include software and services that minimize the use of companies' resources. BWC will continue with the same personnel and will operate as the new BWC Systems Division of IVANS.

BWC has expert knowledge of the property/casualty industry; ACORD, CSIO, X12 standards; and has established relationships with all major industry vendors. One of the tasks of the new division will be to monitor standards and respond proactively when changes occur. BWC's ability to respond quickly is exemplified by its introduction of a package of services only two weeks after Oregon mandated electronic reporting of auto liability information, Carmichael noted.

"Bringing IVANS and BWC together combines a vast amount of insurance experience," BWC President Bill Tedrick noted. "Both companies have a long and successful history in agency/company interface and we plan to build on that solid base. We have completed more interface projects jointly than all other vendors combined."

Jim Donaldson, BWC executive vice president, pointed to the synergy that exists between the two companies. "We've worked together for more than seven years and have similar corporate cultures that are solution-oriented. This acquisition is good news for IVANS and BWC customers," he added. "BWC has a solid package of EDI tools that augments IVANS' pathway to electronic commerce."

Dan Carmichael, while not disclosing the acquisition price, noted that the combined net revenues of the two companies should exceed $100 million in 1997. Gross revenues, which include telecommunications revenues, should hit some $400 million.

BWC Systems was incorporated in 1982 and has been serving the insurance industry with translation and interface products since 1985. Used by over 85 property/casualty companies, BWC provides turnkey solutions to insurers ranging from $6.5 million to more than $2.5 billion in direct annual premiums. BWC's products KeyLinkT and Access satisfy companies' requirements for agency/company upload and download interface. Other offerings include M.E.D.S.TM for software distribution; KeyLink for automobile liability insurance reporting, mortgage/lienholder transactions, workers compensation first report of injury and other interface and reporting packages.

IVANS was formed in 1983 as the sister organization of the Insurance Institute for Research/Agency Company Organization for Research and Development (IIR/ACORD). The first agency/company interface registration between J.V. Arthur, Inc. and The Maryland Insurance Co. took place in August of that year. It began working with BWC Systems in September 1990 to facilitate seamless interface implementation.