Insurance Data Processing, Inc. (IDP) Turns 50

One of the nation's first property and casualty information systems suppliers cites employee expertise and customer-driven operations behind landmark anniversary.

Insurance Data Processing, Inc. (IDP), one of the first developers of property and casualty (P&C) insurance systems established in the U.S., celebrates its 50th anniversary during the summer of 1999.

President and CEO Gary Gilbert credits the hard work of IDP employees and the close relationship between the company and its customers and vendor-partners for its 50 years of success. "We've grown and evolved along with our clients," he explains.

IDP software products, known collectively as VISION Systems, handle virtually all phases of property and casualty insurance information--from quoting and rating, to policy issuance, billing, cash and claims handling. IDP systems are known for their overall efficiency and functionality, qualities attributable to their integrated design, and also to the customer input IDP blends into both its products--and its operations. "IDP hosts at least one gathering of clients each year, during which we learn what new or upgraded system functions can most benefit our users and how our business operations can best support our client base," Gilbert notes.

Founded in 1949 as a non-profit cooperative by a group of six mutual insurance companies and a reinsurance broker, IDP has evolved into a leading supplier of P&C insurance management software systems and related technical services. Gilbert credits the corporation's knack for attracting exceptional talent to key insurance-business and technical skill positions behind IDP's ability to develop innovative products. "IDP has historically filled these critical slots with resourceful and imaginative people," he says. "One of the things candidates find attractive at IDP is a culture of creative freedom. We encourage our talent to explore new ways of doing things and, as a result, we boast an impressive record of innovation."

Gilbert notes that IDP launched its first electronics-based insurance information processing products in 1963, accounting for 36 years' experience with high-tech insurance management. In 1969, IDP launched a major total system development program utilizing high-speed computers for the first time. The chief system designer was Richard Prusak, a currently active senior vice president of IDP. This service bureau system has been successfully utilized by hundreds of insurance and reinsurance companies nationwide. In 1979, IDP decided to move into software development designed for remote processing via terminals connected to a computer in IDP's office or used in an insurance company's own office. This system is known as VISION-MIS TM. IDP's most recent innovation is VISION 21TM, a fully Y2K-compliant, Windows 95, 98, NT server policy management system.

Partnering
An important factor underlying IDP's success has been its ability to partner with end users and also highly skilled vendors, such as COGNOS and JetForm Corp. "Partnering enables IDP to custom-develop information processing products that meet the specific needs of small and midsize P&C insurers," Gilbert says. "The average IDP customer has been with us for 17 years, and some of our relationships date back to the very beginning of the company. New Castle Mutual Insurance Co., for example, has been with us since 1949, and Franklin Mutual Insurance Company, since 1953. This enviable record reflects our ability to develop business-enhancing systems, and to partner successfully for selected functions, such as imaging and specialized document management capabilities."

Gilbert notes that company history demonstrates IDP's ability to keep pace with critical industry issues. "Two major IDP strengths have always been flexibility and responsiveness--a willingness to change direction fast, when that change is necessary to meet our clients' needs," he says. "For example, last year we ensured that all VISION systems became Y2K compliant--the process was completed in a super-fast 10 months."

As the company moves into the new millennium, Fred Scott, who served as CEO for over 36 years and is now chairman of the board, expresses his high level of confidence in IDP's present management team, headed by Gilbert. "Turning over a company that you have developed during so many years to someone else can be difficult," he says. "But making the transition with Gary has been a pleasure."

Business Growth
IDP has grown from a $100,000 revenue company with five employees in 1963 to a multi-million dollar company in 1999. While the organization's 50th anniversary has provided an opportunity for management and employees to reflect on past successes, the company's real focus is on the future.

"Our objective is to achieve a minimum of 15% growth per year for the foreseeable future," Gilbert explains. "We will continue to provide exceptional service to our growing base of customers."

If the past 21 months are any indication, IDP should realize that growth with room to spare. Since Gilbert took the company reigns as president and CEO in July 1997, IDP revenues have increased from $6.3 million to $7.8 million--a 24% increase. Operating income has jumped 120%. The privately-held company currently employs 80 people.