La. Citizens: New Computer System Needed

August 21, 2007

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.

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