Systems Defined, LLC announces a strategic alliance with Encompass Software, a leading developer of software applications for the insurance industry.

Systems Defined, LLC, a provider of technical support services to application developers, announced the creation of a strategic alliance with Encompass Software, a software development firm that develops and implements Web-based insurance applications that allow agencies to efficiently rate new policies, save quotes, and complete & submit policies electronically.

Founded in 2001, Encompass Software has focused on enhancing policy processing of insurance firms by developing easy to use Web applications that streamline and enhance a companies ability to write policies and quickly adjust rating models to allow underwriters to maximize each policy's' return.

Systems Defined, a New York based consulting firm, is known for its ability to support application developers and their clients through each phase of the application development and rollout. Systems Defined provides User Acceptance Testing (UAT) and Implementation Support Services (ISS) to insure each installation meets and exceeds the project goals.

Encompass Software solution provides increased revenues as administrative tasks are reduced and better policy information reduces risks.

There are two ways that a company tries to reduce their catastrophe reinsurance costs (as opposed to other types of reinsurance -- per risk, quota share). First, they can non-renew policies that are extremely expensive. That is the easier of the two challenges as many reinsurance brokers will provide good suggestions here. The second way, is to avoid expensive policies coming in as new business. This is something that can be done very precisely and that is where Encopass Software can help.

From a business perspective, you can significantly reduce direct reinsurance costs which usually range from 20% to 40% of premium for wind policies. A five point reduction in these costs on just $10MM of wind premium would result in a $500k savings. One account reduced thier average cost 2.5% points in just one quarter.