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Lisa Valentine
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Arch Insurance CIO Scott McClintock Supports the Specialty Insurer’s Changing Underwriting Needs With a Flexible Platform

Scott McClintock, CIO, Arch Insurance Group When Scott McClintock joined Arch Insurance ($692.6 million in net income) in fall 2002 as VP of actuarial information services, the young company was working on establishing a technology infrastructure that would support its specialty insurance lines, including CAR/EAR (construction all risk/erection all risk), environmental liability, offshore energy, technical risk, and global marine cargo and aviation. Today, as CIO, McClintock says, his focus is o

I&T: Would you describe Arch Insurance's technology strategy as bleeding-edge, late-adopters or somewhere in between?

McClintock: We tend to be somewhere in between but shaded toward the leading edge. We don't want to be on the bleeding edge; there really is no reason for us to be there.

However, we are always looking for opportunities to use new technologies to do things better, faster and cheaper. We will look at newer technologies, but they have to be consistent with our long-term architectural strategy. We don't want to take a left turn and deviate from our core platform.

I&T: Are there any new technologies that you believe will have a great impact on Arch's operations?

McClintock: We have our eyes on any technology that provides increased levels of interoperability so we can continue to stitch together our business processes and become more efficient. We're looking at some of the Web 2.0 technologies and some of the collaboration approaches. That's still new to us -- we're going to dip our toe in the water a bit and try some things out.

I&T: Are you using VOIP technology?

McClintock: We are. Our modus operandi with new technology is to first do a proof of concept. We tried VOIP on ourselves in IT a couple of years ago to get a sense of how it operates and its pitfalls. We then rolled out VOIP to some of our newer regional build-outs in parallel with an upgraded PBX that can handle VOIP traffic. [Going forward], we'll take an incremental approach to VOIP and take advantage of opportunities for new build-outs or changes to our facilities.

I&T: How do you keep your technology staff engaged?

McClintock: First, we define what the company is trying to accomplish and how each individual fits into that overall strategy, and then tie that person's day-to-day activities to the strategy. Next, we prioritize what we are doing and how we are going to do it to support our architecture. This prioritization ensures that there is not a lot of wasted time.

Once people understand what they are doing and why they are doing it, we let them do their job without micromanaging. I think that's pretty powerful. People feel that they are contributing and that they have control over their contributions. They can voice their opinions and bring their creativity to an issue or solution.

We try to foster and encourage their thoughts about how to tackle a problem or how to use a different solution or perhaps pull together two or three different processes we may have not thought of putting together before. All that keeps people engaged and interested, [as does] having a good management staff that is supportive of those goals.

I&T: What qualities do you look for in your IT staff?

McClintock: We look for people who can operate effectively on a team -- we're not interested in "cowboys" who are experts in a type of technology but not effective on a team. We have discussions and consensus-building and we do compromise, but once we have a decision, we all need to perform to that decision.

I&T: What is your greatest challenge as CIO of Arch Insurance?

McClintock: The greatest challenge is to implement change in an effective manner, making sure that we are doing the right thing at the right time with the right people in the right way. Change can be very difficult to manage. Fortunately Arch is very supportive of change and allows us to take a fresh perspective on problems.

That said, we also have to be thoughtful and deliberate about how we implement change so that we're supportive of the business strategy rather than working at cross-purposes. In my career I've seen system implementations for which the technology is not as effective as it could have been if it was done or supported in a different manner.

Over time it's very easy for the effectiveness of technology to diminish. We need to make sure that the business is getting a return on its technology investment.

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