Our Industry | History of Innovation

The Foundation

The history of insurance technology in Columbia began in 1869 with the founding of Seibels & Ezell, an insurance agency. Given that General William T. Sherman and his army had burned Columbia to the ground in 1865, there could not have been much property to insure in those days. Nonetheless, Seibels and Ezell began a company that would eventually become known as SeibelsBruce Company that still exists today, well over a 130 years later. The company's founding spawned a long, notable, and ongoing legacy of innovation in the insurance business. The first notable achievement in this regard was Edwin G. Seibels' (1866-1954, and son of the founding Seibels) invention of the vertical filing cabinet which revolutionized record-keeping. Edwin Seibels and his younger brother, John J. Seibels, took over the family business when their father died and grew and diversified the company to global proportions from its Columbia base.

The Digital Age

In 1972, SeibelsBruce developed the Policy Management System (PMS), an integrated policy and claims administration system that took advantage of visual data display. The company began marketing the system to other insurers in 1974. PMS became a separate division of the company in 1976 and by 1980 there was an IPO for the Policy Management Systems Corporation (PMSC).

By the mid-1990's PMSC had become the largest company of its kind that focused on computer services for the global insurance industry. The company achieved revenues of $650M, had 6,000 employees in 30 countries, and was traded on the New York Stock Exchange. It was acquired by Computer Sciences Corporation (CSC) and still operates today as the largest part of CSC's Financial Services Group.

Equally as important in the development of Columbia and South Carolina's emerging leadership in insurance technology is the story of how Columbia has come to be a place where more health insurance claims are processed than anywhere else in the U.S., and probably the world. Joe Sullivan, CEO of Blue Cross Blue Shield of South Carolina (BCBSSC), and his successor Ed Sellers catapulted their firm into a major force in insurance claims processing. BCBSSC now processes over 2 million health claims a day and is ranked in the top 3% of data centers worldwide. BCBSSC's emergence as a global insurance and healthcare leader started with a corporate philosophy on investing in technology and innovation. BCBSSC has enjoyed 20+ years of profitability, is the largest private IT employer in the state, has become the largest TRICARE and Medicare claims processor in the nation, and is considered one of South Carolina's largest employers.

Diversification & Growth

Throughout Columbia's industry growth in the 1980's and 1990's, other insurance technology firms began setting up offices in Columbia to take advantage of the growing pool of insurance-technology-savvy employees. There were also entrepreneurial start-ups as individuals saw opportunity and embraced the risk of a new business venture. AcroSoft is a notable example, but there are others.

When CSC acquired PMSC, Larry Wilson (then CEO of PMSC) left to become involved in venture capital. He eventually affiliated with FirstMark Capital, also known as Pequot Ventures, and through them spawned a number of Columbia-based insurance technology companies, including Eagle Eye Analytics and Dovetail Insurance.

Today, the insurance technology industry in Columbia continues to grow and is now home to over 30 insurance technology and services companies. The spirit of innovation and collaboration can be seen in ITS|SC, its members, partners, and affiliates.