US Insurance and the Web: An Overview

August 10, 2001

Abstract

Boston, MA, USA August 10, 2001

U. S. Insurance & the Web:  An Overview

Celent Communications presents an overview of the ways U.S. insurers are embracing the Web to reduce administrative costs and increase communications with shoppers, policy holders, and agents

According to Celent's new report, US Insurance & the Web: An Overview,  the Web will not lead to a disruptive revolution in insurance sales. However, effective use of the Web for customer and agent communications is a critically important evolution for insurance carriers. 

The report includes the results of a survey conducted by Celent in July 2001 of the functionality of Web sites of the top 100 carriers in both Life/Health (L/H) and Property/ Casualty (P/C) Insurance, as well as the top 75 bank Web sites. 

38% of the top 100 P/C carriers and 54% of the top 100 L/H carriers have already implemented some type of Web-based agent extranet, while 29% of the P/C carriers and 43% of the L/H carriers provide some kind of policy holder account access

.

"In the last year or so, the dominant perception of the Web in the insurance industry has changed from that of a frightening challenge to established retail distribution channels to an enormous opportunity for potential savings in time and money," says Celent analyst Matthew Josefowicz, author of the report. "Some carriers reported increased efficiencies as great as 90% on communication with agents. Carriers who are slow to implement Web-based communication systems for their agents and customers will quickly find themselves at a competitive disadvantage."

Celent expects the impact of direct consumer online sales in the next five years to be negligible for the next five years compared to these cost savings. "The portals are serving an important marketing function by providing product information to customers, but their business models are based on sales," Josefowicz says. "While some of the portals may survive as Online Agencies, we expect most of them to disappear or be absorbed by larger companies that can leverage their marketing and technology values within a larger context."

A Table of Contents is available online.

of Celent Communication's Life/Health Insurance research services can download the report electronically by clicking on the icon to the left.

        

Send mail to info@celent.com with questions or comments about this Web site.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

 

Boston, MA, USA August 10, 2001

U. S. Insurance & the Web:  An Overview

Return to report abstract  

EXECUTIVE SUMMARY

3

THE US INSURANCE MARKET

5

THE ROLE OF THE WEB

8

 

Agent Extranets

11

 

Web-enabling Legacy Systems

14

 

Survey of Carrier Web Sites

16

 

Survey of Bank Web Sites

17

 

The Portals

19

OUTLOOK

21

STRATEGIC IMPLICATIONS 22
        

Sign in to download reports and access personalized information