It wasn't that long ago property and casualty insurers weresimply using the Internet as a marketing tool, presenting staticWeb pages with product and service information. Today, though, muchhas changed, for both customers and companies.

Policyholders can go online to review policies, pay premiums,file and track claims, and change deductibles.

The Internet also is driving dramatic market and operationalchanges for insurers. It is making it easier for companies thathaven't traditionally sold insurance to enter the business. Travelagents and car rental companies, for example, can incorporatetravel insurance on their Web sites with relative ease.

Insurers, meanwhile, are deploying powerful Internettechnologies to gain competitive advantage and improve efficiency.These technologies offer the potential to streamline lossreporting, accelerate claims processing, and improve claimsinvestigations and vendor selection.

The insurance industry standard for notice of loss to a carrieris "as soon as practicable." But in the eyes of many policyholderswho have suffered a loss, the standard is "right away," or as soonas the loss occurs.

To achieve that standard, carriers need to provide policyholderswith the ability to report a claim in the manner they desire,whether by phoning a call center, contacting their insurance agent,or going to a Web site.

A key element of providing such a high level of service topolicyholders is developing the capability to accept loss noticesvia the Web.

A homeowner may want to go online to report a vehicle theft,burglary loss or hail damage. A motorist may choose to notify hisor her carrier of an accident using a wireless personal digitalassistant. To serve either of these claimants, carriers need todevelop the platforms and interfaces to allow Web connectivity.

Use of Internet and wireless communication will continue to growas technologies advance and policyholders increasingly expect suchcapabilities.

The proliferation of wireless phones equipped with built-incameras opens the door to a scenario such as this in thenot-too-distant future: A claimant is involved in an accident,takes photos of the vehicle damage with a camera-equipped phone,and then attaches them to a notice-of-loss e-mail message sent tothe carrier.

The Internet also can help improve claims management. When aclaim arises, adjusters and examiners must investigate, negotiatesettlements and authorize payments. Meanwhile, investigators dealwith claims in which fraud or criminal activity is suspected.

Insurance companies and independent adjusting firms employadjusters, appraisers, examiners and investigators to handleclaims, interpret and explain policy or regulations, and resolvebilling disputes.

Using Web-based systems, claims adjustors can--from a singlescreen--access policy information and current claims data.Litigation managers can view current billing and case studies.Agents can make address changes without ever contacting a callcenter.

Tracking capabilities allow monitoring of individual claimsstatus in real-time. Claims rules embedded in systems help provideconsistency among claims resolutions.

Improvements provided through such Web-based capabilities caninclude reduction in claims processing expenses, faster claimsprocessing and better customer satisfaction.

A claim investigation can have numerous aspects, depending onthe nature of the loss. Comparative or contributory negligence maybe a factor, raising the issue of subrogation.

An outside resource may be needed to assess collision damage anddetermine if a vehicle has been totaled. If it is a total loss,salvage arrangements must be made. Also, signs of potential fraudmay warrant further investigation.

New technologies are emerging that can help address the manyquestions associated with claim investigation. For example,consider the potential of using the Web and a global positioningsystem to help manage and expedite a claim.

A vehicle accident loss is assigned to a claim representative,who contacts the insured to find out where the vehicle is located.Upon capturing the details regarding the vehicle's damage, therepresentative determines if there is sufficient damage to bring inan appraiser.

Using a handheld or desktop computer, the representative pullsup a Web page that shows a GPS-equipped appraiser is nearby. Aquery to a central assignment system indicates the appraiser hasthe capacity to handle the claim, and the representative's requestfor support is fulfilled.

In today's highly competitive market, and with carriers facingever increasing customer service expectations, it is essential forinsurers to improve the productivity of the field staffworkforce.

A Web/GPS solution can significantly boost efficiency bydynamically assigning resources located near where work needs to bedone, rather than relying on static, map-based assignments.

It is important to recognize that deploying such tools is acomplex undertaking, involving satellites, internal systeminterfaces and other functionality.

The Internet will continue to expand in importance as a way forinsurance companies to communicate with and serve customers.Through Web-based services, insurers can enhance relationships withproviders, vendors and other partners.

The growing use and capabilities of Web-based technologies alsowill continue to transform how insurers conduct day-to-daybusiness, opening the door to cost savings and greater operationalefficiency.