Having covered this industry these past 10 years, one fact hasbecome abundantly clear to me: Insurance companies are scared todeath of technology vendors. In truth, they don't seem to like ortrust them much, either.

That's not to say, mind you, that some vendors haven'tcultivated positive relationships with carriers. But when it comesto tech vendors as a whole, insurers tend to see them the same waya normal consumer would view, well, an insurance salesman(shudder).

We all know that insurance is far from the cutting edge oftechnology, so it comes as no surprise that insurers would be waryof whatever new, whiz-bang products or services the vendors areselling. It's the fear and loathing of tech vendors, however, thatseem to come out of nowhere.

But is this fright and froth really some pathological emotionalaberration that defies reasonable explanation? I hardly thinkso.

Let's take a look at the fear first.

Ironically, insurance was at the vanguard of tech when it beganadopting mainframe technology in the 1970s. The problem with that,as I have noted elsewhere, is that mainframe technology has workedall-too-well in our data-intensive environments.

If it's not broken, insurers are not going to fix it, even ifyou promise them something better.

New and innovative technology sounds risky to them, and we knowa thing or two about risk in this industry. So carriers arenaturally fearful of those who come to them with risky (andexpensive) ideas, no matter how appealing the promises attached tothose ideas.

These "people" come along and want to sell insurers somethingthat will involve ripping out their tried-and-true systems andreplacing them, disposing of the old hardware and software, andre-training their people--all at a considerable cost in time andmoney.

To the industry, this sounds like so much snake oil. Is it anywonder insurance companies would not trust those who promote suchcure-alls? Is it shocking to think that carriers would fear takingon such risky ventures?

And, let's face it, is it illogical to believe that insurerswould dislike people who insist on bringing to their doorstepsproducts and ideas that take them out of their comfort zones?

It is certainly true that insurers are very interested in thepotential benefits offered by technology, but they bristle whenthey're told that they have to make sweeping changes in operationsand even corporate culture in order to reap those benefits.

While there's always room for improvement, insurance companiesare very comfortable where they are. Being part of a strong andvibrant industry that minimizes risk and maximizes profits is justfine with them, thank you.

Then there's the fact that insurance companies have been burnedin the past by technology--witness the customer relationshipmanagement debacle.

Never mind that most insurance CRM failures could be laid at thedoorsteps of the customers who declined to do what was necessary tomake the technology effective. A failure is a failure, and failurescares people.

In the broader scope, insurers have also looked with interest onthe dot-com boom and bust. Doubtless they are patting themselves onthe back for not getting involved in ventures that proved, in manycases, to have been far too risky. They see a lesson learned, andnow guard their companies against the dreaded technology incursionslike a ravenous bulldog watches over a recently acquired side ofbeef.

Yet, at least some people in this industry know deep down intheir hearts that there are new and better ways to do things--andsome of those ways don't involve ripping out and replacing all ofone's systems, nor do they carry significant risk for thecompany.

So what are insurers afraid of? Why does the thought of anotherproduct demo give them the heebie-jeebies? In short, they areafraid of change--especially when they can see no pressing need forit.

They are also afraid of being ripped off by unscrupulous vendorswho try to foist on them something they ultimately do not need. Andthey don't like or trust those who attempt the foisting.

All of this is understandable, but it is not immutable.

The primary task for vendors in the insurance market today is torecognize the strong reservations insurers have about technologyand to craft messages in such a way that carriers don't feelthreatened, either personally or professionally.

The mistrust, fear and loathing are likely to persist for sometime, but if vendors can establish a solid record of reliabilityand trustworthiness, the relationships--and the bottom lines forboth parties--should improve.