Study: Agents Lead Carriers On Tech Use

By Mark E. Ruquet

NU Online News Service, March 4, 12:12 p.m.?Insurance professionals are not using the Internet effectively topromote business, but agents are leading companies on thetechnology curve, according to a report by agents and insurers.

The 2001 Future One Technology study, a cooperative effort ofthe Independent Insurance Agents of America and 26 major insurancecompanies, found insurance professionals agree in concept ontechnology issues, that is to facilitate business between them.

But the insurance community's use of technology does not meetconsumer expectations. Online consumers, the survey found, use theInternet for financial transactions and are looking for newinsurance relationships online.

The report found consumers shopping for insurance online are notsatisfied with their experiences and rarely make onlinepurchases.

When it comes to technology, independent agents were found to beahead of many carriers. The carrier's Internet capabilities variedwidely depending on size and market focus.

Specialty carriers, state-sponsored carriers and some smaller,regional, personal and commercial lines companies appear to be lessfocused on technology strategies. Fewer than half of carriersrequire agents and brokers to have the minimum of a T1 connectionby the end of 2003. However, 52 percent of agents said they expectto meet or exceed that requisite.

Nearly all insurers expect to provide online company and productinformation to producers and consumers soon. Currently, 85 percentof carriers provide this information to producers and 79 percent toconsumers.

Carriers have set high goals for adding online informationofferings. Only 55 percent of agents can view loss histories onlinetoday, but within two years nearly all carriers expect to offerthis capability.

The survey asserts that independent agents are gravitating tocarriers with compatible online strategies and this is leading to arealignment between the two.

Technology issues that cause this realignment include thecarrier's perceived level of commitment to technology, the speedand efficiency with which agents can serve customers, and the useof systems that can make an agent's job easier. Few companies saytheir Internet strategy is designed to attract new agents.

The data for the 2001 Technology Study was collected primarilyonline and by fax. The respondents included 2,887 consumers; 201small business owners or employees who make decisions aboutinsurance; 667 agents; and 35 companies.

Information on how to obtain a copy of the report is availableat www.independentagent.com.