Users Distrust Internet Insurance Data Transfers
NU Online News Service, Nov. 5, 2:26 p.m. EST?Insurers have yet to convince consumers, particularly skeptical younger population groups, that the Internet is safe for policyholder transactions, a new poll has found.
The research findings were announced today by Old Greenwich, Conn.-based IVANS Inc., an insurer trade group that provides data networking and e-commerce solutions to the industry.
IVANS said that despite the higher levels of service and convenience offered by the Internet, when it comes to sending medical and personal property insurance information, security is a concern for the majority of consumers.
The organization reported that 77 percent of consumers surveyed say they are concerned with their doctors sending medical information to an insurance company over the Internet.
Additionally, 66 percent of survey respondents are concerned about the privacy and security of property claims information being exchanged via the Internet. IVANS said 2,059 adults participated in the telephone survey, conducted last month by Opinion Research Corp. International in Princeton, N.J.
The national survey included 1,024 men and 1,035 women 18 years of age and older, living in private households.
Clare DeNicola, senior vice president of network services for IVANS, said the results reveal that "there is a real opportunity for health and property-casualty insurers to educate consumers about the security measures they have taken to protect personal insurance data being sent over the Internet."
She said the findings demonstrate "that many consumers are not yet aware of the advanced networking technologies available today that can protect their data on the Internet."
In what IVANS said was a surprise, survey respondents most concerned about the security and integrity of their personal data on the Internet are under 45 years of age. Almost 70 percent of respondents are regular Internet users, with the majority performing online activities from their homes.
Ms. DeNicola noted that "insurance companies have a wide range of options today for securing data on the Internet, such as firewalls, virtual private networks, and public key infrastructure. The level of security provided varies among these solutions."
For instance, she explained, "a firewall does not secure data on the Internet, but prevents data from getting into a network, while PKI is one of the most secure options, but comes with higher levels of cost and management."
IVANS said that as insurance carriers roll out applications on the Internet, the level of security placed around the application and end-user access will vary based on the level of transaction taking place.
The group noted that, for instance, many health insurers provide information on their public Web sites regarding doctors and hospitals they work with, but when it comes to transferring a patient's claim data with those providers, they continue to use secure, private networks to meet security standards established by the Centers for Medicare and pending HIPAA regulations.
IVANS Networking, a business unit of IVANS, works in partnership with AT&T Business to provide enterprise-wide data network solutions to insurance organizations throughout the United States. More information on IVANS Networking Solutions can be found at www.ivansnetworking.com.
IVANS said that it serves over 475 insurance and healthcare organizations, more than 30,000 independent agents, and 12,000 providers.
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