Competing in the Virtual World: E-Commerce Factors that affect the Property-Casualty Insurance Industry

Electronic commerce has exploded; its expansion projections are consistently understated. We explore the current state of the property-casualty insurance industry use of the Internet for electronic commerce, by analyzing the factors that affect the expansion and use of electronic commerce in the property-casualty insurance industry. The insurance industry has embraced the use of technology to expand its market and to provide better customer service. Competition within the United States has expanded recently to include companies in Europe and Asia. A survey of property-casualty insurance company web sites was performed to determine what types of services and features are currently offered through the Internet. Thirty-six web sites were sampled and the results showed that while no insurance company currently offers a fully electronic policy purchase process, there are a variety of services that are provided for through their web sites. The more common web based features include the ability to locate an agent, the ability to find information about how to report a claim, and the ability request a quote. Use of the Internet as a tool for electronic commerce within the insurance industry has not yet been fully utilized.