While 97% of the attendees of the Quicken® InsureMarket® Annual Carrier Conference reported that they have already established an Internet presence to support their business, nearly 85% felt that the insurance industry is too laden with unnecessary red tape and paperwork to fully utilize the Internet to its fullest potential.
Quicken InsureMarket, a service of Intuit Inc. (NASDAQ: INTU), surveyed insurance carrier representatives during the annual conference held last week. Of the companies surveyed, 85% believe that the Internet will change the way Americans shop for insurance and the time and cost savings will eventually drive most Americans to shop for insurance online.
Nearly two-thirds of the respondents maintain a company Web site and participate in an online insurance marketplace. Almost all of these carriers (95%) offer some form of online policy quoting service, but less than half actually offer online purchasing. When it came to providing sales sites, customer links and tools, the percentage dropped well below one-third.
Ira Magaziner, a former senior advisor to the President on U.S. Internet policy commented in his keynote speech at the Carrier Conference. "It doesn't mean that the Internet will take over 100% of any market or any channel of distribution. But the percentage that it does take over will be more efficient, and grow faster than the traditional channel. Therefore, even if it gets only 20% or 30% over the next decade, if you're not there, you are going to miss out on the highest growth part."
Steven Aldrich, General Manager for Quicken InsureMarket added, "The survey findings pinpoint the largest challenge that we face in bringing the insurance market to the Web. By 2002, it is projected that business-to-consumer goods and services on the Internet will represent a $130 billion medium. Quicken InsureMarket is spearheading the information revolution by combining the speed, convenience and privacy of the Internet to bring the best products from the most-respected insurers in the industry. Our tools, information and business relationships further help empower the consumer in all their insurance needs."
The Third Annual Quicken InsureMarket Carrier Conference was held during October 4th through 5th at the Sutton Place Hotel in Toronto, Canada. The key concept shared by all the participating insurance companies is that consumers should be able to buy insurance over the Internet.
