Update: eCommerce and Its Use by Insurers CAS Spring Meeting Las Vegas May 9, 2000.
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Transcript of Update: eCommerce and Its Use by Insurers CAS Spring Meeting Las Vegas May 9, 2000.
Update: eCommerce and Update: eCommerce and Its Use by InsurersIts Use by Insurers
CAS Spring Meeting
Las Vegas
May 9, 2000
Internet sales are projected toInternet sales are projected to grow over time grow over time
Projected Sales ($billions)
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2
4
6
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12
1998 1999 2000 2001 2002 2003
Influenced
Direct
Source: Forrester Research
Current activity suggests these Current activity suggests these estimates may be lightestimates may be light
Estimated Visitors - Top Five Insurance Sites (millions)
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December 99 April 00
Top five sites received an estimated five million visitors in April
Hundreds of sites exist and draw traffic today, including
– Marketplaces
– Individual carrier sites
– Agencies
Source: topnine.com
But lower acquisition costs aren’t But lower acquisition costs aren’t guaranteedguaranteed
Attracting consumers can be difficult amidst the noise
– 3.6 million web sites exist, with 8.1 million registered domains
– Estimated 2 million new web pages created per day
The internet will be used by most players within each channel– Changes the way sales, service is provided– Should improve expense efficiency and service quality– Think “telephone”
The internet affects all facets of the The internet affects all facets of the insurance marketplaceinsurance marketplace
Acquisition is the most visible– Costs should come down over time– Consumers will expect such access, regardless of cost
impact
Other areas will see as dramatic (if less visible) change– Policy service of all types– Basic company operations
Service levels unheard of today will become the norm tomorrow
Winning companies will learn quickly to Winning companies will learn quickly to use the internet to advantageuse the internet to advantage
Improve efficiency from an expense perspective
Leverage the knowledge gains available
Adapt to greater market transparency
– Price– Practices