A measure of success. (Editor's Prologue).

Success cannot be measured by sales alone. That's what many insurers have learned after years of trying to use the Internet to sell policies. Direct online sales of insurance never really took off, although a significant number of auto and term life products have been sold over the Internet.

Insurance is a complex product. And the process of explaining it to consumers, gathering their information and finalizing the deals is often too involved to be done online.

While many insurers, brokers and aggregators continue to pursue online sales, others have moved to Plan B-- using the Web to improve service for agents and customers. It is here that many insurers expect to see measurable results, in terms of customer satisfaction and retention and providing service and content to agents.

"Very little of what's going on has anything to do with selling policies directly to consumers online," said Judy Johnson, vice president with Meta Group, an information technology research and consulting group based in Stamford, Conn.

Johnson said insurers now are investing in opening portals between the company, its agents and brokers and customers--and within different parts of the company. This is part of a new online business model that focuses on providing service to agents and consumers, she said. The technology is robust, but the industry's business processes are lagging, she said.

"We have to crawl before we walk, and we have to walk before we run," Johnson said. "We're still crawling."

This month's cover feature ("What Works Online," page 24) takes a closer look at five companies that are having some success in the online marketplace. The numbers speak for themselves. But the true measure of success--whether it be increased sales, improved service or customer retention--may be years away.

David Hilgen is editor. You may reach him at [phone], Ext. 5038, by writing to A.M. Best Co., Ambest Road, Oldwick, NJ 08858, or by e-mail at [e-mail]. The e-mail address for Best's Review is [e-mail].