Been there, how'd they do that? E-Fusion 2002 revealed an insurance industry with both feet firmly planted on the Internet. (E-Fusion Conference Technology).

The Internet may be disappearing from the insurance industry As in "The Internet" as shorthand for a fearsome tsunami set to overwhelm insurers while helping startups surf to new markets.

That's one key difference between E-Fusion 2002, A.M. Best Co.'s annual Insurance & Technology conference, held in Washington, D.C., and its previous incarnation in 2000 in Providence, R.I. The 2001 event was cancelled in the wake of Sept. 11.

What a difference two years make. Other observations from this year's event:

Two years ago in Providence, Hussein Enan of online aggregator Insweb.com was mobbed by analysts and investment bankers following his presentation. This year, investors and tech startups were a smaller share of the mix, but questions remained plentiful, mainly from insurers and brokers. Some remain skeptical about the long-term viability of the aggregator model. Others gave Insweb the grudging respect accorded a survivor. QuoteSmith.com chairman Robert Bland, also an E-Fusion presenter, was quick to point out that the dot-coin surge has ebbed, but competition has not diminished. QuoteSmith and Insweb were better financed and better grounded in insurance basics than many of the now-defunct startups.

Insurers are proud of their online efforts. The new E-Fusion Award (www.efusion2002.com) drew a strong preconference response, with 67 entries submitted by deadline.

Agent/broker interface is one of the hottest areas of online development for insurers. Gone is the old excuse that producers are unwilling to invest in technology. Most have high-speed connections and are coming to expect high-energy, full-service sites from carriers.

Insurers have been quick to embrace fresh technology initiatives, such as Microsoft's .NET framework and Java Server Pages. Others reported they are sticking with the systems that they started with on the Internet, such as Macromedia's ColdFusion server technology. The prime consideration, however, is building a platform with room to host nearly all tech functions now handled by pre-Internet systems.

Activity may be slowing on insurers' efforts to develop sites that reach out directly to consumers. Perhaps that's because insurers don't see the payoff, or because online dollars are being shoveled in the direction of communicating better with agents and brokers. The focus is clearly on business-to-business relationships, rather than on E-commerce, retail-based development.

Even young companies that start out with a clean technology slate, such as Baltimore's American Skyline Insurance Co., turn to trusted, brand-name technologies. Technology aside, the key ingredients to starting up are building relationships, emphasizing sales and relying on plain old hustle, said Earnest Hines, president and chief executive officer. Ironically, American Skyline is turning to automotive technology--brightly decorated PT Cruisers--to help brand itself in its target markets.

XML (Extensible Markup Language) may not be a cure-all, but it's the closest thing to a technological elixir, speakers implied. Kevin Kelly of Microsoft said his company's software is now built with XML capabilities throughout. For insurers, XML should make moot the three-decade battle over SEMCI (Single-Entry Multiple-Carrier Interface), he said, adding that XML replaces "duct tape and baling wire" of legacy systems.

There are no final answers. One keynote speaker, Markus Nordlin of Farmers Insurance Group, described a dizzying array of online services, products and initiatives his group rolled out, aimed at home office, agent and consumer use. Most fulfill their need, he said, but admitted that success is never certain and even then it's not obvious what's going to work until the commitment has been made. "You can lead an agent to the Internet, but you can't make them click," he joked.

Next year's event will be held Sept. 28-30 at the Hyatt Hotel in Philadelphia. Details are online at www.Efusion2003.com.