Consumers Choose Insurance Carriers for Online Service Over Nontraditional Players.

Business Editors/High Tech Writers

GREENWICH, Conn.--(BUSINESS WIRE)--Jan. 31, 2000

Demand for online purchase and claim filing increasing, survey says

Nontraditional players may be breaking into the online insurance market, but consumer loyalty is with insurance carriers, according to a recent survey conducted by IVANS Inc., an e-business solutions provider for the insurance industry.

Thirty-six percent of respondents said they would most likely purchase insurance over the Internet directly from an insurance carrier opposed to a search engine (20%), insurance mall (8%), or a brokerage (5%) or banking (4%) site. Nearly half of the consumers surveyed said they would be most likely to purchase automobile coverage electronically, followed by life (23%), homeowners (20%) and health (13%) coverage.

Forty-eight percent of those responding have Internet access at home while one-third have access to the Internet at work. Findings indicate a parallel between those interested in researching cars online and researching auto insurance online. Nearly a third of the 36% who researched buying a car online said they have also researched buying auto insurance online.

&uot;The number of educated consumers is growing as the Internet continues to provide easy and convenient access to information on products and services,&uot; said Dan Carmichael, president and CEO of IVANS, who presented the findings at IVANS Chief Executive Forum today in New York. &uot;Insurance carriers must develop a solid e-business strategy today if they want to respond to growing customer demands and retain customer loyalty tomorrow.&uot;

Already, the electronic market is testing the survival of the industry's fittest. Ten percent of survey respondents said they would switch insurance carriers if their insurance carrier did not offer the ability to purchase insurance and file claims online, if another carrier did. This number is likely to increase as more insurance companies strive to secure their niche on the Internet.

&uot;Our survey shows that consumers are using the Internet to window shop for much more than books, CDs and homes,&uot; added Carmichael. &uot;Online insurance is the next logical step consumers will be taking, and carriers must be ready to turn browsing into business.&uot;

More than a third of all respondents said they are aware that their auto, health and life insurance carriers have an online presence. Nearly half (44%) of respondents said they are aware of their health insurance carrier's Web site; 39% said their auto insurance carrier has a Web site; and 33% said their life insurance carrier has a Web site. But only seven percent of respondents said they access their auto, health or life insurance carrier on a monthly or daily basis. Respondents said they are more likely to visit auto (23%) and health (20%) insurance carrier Web sites over life insurance (13%) sites.

IVANS sponsored the telephone survey, which was conducted January 6-9, 2000, by Princeton, N.J.-based Opinion Research Corporation International among 1,017 adults, comprising 513 men and 504 women 18 years of age and older, living in private households in the continental United States. Findings were released at IVANS Chief Executive Forum, &uot;High Stakes Technology: Insurance and the Internet Economy,&uot; which drew more than 200 senior insurance professionals at The Plaza Hotel in New York.

IVANS Inc. is an e-business solutions provider for the insurance and healthcare industries that is based in Greenwich, Conn. Established in 1983, IVANS provides electronic communication services to more than 500 insurance and healthcare companies and related organizations in the United States and Canada. An industry-owned organization, IVANS works to supply the most cost-effective, efficient technology solutions to all parties in the insurance distribution system. More information on IVANS may be found on the Internet at www.ivans.com.