Dispatches from the E-Commerce Frontier.Basic, low-cost products will succeed as insurers take their business online.
The insurance industry runs on data, creating the need to handle it more efficiently and cost effectively. That makes electronic commerce an ideal venue for its products and services--everything from selling policies to claims management.
There's no one right way to profit from the Internet Internet
Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the . Insurers need to create on-line products that are designed differently, stripped down to their basics and priced at a discount. They need to create an attractive work environment for the members of their technology team. And, because the leading competitors haven't have·n't
Contraction of have not.
haven't have not
haven't have found a winning model yet, the playing field is wide open, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. speakers who participated in A.M. Best Co.'s 12th annual Insurance and Information Technology Conference, "Continuing the E-volution," in Baltimore Baltimore, city (1990 pop. 736,014), N central Md., surrounded by but politically independent of Baltimore co., on the Patapsco River estuary, an arm of Chesapeake Bay; inc. 1745. Oct. 17 to 19.
Some insurers have begun reaping cost savings from their forays into e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. . Conference attendees heard how:
* Allstate Insurance Co. saved $100 million with a new computer system that simplified the way the company keeps track of its finances.
* United Healthcare reduced its business cycle time with selected brokers from 30 days to 3 days with a new extranet.
* Reliance Insurance Co. achieved a 59% reduction in its paid-loss overpayment o·ver·pay
v. o·ver·paid , o·ver·pay·ing, o·ver·pays
1. To pay (a party) too much.
2. To pay an amount in excess of (a sum due).
To pay too much. by using a new technological approach to its claims handling process.
Full conference coverage follows. To view the articles and photographs of the speakers online visit www.ambest.com.