Myths Surround E-Commerce Capabilities.

The only areas developing faster than e-commerce may be the expectations and myths surrounding what e-commerce can accomplish, Paul C. Tinnirello, senior vice president for A.M. Best's information services division warned insurers.

Tinnirello offered a series of observations, including:

* Becoming e-commerce capable isn't a goal but a process, since e-models will change again and again.

* Not being first to develop e-commerce initiatives isn't necessarily a bad thing, because valuable lessons are being learned daily from others' mistakes.

* Insurers' Web sites are not obvious destinations for many online visitors. For now, most of the online glamour will be held by retail and entertainment industries.

* Developing and implementing e-commerce will continue to escalate in cost, but e-commerce initiatives are soon to be judged as part of the overall operation.

* Some insurers may be focusing on the wrong indicator--online sales. The major initial benefit of the Internet may be in expanded abilities to support functions already deployed.

* The role of chief information officers is migrating from technician and project leader to that of becoming a key member of companies' business strategy leadership teams.

* Finding technical help will remain a challenge. The U.S. business community is about 400,000 people short of meeting its need for technical workers.

* As e-commerce expands, support is more critical. The experience of online auction site Ebay.com is a warning. "If your business is really hung on the Internet, how much did you lose in that last five hours of downtime?" Tinnirello asked.