Insurance companies face obstacles online

Integrating technology is the greatest obstacle to e-commerce deployment in the insurance industry, according to a survey of 25 of the UK's top 100 insurers.

Despite this, Meridien Research found that information security was not seen as an impediment to internet trading within insurance. Instead there are concerns about alienating existing channels, such as insurance agents.

Malcolm Booth, internet manager at Eagle Star Insurance, said security issues are an important factor in defining how services are delivered.

"People do internet business during the day, in their offices," said Booth. "This creates technical issues because data is going through firewalls, which can create problems in the delivery of services."

Eagle Star's website is written in Java and JavaScript because it is "very difficult" to implement e-commerce in pure HTML. Many corporate firewalls block Java. That means some users cannot complete e-commerce transactions at work.

Booth has set up a sales and service website for Eagle Star Direct, as well creating a 24-hour teleclaims operation.

The insurance industry survey commissioned by legacy-to-web integration vendor Intelligent Environments, revealed that British insurers are ahead of their US counterparts in e-commerce.

Richard Willcocks, chief executive of Intelligent Environments, said a basic policy transaction costs $19 (£12) through an agency but as little as $1.20 online.

Meridien predicts that by 2003 five per cent of motor insurance will be sold online.

See also:

Entertainment is the key for TV ecommerce

Insurance giant Eagle Star is to join Telewest Communication's interactive television service, which launches in March this year.  13 Jan 2000

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