Commercial insurance.com?

• Author: Jump, Shirley
• Position: Effects of the Internet to the insurance industry

Is business insurance going to ride the Internet wave?

Personal-line insurance agents may be getting nervous about the wave of Internet-based services, such as Quotesmith.com, that allow surfers to compare and even purchase their home and auto insurance on-line. Commercial agents, however, are not worried the Web will replace person-to-person dealings and expect the Internet to be more of an aid than a hindrance to their business because it offers speed and convenience for many mundane transactions.

"The actual purchasing of personal insurance is growing on the Web and will probably continue to grow," says Don Miller, operations manager for Forrest Sherer Inc. in Terre Haute. "However, there is a lot of handholding involved in purchasing commercial insurance and that is hard to do on-line."

Miller and other insurance company representatives said the commercial insurance application process is long and involved, making it nearly impossible to do via the Internet. E-mail correspondence and electronic file transfer can speed up the process for both parties, even if it won't replace the agent's role.

"Whether it's for a personal or a commercial line, the Internet is a great order-taking tool, when the consumer knows what he or she wants," says Brett Schultheis, vice president of commercial lines for Schultheis Insurance Agency, headquartered in Evansville. "The Internet can be just one piece in the purchase process."

He adds there are so many options available in setting up even the most basic commercial policy that it is necessary to speak with an agent. "That two-way interaction with a client that helps lead them through what they want and what they need is critical."

Even videoconferencing, which may speed the process along and add a convenience factor, won"t be able to replace hands-on assessments. "Nothing beats going out to an account and walking through their business, helping them determine their needs," says Schultheis.

One area that is seeing increased Internet use, particularly with commercial accounts, is claims processing and filing. Tobias Insurance Group in Indianapolis offers a claims section on its Web site, www.tobias.com. Clients can enter their claims information in real time on-line, from a computer at their site. They can also look up previous loss information, check a claim's status and even have the computer fill out an OSHA-log for them.

"We have clients who have 20 or 30 locations throughout the Midwest. Their safety...