It also has established numerous alliances with other Internet sites and persuaded a host of established insurance companies to quote prices on the site. Unfortunately, however, it has also failed to attract a large number of insurance applicants, suffered grave financial problems, and faced SEC challenges to some of its accounting practices. The biggest issue facing anyone who attempts to judge the penetration of new Internet business models is discovering what is real.
Internet companies are extremely skilled at presenting compelling accounts of their activities.
If their sites look good and appear easy to use, the press likes them. Good press may even translate into high stock prices. The company s financial statements, presuming they are honest, may provide a better indicator of what the market of insurance buyers not the stock market really thinks of the business model. If the business model is not yet generating much revenue, insurance buyers are not yet widely using it. They may do so in the future.