In general, the health-insurance industry is having a miserable time. Following the failure of the Clinton Administration plan to overhaul the U.S. health-care system, bipartisan groups have been lobbying for less comprehensive reforms. At the same time, health insurers have been devoting the bulk of their technology spending on fixing Y2K problems rather than developing Web strategies. That's given them some time to think about some sticky issues. The Web is a boundary-free marketplace.
Insurance is a state-regulated business.
And the Net offers comparison shopping, which could hurt pricing. If someone can figure out a way to Webify the health-insurance business, the potential payoff is huge. All are trying to win over consumers by linking up with established carriers in multiple states. Meanwhile, as these startups come calling on the old-line insurers, the giants are realizing they can't continue to ignore the Internet. It's an evolution, and we're in the middle of it.