Multi-line carriers should attempt to build a niche for each of their lines on the Internet by partnering with other sites that cater to their target market segments and build close online relationships with their current and future customers. Mid-sized carriers that are not as highly capitalized as the major carriers have a number of opportunities. Most mid-sized carriers tend to be regional players. Despite that they are only licensed in a certain number of states, and cannot take full advantage of the borderless nature of the Internet, they can align with other carriers, in similar positions that also want to co-develop IT infrastructure for online insurance capabilities. Collaboration among regional banks in the 1980's greatly influenced the rapid development of a nationwide ATM structure, that banks of all sizes use today.
Similar trends are possible among mid sized carriers.
In the short term, basic Internet functionality, such as a Web site, email, email chat, online maps and other capabilities are available at very low to no cost today. Creative mid-sized carriers and agents with limited IT budgets should consider ways to leverage these tools to build basic interfaces to enable customers to email a request for quote, find an agent location, print out an application form, or look at recently posted rates on a range of products 24 hours a day 7 days a week. A few players, like Ebix and BenefitMall are building XML platforms that facilitate carriers without an existing web interface, to go online quickly and cost-effectively. This has the potential to level out the playing field to some degree, and give smaller carriers access to a wider range of customers. Return Top .