Mid-Size Carriers Not Sold On Internet SellingDirect Internet sales are not likely to be an IT priority for mid-size insurers in the next several years, reveals a report by Boston-based Celent Communications Inc. In the report, titled "Technology Market Snapshot: Mid-Size Insurance Companies," mid-size insurers don't tend to rely on direct distribution, of which direct Internet sales is mostly a subset. However, similar to major companies, mid-size insurers are watching direct Internet sellers so they are prepared-in the event direct sales do rise to a higher level, Celent predicts. "For this reason, mid-size insurers who are focused on agent-oriented Web-based distribution enhancements are careful not to close the door, technologically, to the eventual possibility of direct Internet sales," the report states. Celent estimates that mid-size insurers will spend $1.1 billion on new technology projects over the next three to five years, primarily on Web-enabled policy administration systems and agent extranet systems.
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