Insurers are in real danger of failing to exploit the full potential of e-commerce and the internet, according to a survey by European IT services group CMG.
The survey did not identify one insurer confident that its internet use was operating to full advantage.
Only 27% of insurers felt that e-commerce was sufficiently important to deserve immediate attention, the survey found. And the internet was not being properly used as a tool to attract customers.
A majority (55%) of insurers admitted that their customer relationship management (CRM) capabilities, which includes e-commerce, required greater development.
This contrasts with a core 36% of insurers who claimed their CRM capabilities were adequate.
Even accepting the growing importance of the internet, only nine per cent of insurers felt that using it to enhance their capacity for CRM was an urgent requirement.
More worrying, said CMG, was that 18% of insurers were unprepared for even the basic elements of CRM such as data consolidation. They said their existing claims handling systems were satisfactory.
Insurers do appear to be better prepared for a potential merger or acquisition, with 55% saying their systems were ready for such a possibility.
Slightly fewer firms were ready for the implications of Britain adopting the single currency, (36%), while 55% claim to be working on the issue.
Martin Stott, director of CMG's general insurance division, described the survey's findings as "alarming".
He said: "The figures show the insurance sector has not grasped the urgency of the internet as a means of communication."
Stott warns the industry could be left behind since only nine per cent of firms say they are content with their e-commerce capabilities.
