The vast majority of insurers are ignoring the threat of e-commerce a new report by IT services group CMG claims.

The CMG study found that 27% of insurance companies think e-commerce is an issue that demands urgent attention.

It also found that 55% of companies believe customer relationship management needs attention, while nine per cent believe it needs urgent attention.

Martin Stott, director of CMG's general insurance division, said: "The figures show that the insurance sector hasn't grasped the urgency of the internet and intranets as a means of communication."