A major survey into the use of full cycle EDI amongst brokers and intermediaries shows that paper-based transactions are rapidly going out of style.
Researchers found that brokers expect to transact 70.2% of all motor business using full cycle EDI within the next 12 months compared to just 47% today.
Brokers said that speed, followed closely by cost savings and the immediate issuing of documents, are the prime motivating forces behind its use.
The survey, a joint initiative between Zurich Personal Insurances and Countrywide, was carried out amongst 330 of Countrywide's broker and intermediary members.
The findings also revealed that currently one quarter of all motor business transactions are paper-based. This figure is in decline and it is believed will be at just under 12% by this time next year.
A similar percentage of Countrywide's members say they expect to conduct all of their motor business using full cycle EDI within the next 12 months.
Only 3.3% of respondents said paper remained their preferred method of administering business.
The survey defined full cycle EDI as the processing of all transactions throughout the life of the policy including renewal messages to and from the insurer and also including production of documentation by the agent. The survey was carried out in July of this year.
"There has been some recent comment that the intermediary market has not fully exploited the advantages of electronic trading," said Countrywide managing director Jim Davis.
"This isn't the case for our members and insurer partners where it has, without doubt, become the preferred method of trading."
