The Telecommunications Economy: Insurance

Telecommunications is the central nervous system of the American economy. It has revolutionized virtually every aspect of our lives and every industry, from education and health care to banking and finance. Between 1995 and 2004, advances in telecommunications and information technology were responsible for as much as 75% of
U.S. labor productivity gains. To remain competitive in the world, the United States must have the most advanced telecommunications technologies and services.

This fact sheet is part of an educational campaign which describes how the use and availability of advanced telecommunications technologies and services impacts the U.S. economy and the nation's ability to compete in the global marketplace.

According to a March 2005 IVANS, Inc. survey, independent insurance agents increasingly rely on the Internet, and broadband in particular, to conduct business. For example:

• 100% of all survey respondents reported that they had a broadband Internet connection. This indicates that broadband Internet access is essential to conducting day-to-day business.
• 52% of survey respondents reported that providing quality customer service means having 24/7 access to information such as insurance management applications.

Mobile and wireless computing provide many benefits for the insurance industry and its clients. According to an article on wireless technology on the InformationWeek (http://www.insurancetech.com/) Web site:

• Reduced turnaround time between submission of applications and underwriting allows clients to receive coverage faster.
• Using a wireless link to the home office could speed up claims settlement by 50% to 80%, which ultimately allows insurance holders to receive award payments and rebuild that much faster.
• After Hurricane Katrina, Allstate Insurance Company, the second-largest property insurer in the affected area linked claims adjusters to its Chicago headquarters through satellite communications systems, cutting days off the time it takes to gather information. Since Allstate increased the speed of its claims-adjustment process, the company reports the highest customer retention rate in decades.

According to an article on the Insurance & Technology (http://www.informationweek.com/) Web site:

• MetLife Auto & Home uses GPS navigation systems, which are especially helpful in emergency situations where many people from all parts of the country are being deployed to one area. Customer data relayed to agents via electronic data feed can help efficiently deploy personnel to areas by allowing them to view the number of policyholders in a community by county and zip code.

iAnywhere Solutions (http://www.ianywhere.com/), a subsidiary of Sybase, Inc., and a provider of software and services to some of the top insurance carriers states that:

• Allowing clients to access policy information online reduces operating costs for insurance carriers and increases customer satisfaction and loyalty.

Securing America's position as a global leader in telecommunications is key to sustaining real economic growth, job creation, improving our standard of living, and maintaining our competitive position in the world. 

To download a PDF version of this fact sheet, please click here.