E-commerce is finally delivering tangible benefits to brokers, according to the UK's largest general insurance network CETA.
This announcement came as the result of an analysis of business generated by its membership base of more than 3,000 brokers located throughout the UK.
CETA's managing director David Quick said: "During the past year we have seen a sharp increase in the volume of business that is being introduced to us electronically. Two years ago e-commerce accounted for a small fraction of new proposals, whereas today it represents more than 50% of all new business.
"But most importantly e-business is proving that it can deliver real bottom line benefits for brokers. Not only are brokers using e-commerce to give clients a wider choice of competitive products and speed up processing, but it is also increasing new business levels and extending brokers' geographical reach beyond their normal boundaries of operation.
"Members who are using CETA PReMIUM, our internet quotation and trading system, are reporting that up to 3% of all clients who visit their site are applying for policies there and then, and if brokers follow up these contacts by phone the conversion ratio is increased to nearer 15%. This compares to a typical industry standard conversion ratio from direct mail activity of about 1%."
It is projected that 30% of all general insurance business will be transacted over the internet within the next five years.
CETA PReMIUM has written more than £1.5m of cover during its first 18 months of operation. This free service enables intermediaries to establish branded websites where clients can obtain quotes, read the details of all products, fill in a proposal and pay online.
"The time is now right for brokers to take their websites beyond being simply online brochureware to being transactional tools that can generate increased business volumes and enhance bottom line profits," Quick added.
