The objects of purchase and sale in the insurance electronic market are specific products – electronic insurance services.
Electronic insurance is a system of measures aimed at full or partial compensation of losses from certain risks through the use of information computer technologies. It is a relationship for the protection of individuals or legal entities in the event of insured events at the expense of cash funds formed from the insurance premiums paid by them, the implementation and maintenance of which is implemented by means of computer technology.
Participants of the electronic insurance market are insurance companies that are represented on the Internet, consumers of insurance electronic services, other professional participants of the insurance market (financial institutions and the like). The absence of direct contact between the insurer’s representative and the policyholder implies a high degree of standardization and unification of the services offered. Such characteristics are fully met by property insurance policies of households, small and medium-sized enterprises, car insurance, accident insurance.
Internet representation of the insurance company can provide for customers:
- provision of complete information on the General and financial condition of the company;
- providing detailed information about the company’s services and the possibility of detailed acquaintance with them;
- provide calculations of the insurance premium and determine the conditions for its payment for each type of insurance and depending on the specific parameters;
- completing the insurance application form;
- ordering and payment of (one-time or periodic) insurance policy;
- provision of the policy by the Internet;
- provision of the possibility of information exchange between the parties in the event of an insured event during the term of the agreement;
- provision of other services by the insurer (e.g. advice).
Complex Internet-insurance includes:
1. calculation of the amount of insurance payments and determining the terms of its payment; filling out the application form for insurance;
2. implementation of periodic payments of insurance premiums;
3. maintenance of the insurance contract during its validity (generation of reports on user requests, in particular on the status and changes in contracts, receipts and payments);
4. exchange of information between the policyholder and the insurer in the event of an insured event.
The client, while on the Internet, selects an acceptable insurance policy and fills it in electronic form. The insurance company carries out the insurance process using information computer technology. In the process of insurance operations, an electronic document is formed – an insurance policy, which serves as a legal document for the insurer and the insurance company, where all the conditions of insurance are stipulated.
Insurance representation is often connected to the electronic trading platform, which brings together other participants of the insurance market (travel agencies, car dealers, etc.). Insurance premiums in this case are transferred to intermediaries, and the insurance policy is delivered by the courier of the insurer or intermediary. Electronic trading platform allows interaction with reinsurers and other representatives of the insurance market.
Promising are such types of electronic insurance as insurance of electronic risks, cybercrime, electronic equipment, financial risks, liability.
Insurance portals play an important role in the market of electronic services. There are also portals that unite groups of insurance companies (for example, on a geographical basis), or portals focused on certain types of insurance services operating in one insurance sector (health insurance, etc.).