THE ROLE AND IMPACT OF E-COMMERCE IN THE INSURANCE INDUSTRY

Abstract

Nowadays the conditions of business are quickly changing. From a commercial point of view the Internet and information technology have a significant effect on different industries .The growing importance of e-commerce increases demand of using it in the industries and in most insurance industries as well. Electronic Insurance is a result of development in information technology and communication. In the other words, insurance operations can be done by the Internet easily. The widespread use of the Internet and increasing demand for Internet access in order to get information and goods and services has changed lifestyle in society. Therefore, insurance companies cannot ignore these requests. Insurance companies can provide their customer with better services by using new information and communications technology. In addition, electronic insurance reduce real-time of business and management costs. In this research the role and impact of e-commerce on insurance companies has been addressed in terms of that to what extent using of e-commerce reduce company’s costs and boost company’s competitiveness and organizational performance. Moreover to achieve this goal in this research, a framework of reference is considered based on academic journals and textbooks. This research has carried out based on quantitative data and research type is an applied research and research strategy is survey. Questionnaire was used as a tool to collect data. For this purpose, a survey of 150 people has been carried out and convenience sample selection method was used to obtain and select respondents in any departments in insurance companies in Iran. The general conclusions made by this study identify that the Iranian insurance companies have a positive attitude towards e-commerce and they found that e-commerce would be an opportunity to boost the quality and efficiency of their business. Research finding confirm that the Iranian insurance companies would benefit from using of e-commerce in terms of cost reduction, brand and image promotion and extended corporation with partners and enhance organizational performance and competitiveness.