Insurance Claims? You Can Bank On It
Sun Herald
Sunday March 19, 2000
HOME insurance claims will be paid within days thanks to the Internet, according to Commonwealth Bank insurance executive director Lyndell Fraser.
The bank has moved its insurance operation on-line, joining FAI as the only insurers to provide instant home and contents quotes over the web.
It plans to settle claims online soon.
The instant quotes were pioneered by FAI Insurance two years ago but the rest of the industry has been slow to move on-line.
Some insurers post application forms on the Internet but reply by e-mail, sometimes days later, and can be slower than their quick telephone services. GIO does this for green slip quotes, as well as taking motor and home claims online.
Commonwealth Insurance will ultimately move the whole home insurance process over the web, Ms Fraser said.
``Ultimately, claims assessors and approved suppliers will all go on-line so, if your TV is stolen, the claims handling and replacement service can be done in a matter of days," she said.
``We have been trying to get people to think about insurance as one plank in their financial plan because if you are uninsured it is very difficult to recover from a fire.
``It is all very well to have money in managed funds and shares but it would be a big setback to have the house burn down with all your furniture and contents."
The five-minute quote for cover can be purchased immediately online with Commonwealth and FAI. The two sites allow immediate comparison of rates 24-hours a day.
The Quicken online financial Internet site offers up to three home insurance quotes within a day from an application online.
AAMI, GIO and NRMA work by phone quotes during limited hours to business and do not yet offer instant home quotes online. Although not the first or necessarily the best, the Commonwealth had its timing right with online share trading and held half the market, according to Deloitte Consulting client director Rod Millott.
``People have not wanted to go online because they have been comfortable with the old way of doing things," Mr Millott said.
``Companies can waste money if they go too early and lose market share if they leave it too late.
``Like the US, insur-ance companies have been slower than the banks in going online."
* For a Sydney inner-west, three-bedroom double-brick home insured for $180,000 and contents of $55,000, Commonwealth Insurance quoted $752, FAI quoted online $705, Quicken by e-mail quoted $1,183 (Royal Sun Alliance) and $680 (Western QBE if an alarm system was installed). By phone, GIO quoted $695 and NRMA $747.
© 2000 Sun Herald
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