What is the definition of Internet Insurer?

An Internet Insurer is an insurance company that sells its products exclusively through the Internet, meaning the main market for their products is through electronic commerce.

Internet Insurers claim to provide an advantage since the Internet is easily accessible and the proposed insured can browse and compare the products for the best deal. And since the proposed insured is able to transact directly with the internet insurer, he is able to do away with agents and thus, the commissions paid to agents. This means that the proposed insured faces savings in his purchase of the insurance.

However, it really depends on what the proposed insured wants and needs. If the person needs a more personalized level of service and would prefer guidance and advice in choosing his insurance policies, he may very well do better with an agent, since an agent can provide these for him.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage