Abstract
M.Comm.
This study investigates the use of electronic commerce within the long term
insurance industry in South Africa and the related legislative and compliance
issues, together with certain restrictions.
To understand the factors for the successful implementation of electronic
commerce applications in the long term insurance environment the current
internet usage and needs of the market is investigated. It is found that internet
usage is growing phenomenally. Electronic commerce is thus a viable
business-to-consumer option for insurers and can provide an insurer with a
significant competitive advantage.
The study shows that the current legislative environment allows for the
increased use of electronic commerce by accepting electronic data as
sufficient for evidentiary purposes in courts of law and allowing electronic
contracting. This enhances the attractiveness of electronic commerce for long
term insurers. Despite the competitive advantage that electronic commerce can provide an
insurer with, there are still restrictions to its widespread use. The study shows
that the main factor leading to the failure of long term insurance electronic commerce initiatives is consumer ignorance in respect of on-line privacy and
security.
Investigation reveals that a number of factors do exist that are critical for
successful implementation of an electronic commerce initiative in the long
term insurance industry. These factors can be summarised as the use of new
technology, new views on electronic commerce, empowerment of users and
the integration of distribution channels to allow customers a holistic insurance
experience.