Answer to Question 1
The insurance industry is part of the financial services sector. It has four major segments: automobile, life, health, and property and casualty. Insurance products can be very complex and have not become true online products. Some policies can only be explained by an experienced sales agent and there are many types of policies and products for example, different types of non-automotive property and casualty insurance. In addition to the complexity of the product, other distinguishing characteristics make it difficult for a complete transfer to this new online channel. For instance, thousands of local insurance offices and agents sell complex products uniquely suited to the circumstances of the insured person and/or property. In addition, the industry is regulated not at the federal level but separately in each state, with differing regulations. While many national insurance underwriting companies initially did not offer competitive products directly on the Web because it might injure the business operations of their traditional local agents, the websites of almost all the major firms now provide the ability to obtain an online quote. Even if consumers do not actually purchase insurance policies online, the Internet has proven to have a powerful influence by dramatically reducing search costs and changing the price discovery process.
Answer to Question 2
TRUE
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