BROADBAND

(Current as of July 2003)

THE ISSUE IS: The development of affordable, high-speed, always-on broadband access for rural business communities across America.

IT’S IMPORTANT BECAUSE: Affordable broadband - high-speed, always-on internet connectivity - has the potential to drastically improve the way business gets done in America. In general, broadband applications and services provide businesses with the technology to become more productive and to reach their customers in more convenient and efficient ways.

According to one survey, over 90% of small businesses with broadband service reported that the increased productivity (due to broadband) either met or exceeded the financial costs for the service. Some of the positive results from broadband that were cited in the survey included improvements in employee efficiency, customer communication, customer satisfaction, and research abilities.

Broadband could potentially impact businesses in every industry and in every community. For instance, hospitals in rural areas could use broadband to deliver health care in underserved areas, while banks could offer new online banking services to customers. Important to NAMIC members, broadband would also better enable insurance companies and independent insurance agents to use the Internet for claims reporting, claims inquiry, policy maintenance, policyholder communication, and other services.

Many small companies in rural parts of the country currently do not have the infrastructure necessary to support broadband access. Development of this infrastructure is critical to providing small business in rural areas with the means to compete, and it would also create jobs and provide economic strength to their communities. For example, the United States Chamber of Commerce estimates that investing in broadband could result in a potential economic benefit of $500 billion annually for the next 10 years.

NAMIC POSITION: It is economically important for small companies in rural communities to have the same access to broadband internet service as companies in more developed urban or metropolitan areas. NAMIC is supportive of the creation of a national broadband policy that serves to encourage and educate the public and Congress on the need for such a policy and investment in the infrastructure necessary to make it a reality. NAMIC is currently working with corporations, chambers of commerce, and other trade associations in an effort to educate the public and Congress on this vital need for broadband access throughout America. A national broadband strategy would help many of NAMIC’s rural company members, as well as their employees, policyholders, and communities.

Posted: Monday, March 17, 2003 12:00:00 AM. Modified: Wednesday, August 10, 2005 2:26:02 PM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.