Few businesses better embody the stereotype of Germany's cautiously conservative post-war economy than the insurance sector. Customers are typically so dedicated that one favorite German movie parodies a man dutifully signing up to a bundle of insurance policies, only to spend the rest of the film chasing down his agent when he realizes the massive financial burden he has taken on. That is changing, at least in part, because of the Internet.

From the 250 billion marks ( billion) market volume - that is the total volume in Germany for insurance - there is roughly about 100 billion worth that you can conduct on the Internet. In four years the Internet will actually handle about 20 billion marks worth of Germany's insurance business, with the greatest potential in the liability, household and automobile sectors. The online insurance brokers that have started appearing over the past year and a half offer clients a chance to compare a variety of options and insurers - something that was difficult and time consuming before.

A number of online banks and brokerages are among those also getting in on the act and beefing up online insurance offerings. The new insurance sites allow clients to quickly compare. How much will I save if I agree to pay the first 800 marks of a claim myself? The answer is only a click away. If clients like what they see, a new policy can arrive as soon as the next day. Payment is made later by bank transfer. The big advantage that it is faster than the normal broker and works more efficiently.

The new Internet brokers say because they compare offerings from many insurers and the overhead costs are far lower, Internet surfers can save a lot. Despite such advantages, only a tiny minority of Germans has jumped on the Internet insurance bandwagon so far. People are using the Internet mostly to get information about products, but they buy much less often.

The reason it is hard to break in is that 65,000 traditional insurance agents and 480 different companies are already vying for the 5,000 marks a year a typical German shells out a year on insurance. The new companies say they are targeting mainly younger, often first-time, insurance buyers. A customer, who is 40, would have made up his mind how to manage his insurance needs. Thus, it is more complicated to get him as a customer because he has a relationship with his agent. Customers may have trouble breaking away from their old-style agents even if they want to embrace the online world.