GMAC Selects Homesite as Its Exclusive Homeowners Insurance Partner
24 April 2000
GMAC Selects Homesite as Its Exclusive Homeowners Insurance Partner Insurer's Web-Oriented Technology Platform, Exclusive Focus on
Homeowners Market and Customer Service, Cited as Key Factors
BOSTON, April 24 Homesite Insurance announced today that
it has entered into a long-term partnership with GMAC Insurance, the insurance
arm of General Motors Acceptance Corporation. The partnership calls for
Homesite to be the exclusive underwriter of homeowners insurance for GMAC's
direct auto and home insurance customer base including, General Motors
employees and retirees in the U.S., the members of GMAC Insurance's affinity
and worksite relationships, and all other GMAC Insurance direct marketing
initiatives. Today these groups represent approximately 8 million
individuals. Plans include eventually offering the program through the GMAC
Insurance network of approximately 15,000 Independent Agents.
"We chose Homesite for three key reasons: their advanced, web-oriented
technology platform that allows for seamless connectivity to GMAC; their
exclusive focus on the homeowners market; and their strong emphasis on
innovation and customer service," said Gary Kusumi, President and Chief
Executive Officer - Personal Lines, of GMAC Insurance. "By teaming with
Homesite, we are able to expand our marketing of homeowners insurance, which
helps to enhance our auto insurance sales proposition and strengthen our
customer relationships."
Homesite Insurance will provide all underwriting functions, a distributed
claims system and will participate in developing marketing programs for
homeowners insurance to be sold under the GMAC Insurance brand. Homesite will
use its sophisticated, proprietary underwriting and catastrophe management
models to help manage its portfolio. Homesite has relationships with a number
of the world's leading reinsurers as part of its risk management program.
Charlie Kline, Homesite's Chief Executive Officer, said, "Partnering with
the GMAC organization is a pivotal development for Homesite. GMAC is a
leading brand because of its customer service orientation and commitment to
delivering high quality products. By partnering with Homesite, GMAC validates
our technology platform as well as our own dedication to the highest level of
customer service. We look forward to a long and successful relationship with
GMAC."
Homesite Insurance also announced today that it has launched Apply-'n-
Buy(TM) on its website, Homesite.com. Apply-'n-Buy is a proprietary insurance
technology that makes Homesite the first insurance company in the U.S. to
enable customers to purchase homeowners and renters insurance directly online,
during a single visit. The entire process, from completing a short
application to printing a proof of coverage, typically takes 5 minutes for
renters and 10 minutes for homeowners. For customers seeking to speak with a
licensed insurance advisor, Homesite also has a staff of expert
representatives available by phone.
Homesite is a specialized insurer of homes, designed specifically to
enable customers to access its products and services in any way they prefer,
including 100% through the Internet.
Homesite Group Inc. was formed in 1997 and launched in 1999, and is
dedicated to providing U.S. consumers with low-priced homeowners insurance
coverage and outstanding service. Homesite's insurance products are marketed
through affinity groups, employers and selected service partners, as well as
directly to consumers. The company is currently marketing in eight states,
and is on schedule to expand throughout much of the U.S. this year.
Homesite was launched with equity commitments of more than $200 million
from an investment group led by Morgan Stanley Dean Witter Private Equity, the
private equity business of Morgan Stanley Dean Witter (NYSE: MSDW). Since its
founding 15 years ago, funds managed by Private Equity have invested
$4 billion in more than 160 companies around the world. Morgan Stanley Dean
Witter Private Equity manages a group of funds that invest in technology
companies with a focus on e-commerce, data communications, Internet
infrastructure and information technology services.
