NetInsurance.com Launches Online Insurance Purchasing; Scalable, Cost-Efficient Insurance Distribution Capabilities

    SAN FRANCISCO--May 7, 2001--NetInsurance.com (www.netinsurance.com), an online insurance agency, has launched the first service that enables national, end-to-end online insurance transaction fulfillment, beginning with twelve nationally recognized insurance carriers.
    "We enable banks, portals, insurance agencies, and others to sell personal lines insurance products," said Rob MacKethan, president and chief operating officer of NetInsurance.com.
    NetInsurance.com already has several marketing partners, including autobytel.com and abilizer.com, both of which launched online purchase of automobile insurance policies in February, offering unbiased, real-time quotes from Travelers, Progressive, Hartford, Safeco, Kemper, Atlanta Casualty, CSE, Infinity, Leader, Omni Insurance Group, Orion Auto, and Windsor. NetInsurance.com plans to add other lines of personal insurance in the near future.
    "Consumers want to buy online, and we provide an easy way to meet this need -- and a new source of revenue for marketing partners," said chief operating officer Rob MacKethan, a 15-year insurance veteran. "Insurance companies get lower policy acquisition and service costs, and can tap into the growing population of technology-oriented online shoppers."
    "Additionally, we offer a remarkably accelerated, and cost-effective mechanism for rapid new product introductions and geographic expansion, with fast, comprehensive feedback. Companies only pay commissions on policies sold -- not quoting opportunities, set-up, maintenance or connectivity," he added.
    NetInsurance.com provides both stand-alone online fulfillment and end-to-end online transaction automation (including comparison quotes, binding and payment). Service and support from initial inquiry to sale and post-sale is provided by licensed agents online or by phone. Information and analytical tools are offered throughout the site. In contrast to the quote-and-referral model used by many online insurance marketplaces, users can compare prices, select the policies that best meet their needs and purchase online in just 15 minutes.

    A different strategy

    Online fulfillment was a formidable challenge due to complicated state-by-state licensing and oversight, and a lack of standards for data exchange in the industry. NetInsurance successfully solved many complicated issues.
    "Instead of trying to customize technology to specific insurance companies' needs, we turned the challenge around," said MacKethan. "We identified more than 50 insurance companies, including many nationally known brands, that had substantially similar needs and ways of exchanging and processing data, and developed a common platform that many carriers could adapt to -- the faster and most efficient approach."
    Electronic connectivity with carriers was paramount; the achievement was automation of the entire transaction.
    "As agents, brokers, carriers and financial institutions race to respond to the rapidly growing demand for speed and efficiency in the online financial services arena, NetInsurance is poised to provide both companies and consumers with the simplest, most cost effective way of buying and selling insurance," said MacKethan. "It's a milestone for the insurance industry."
    NetInsurance is headquartered in San Francisco, California. Among its investors are Accenture/Andersen Consulting, Catalyst Master Fund, L.P., and Five Points Capital, L.P.