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American Express Property Casualty Slashes Wisconsin Auto Insurance Rates

25 February 2000

The American Express Property Casualty Companies Slashes Wisconsin Auto Insurance Rates
  Low Loss Claims, Growing Trends of Buying Direct and Online Quoting Drive
                                  Rates Down

    GREEN BAY, Wis., Feb. 25 -- A statewide provider of auto
insurance announced a significant rate reduction today for Wisconsin drivers,
citing low customer loss claims and the increased acceptance of buying
insurance products direct and online as major factors that are driving rates
down.
    The Green Bay-based American Express Property Casualty companies announced
today that it has reduced auto insurance rates seven percent for qualified
Wisconsin drivers.  Effective immediately, the rate reduction provides
significant cost savings, with some drivers saving up to $200 a year on their
current coverage.
    "Our seven percent reduction is a combined result of internal and
insurance industry factors, the most significant being low customer loss
claims, our direct sales approach, and the rapidly growing practice of quoting
and selling auto insurance online," said Ken Ciak, president of the American
Express Property Casualty companies.
    The American Express Property Casualty companies entered the auto and home
insurance market in 1986 when it began offering insurance products to its
credit card holders as a membership benefit.  In 1990, the company opened up
its insurance offerings to non-card members.
    The American Express Property Casualty companies is one of only a handful
of Wisconsin insurers that sell their insurance products direct, "minus the
middleman," or agent.  "There's no doubt that selling direct results in cost
savings for the consumer," Ciak said.  "For example, when you compare our auto
insurance rates to an insurer that sells through agents, drivers can see up to
a 20 percent decrease in their rates."
    People interested in obtaining an auto, home, or multi-policy estimate can
call the American Express Property Casualty companies at 800-842-3344.
    In addition to direct, or telesales, Ciak's company is gearing up to quote
and sell both auto and home insurance via the internet.  The company is
investing substantial funds in order to offer consumers nationwide the ability
to access policy and rate information online.  Ciak predicts that the company
will roll-out its interactive capabilities nationwide by April of 2001.  The
initial phase will begin in March of this year.
    According to Ciak, external factors like safer cars, seat belt
enforcement, graduated drivers' licenses, crackdowns on drunk driving and the
fact that baby boomers are moving into their "safe driving years" are also
contributing to auto insurance decreases.
    The American Express Property Casualty companies provides auto and
homeowners insurance for qualified customers in 34 different states.  The
company employs approximately 475 employees at its Green Bay insurance
division headquarters.