Online Insurance Purchases Show Sharp Increase

14 December 2000
Online Insurance Purchases Show Sharp Increase
    Wisconsin-Based Auto and Home Division of American Express Sees Spike
                    As It Begins Selling Insurance Online

    GREEN BAY, Wis., Dec. 14 Growing consumer confidence
toward e-commerce is revealing itself in record numbers of auto insurance
policies being purchased online.
    According to the American Express Property Casualty companies, the auto
and home insurance division of American Express, 78 percent of consumers who
are going online to receive insurance quotes also make their insurance
purchase online, without any type of human intervention-quite a remarkable
statistic considering the company first began selling their insurance products
online this past May.
    Now available in Wisconsin, consumers can receive real-time quotes and
purchase auto insurance in a few easy clicks when they log on
http://www.americanexpress.com/insuremyautohome
    "In the past, we were told that no one would make a purchase like
insurance without talking to a human being," says Dianne Wilson, Vice
President of the Internet Initiative for the American Express Property
Casualty companies. "What we've experienced is exactly the opposite. People
are very comfortable buying online if they know and trust the company, and are
doing so in record numbers."
    According to Wilson, building consumer convenience, control, and security
into the site up front have contributed to its early success. "Consumers want
the convenience of getting information they need anytime day or night, the
control of making a purchase decision when they're ready to make it, and the
security that comes when doing business with a company that won't be 'here
today, gone tomorrow,'" she says. "Consumers logging on our site find all
that, along with access to other financial services."
    Highly competitive insurance rates and American Express' 150-year history
of providing its customers with world-class service also play a role in the
company's online success. Unlike traditional insurance companies, the American
Express Property Casualty companies do not use an agent network to sell their
insurance products. Rather, the company sells direct, passing the savings on
to consumers. "For most consumers, that translates into service they'd expect,
savings they wouldn't," Wilson adds.
    Wisconsin consumers can realize even greater savings due to the overall
safe driving history of state residents. Earlier this year, the company
announced a seven percent rate reduction for qualified Wisconsin drivers,
siting safe driving records and buying direct as the impetus for the
reduction.
    The American Express Property Casualty companies currently offer online
quoting in 38 states. By June 2001, customers in all of these states will be
able to purchase auto insurance online.
    Even with the strong initial success, the company is looking for ways to
improve the web site. "By December of this year, our goal is to provide
consumers with an accurate quote in 10 minutes or less," Wilson says.
    The American Express Property Casualty companies provide auto, homeowners,
and personal liability umbrella insurance for qualified customers in
38 states. The company employs approximately 575 employees at its Green Bay
insurance division headquarters.

    * Property/casualty insurance is underwritten by Amex Assurance Company or
      IDS Property Casualty Insurance Company, Green Bay, Wis.