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Quotesmith.com as Information Arms Merchant: Unveils Strategy to Provide Internet Insurance Solutions for Financial Services Companies

Quotesmith.com, Inc. (ticker: QUOT, exchange: NASDAQ) News Release - 2/29/2000


Quotesmith.com as Information Arms Merchant: Unveils Strategy to Provide Internet Insurance Solutions for Financial Services Companies

Leading Insurance Information Company Launches Initiatives to Leverage Its
Internet-Based Insurance Information Technology and Customer Service
Facilities

DARIEN, Ill., Feb. 29 /PRNewswire/ -- Quotesmith.com, Inc. (Nasdaq: QUOT), the only place on earth where you can get instant insurance quotes from more than 300 leading companies, today announced a strategic initiative that will enable it to begin marketing the Quotesmith.com insurance technology as an end-to-end Internet-based insurance solution for financial services companies seeking to enter the $1.1 trillion U.S. domestic insurance industry.

In a press release Tuesday, the company said that it plans to pursue strategic partnerships with banks, brokerages and mutual fund companies by making its proprietary insurance quotation engines and automated back office fulfillment systems available on a private or co-branded basis.

"The role of Internet insurance arms merchant is a logical one for us," remarked Quotesmith.com Chairman and CEO, Robert Bland. "The almost geometric explosion of Internet technology and popularity, combined with the repeal of the Glass-Steagall Act, creates a financial services environment which frees up banks, brokerages and other money managers to pursue the distribution of insurance as never before. This situation presents a long-term business opportunity for us to license our technology and become a valued, collaborative partner as an insurance information infrastructure provider."

The company expressed its optimism over the future of online insurance sales and reiterated its business plan to expand distribution channels and broaden its customer base beyond its traditional direct marketing activities.

Grant Kuphall, Quotesmith.com vice president of business development, remarked, "The licensing and partnering of our technology with financial services companies further accelerates and expands our reach. By integrating the Quotesmith.com technology, a bank, securities firm or mutual fund company can quickly and cost efficiently enter the Internet insurance market and provide a total, customer-pleasing, quote-to-policy-delivery solution basis. Because we own and operate the largest and most comprehensive instant insurance quotation system, we are uniquely equipped to deliver the highest possible level of insurance content selection."

Further commenting on this new initiative, Mr. Kuphall continued, "Integration of the Quotesmith.com technology will enable a financial institution to immediately begin offering insurance quotes and full policy placement services to customers in all 50 states for 11 different lines of insurance offered by over 300 leading insurance carriers. This creates a win-win-win situation for the insurance buyer, the financial institution and us. Typically, it would take years and millions of dollars for a company to profitably develop the right technology infrastructure, hire and train customer service representatives and create a product mix with the depth and size of the 300-plus carrier database that Quotesmith.com has developed over the last 16 years. Included in our new technology transfer product is the Quotesmith.com full-service and paperless back office."

Quotesmith.com will be providing financial services companies with complete end-to-end insurance distribution solutions including technology infrastructure, policy placement services and customer service capabilities, all tailored to the needs of each financial institution.

Quotesmith.com has recently received a number of plaudits. On November 29, 1999, Gomez Advisors named Quotesmith.com its No. 1 Bargain Hunter Internet Insurance Site. In referring to the enormous number of participating insurance companies at Quotesmith.com and the time-saving convenience of having all of this information in one place, the November 22, 1999 edition of BusinessWeek called Quotesmith.com a "top site" while the November 15, 1999 edition of U.S. News and World Report stated that Quotesmith.com "... excels at comparing prices and terms from many firms."

About Quotesmith.com

Quotesmith.com owns and operates the largest and most comprehensive insurance price comparison service in America. The company provides instant, guaranteed accurate, company-authorized quotes for more than 300 leading insurance companies covering several lines of insurance including auto, motorcycle, life, individual and family comprehensive medical, short term medical, small group medical, dental, small business workers' compensation, Medicare supplement, watercraft, boat, RV and annuities.

Quotesmith.com empowers insurance buyers with near-perfect market information (including knowledge of potential savings) which is instant, easy to use, up-to-the-day accurate and not available from any other single source.

In addition to providing the widest selection of instant insurance quotes available from any single source, the Quotesmith.com site also allows visitors to purchase insurance from the company of their choice. Quotesmith.com provides complete, toll-free quote-to-policy-delivery customer service through the use of insurance-experienced, in-house, salaried representatives.

Quotesmith.com also provides useful reference tools and educational material to assist insurance shoppers. A typical Quotesmith.com quote comes complete with two full pages of policy coverage and reference information, including published underwriting guidelines. Another unique feature is that every Quotesmith.com term life quote also shows the latest independent ratings from A.M. Best, Duff & Phelps, Moody's, Standard & Poor's and Weiss Ratings, Inc.

Quotesmith.com is committed to providing the most comprehensive and useful insurance information experience on the Internet. The company electronically collects consumer demand for coverage and rapidly communicate such demand directly to insurance companies in an efficient manner.

The common stock of Quotesmith.com trades on the Nasdaq Exchange under the symbol "QUOT."

Forward Looking Statements

This announcement may contain forward-looking statements that involve risks, assumptions and uncertainties pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. This announcement may also contain forward-looking statements about events and circumstances that have not yet occurred and may not occur.

Expressions of future goals and similar expressions including, without limitation, "may," "will," "believes," "should," "could," "hope," "expects," "expected," "does not currently expect," "anticipates," "predicts," "potential" and "forecast," reflecting something other than historical fact, are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements.

Investors should be aware that actual results may differ materially from the results predicted and reported results should not be considered an indication of future performance. Reported Web site activity and/or quotes are not necessarily indicative of any present or future revenue.

The Company will not necessarily update the information in this press release if any forward-looking statement later turns out to be inaccurate. Potential risks and uncertainties include, among others, Quotesmith.com's limited e-commerce operating history, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, seasonality, consumer trends, competition, risks of system interruption, the evolving nature of its business model, the increasingly competitive online commerce environment, dependence on continuing growth of online commerce and risks associated with capacity constraints and the management of growth. More information about potential factors that could affect the company's financial results is included in the company's final prospectus dated August 3, 1999, as filed with the United States Securities and Exchange Commission.

This communication appears as a matter of information only and is not an insurance solicitation. Accordingly, no employee of Quotesmith.com, Inc. is recommending or endorsing any specific insurance company, coverage or policy type within this communication. Some insurance companies appear at Quotesmith.com for purely informational purposes only and pay no compensation to Quotesmith.com and some insurers pay commissions or fees to Quotesmith.com based upon premium volume or traffic activity produced by Quotesmith.com. Quotesmith.com is not an agent for all insurers shown at www.quotesmith.com . Quote availability by state of residence or any other factor is subject to change without notice.

Quotesmith.com is a service mark of Quotesmith.com, Inc. All other names are trademarks of their respective owners. Published by South Dakota agent #333509159, California agent #0827712 and #OA13858, UT #90093. California and Utah dba Quotesmith.com Insurance Services. All rights reserved. Quotesmith.com, Inc.

SOURCE Quotesmith.com, Inc.

 

CONTACT: Mark Johnson of The Financial Relations Board, 312-640-6793, or mjohnson@frb.bsmg.com, or Grant Kuphall, VP of Quotesmith.com, 630-515-0170, ext. 295, or grant@quotesmith.com/

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