This benchmark survey indicates that a positive relationship exists between those who have purchased products and services over the Internet in the past, and the likelihood that consumers would shop for and purchase insurance online. Almost half (45%) of the Internet households surveyed responded that they have purchased goods and services online, with nearly ten percent having visited Web sites specifically to compare insurance prices or buy insurance. The survey also discloses that Internet purchasers are three times more likely to have visited one or more Web site for the purpose of comparing insurance rates or purchasing policies (15% v. 5%).

These and other findings were announced yesterday by David Blair, Vice President for Insurance Industry and Regulatory Affairs for QuickenInsurance, at the Finance & Insurance Strategy Group Conference (FINSTRA) in New York City.

"These results are very encouraging," said David Blair. "Consumers are becoming increasingly aware that the Internet can be a valuable educational resource and tool for saving both time and money." He adds, "Over the past four years we've witnessed a dramatic increase in the percentage of QuickenInsurance consumers who are now using the Internet to not just shop for and learn about, but actually buy insurance policies." *

Furthermore, the findings reveal that age is a major indicator of consumer willingness to use the Internet as a comparison and purchasing tool. Respondents ages 18-34 are the most likely to shop for and purchase insurance products online (36%), followed by respondents ages 35+ (15%).

"While these results indicate that purchasing insurance via the Internet has yet to become as mainstream as purchasing books from Amazon.com, it is important to keep in mind that the online insurance industry is still young," said Jeremiah Buckley, General Counsel for the EFSC. "Forrester Research predicts that online sales of auto, home and life insurance will hit $4.1 billion by 2003." He adds, "The online insurance marketplace is positioned to become a formidable player in the e-commerce arena."

Besides age, the study concludes that gender represents a significant role in consumer willingness to go online for insurance. Men were more likely to shop for insurance online (17%) than women (9%). While security issues remain top of mind for current and prospective Internet shoppers, 46% of respondents stated that they are comfortable submitting personal information online. Of those surveyed, three main concerns were cited: security (28%), cost (11%) and selection (3%).

The Online Insurance Usage telephone survey was conducted by Bruskin Audits & Surveys, which polled a random sample of 467 Americans, ages 18+, from February 25-27,2000. The overall margin of error is a maximum of +/- 5 percentage at the 95 percent confidence level.

* Forrester Research - Insurance's Researched Future, Market Overview