Internet Revolution Reaches Sleeping Giants of Financial Services – P&C Insurers

First in Two-Part Series of Gomez Insurance Studies Identifies Key Consumer
Adoption Trends for Property and Casualty Insurers

WALTHAM, MA, March 28, 2001 – The Internet delivery of property and casualty
(P&C) insurance products and services is approaching the mainstream, according to a
consumer research study released today by Gomez Inc., the Internet quality measurement
firm. The study reveals that more than 28 million consumers, or 30.3 percent of the U.S. adult
active online population (or General Web Users), have sought P&C insurance information online.

However, the study also reveals a significant gap between the tasks consumers intend to
perform online, those that they actually perform, and those that they express an interest
in performing online in the future. This represents a significant untapped opportunity for
insurance companies. The inaugural State of Online Insurance: Property and Casualty report
is an online survey of more than 10,000 Web users, which addresses critical success
factors for insurance companies, and provides key information, analyses, and insights on
the online insurance industry today.

“The last eighteen months have brought a marked acceleration in the delivery of
insurance-related products and services online,” explains Greg Davies, lead insurance
analyst at Gomez and co-author of the study. “A growing number of online users are
using the Web for insurance information and transactions, and insurance companies are
beginning to recognize the importance of the new business and customer relationship
opportunities that are resulting from this usage. However, today’s top online offerings
still have significant shortcomings in meeting customer expectations, particularly
compared with other financial services offerings now available online.”

The State of Online Insurance: Property and Casualty study
uncovered, among other findings, that:

  • Only seven of the top twenty issuers of
    private passenger vehicle insurance offered online policy access as of February 2001;

  • nly 4.2 percent of insured consumers that
    have visited vehicle insurance sites in the past have accessed their policy information
    online, and;

  • The majority (50.9 percent) of insured
    General Web Users are interested in managing their policies using the Internet in the future.

“This represents a clear opportunity for
insurers that are already looking at ways to streamline operational inefficiencies, build
and strengthen online customer relationships, and gain competitive advantage,”
continued Mr. Davies. “While 54.4 percent of online users intend to use the Internet
the next time they shop for personal vehicle insurance coverage, insurers will also need
to look beyond quotes and applications to meet the needs of their current and prospective
online customers.”

The State of Online Insurance: Property and Casualty study offers a
granular analysis of the attitudes and behaviors of today’s insured online users as they
relate to the Internet delivery of P&C insurance policies and services. The report
also examines the factors influencing online users’ buying decisions and provides a
detailed analysis of these consumers’ other online financial services activities.

The Internet is fundamentally changing the insurance industry by enabling consumers to
assume greater responsibility and control over their purchase decisions. The Gomez study
provides insurance professionals with the critical information, analyses, and insights
required to make tactical and strategic decisions for the future.

The State of Online Insurance: Property and Casualty study is the first
of two reports in an inaugural series of studies examining the online insurance industry.
The second module, The State of Online Insurance: Life study, will be available in June
2001. For more information about purchasing the study, please contact David Kolojay at 781-768-2454.

About Gomez

Gomez is the Internet quality measurement firm, providing e-commerce customer experience
measurement, benchmarking, and customer acquisition services to help firms build
successful e-businesses and guide consumers in transacting online. GomezPro provides
e-commerce customer experience measurement tools, analysis, and consumer research services
to help companies build successful e-businesses. The Gomez Performance Network enables
companies to optimize customer experience with real time Web site performance measurement
and diagnostic tools. Gomez.com provides Scorecard rankings and merchant certification of
over 6,000 firms in 75 industries, helping consumers transact online with confidence, and
through its Performance Media program, enabling merchants to reach desirable consumers at
a guaranteed acquisition cost. For more information, visit
www.gomez.com.

Gomez, Gomez.com, GomezPro, Gomez Performance Network, Performance Media
and Internet Quality Measurement are trademarks and/or service marks of Gomez, Inc.