Insurers Have Yet to Convince Consumers of Security of Internet for Policyholder Transactions

IVANS Survey Indicates Majority, Especially Younger, Experienced Internet Users are Concerned and Skeptical

Old Greenwich, CT

Nov. 5, 2002 � Despite the higher levels of service and convenience offered by the Internet, security is a concern for the majority of consumers when it comes to sending medical and personal property insurance information, according to a recent survey sponsored by IVANS, Inc.

Seventy-seven percent of consumers surveyed say they are concerned with their doctors� sending medical information to an insurance company over the Internet. Additionally, 66% of survey respondents are concerned about the privacy and security of property claims information being exchanged via the Internet. More than 2,000 adults participated in the telephone survey conducted by Opinion Research in October.

�There is a real opportunity for health and property-casualty insurers to educate consumers about the security measures they have taken to protect personal insurance data being sent over the Internet,� says Clare DeNicola, Senior Vice President of Network Services. �The survey results show that many consumers are not yet aware of the advanced networking technologies available today that can protect their data on the Internet.�

Surprisingly, the survey respondents most concerned about the security and integrity of their personal data on the Internet are under 45 years of age. Almost 70 percent of respondents are regular Internet users, with the majority performing online activities from their homes.

“Insurance companies have a wide range of options today for securing data on the Internet, such as SSL, Firewalls, Virtual Private Networks, and Public Key Infrastructure (PKI),� DeNicola explains. �The level of security provided varies among these solutions. For instance, a firewall does not secure data on the Internet but prevents data from getting into a network, while PKI is one of the most secure options, but comes with higher levels of cost and management.�

As insurance carriers roll out applications on the Internet, the level of security placed around the application and end-user access will vary based on the level of transaction taking place. For instance, many health insurers provide information on their public Web sites regarding doctors and hospitals they work with, but when it comes to transferring a patient�s claim data with those providers they continue to use secure, private networks to meet security standards established by the Centers for Medicare and pending HIPAA regulations.

IVANS Networking, a business unit of IVANS, works in partnership with AT&T Business (NYSE:T) to provide enterprise-wide data network solutions to insurance organizations throughout the United States. More information on IVANS Networking Solutions can be found at www.ivansnetworking.com.

Editors Note: These survey results are based on findings from a telephone survey conducted by Opinion Research Corporation International, based in Princeton, NJ among a national probability sample of 2,059 adults comprising of 1,024 men and 1,035 women 18 years of age and older, living in private households in the continental United States. Interviews were conducted during the period of Oct 17-21, 2002.

IVANS, Inc., headquartered in Old Greenwich, Connecticut was formed in 1983 by 21 insurance companies to provide data networking and e-commerce solutions and services to all participants in the insurance industry. It serves over 475 insurance and healthcare organizations, more than 30,000 independent agents, and 12,000 providers.