Sapiens Joins ISO’s Preferred Partner Program to Integrate ISO Rating Service with Policy Insight Policy Administration Solution

RESEARCH TRIANGLE PARK, N.C. – NOVEMBER 16, 2004 – Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), a leading global provider of business-rules based insurance solutions announced today that it has signed a strategic agreement with ISO to offer the ISO Rating Service, a new rating system and rate-management offering for the property and casualty industry, integrated to its Policy INSIGHT policy administration solution.

“This “Preferred Partner” relationship will enable Sapiens to provide their customers the ability to leverage ISO Rating Service by combining it into their Policy INSIGHT solution,” said Scott Stephenson, ISO executive vice president. “Now our joint customers can support ISO lines of business and also customize and administer independent, company-specific programs to support non-ISO lines of business”.

“Our strategic alliance with ISO and integration of their ISO Rating Service with our Policy INSIGHT solution adds to the speed and flexibility our offering delivers to carriers, ” said Richard Wiedenbeck, Vice President of Solutions for Sapiens. “We are already known for being able to implement new lines of business on Policy INSIGHT in record time. Leveraging Policy INSIGHT integrated with the ISO Rating Service will give carriers the ability to seize market opportunities as they arise by adapting even more rapidly to change.”

The ISO Rating Service is an operational rating platform with built-in access to ISO-validated rating information and automatic electronic rating updates. It is loaded with ISO circular content – loss costs, forms assignment and rules based on state regulations. The service includes ongoing updates for each ISO line of insurance, supported by ISO’s industry experts, actuarial staff and line operation specialists.

Sapiens Policy INSIGHT(tm) is a Web-based, full function Personal and Commercial policy administration solution that allows carriers, brokers and agents to collaborate to write more business more quickly and to serve customer needs more completely. This solution allows insurers to react in today’s high velocity environment by providing configuration capabilities that help carriers “go live” quickly (time to solution) with both ISO-based and proprietary lines of insurance and then rapidly adapt/expand these offerings based on market opportunities (time to market).

Judy Johnson, Director of Insurance Strategy for Sapiens said, “Policy INSIGHT is in production with multiple rating engines (internal and third party); integration of the ISO Rating Service adds additional flexibility for carriers to leverage from our integrated, enterprise scale platform. Integration of the ISO Rating Service will allow carriers, and their vendor partners, to streamline the maintenance of rating information even if they have incorporated company-specific deviations.”

About Sapiens International

Sapiens International Corporation (NASDAQ and TASE: SPNS), a member of Formula Group (NASDAQ: FORTY and TASE: FORT), is a leading global provider of proven IT solutions that modernize business processes and enable insurance organizations to adapt quickly to change. Sapiens’ innovative solutions are widely recognized for their ability to cost-effectively align IT with the business demands for speed, flexibility and efficiency. Sapiens operates through its subsidiaries in North America, EMEA and Asia Pacific and has partnerships with market leaders such as IBM and EDS. Sapiens’ clients include AXA, Liverpool Victoria, Norwich Union, OneBeacon, Principal Financial, Prudential, Abbey National, ING, Occidental Fire & Casualty among others. For more information, please visit