1. Update: eCommerce and Its Use by Insurers CAS Spring Meeting Las Vegas May 9, 2000

2. Internet sales are projected to grow over time Source: Forrester Research

3. Current activity suggests these estimates may be light Top five sites received an estimated five million visitors in April Hundreds of sites exist and draw traffic today, including –Marketplaces –Individual carrier sites –Agencies Source: topnine.com

4. But lower acquisition costs aren’t guaranteed Attracting consumers can be difficult amidst the noise –3.6 million web sites exist, with 8.1 million registered domains –Estimated 2 million new web pages created per day The internet will be used by most players within each channel –Changes the way sales, service is provided –Should improve expense efficiency and service quality –Think “telephone”

5. The internet affects all facets of the insurance marketplace Acquisition is the most visible –Costs should come down over time –Consumers will expect such access, regardless of cost impact Other areas will see as dramatic (if less visible) change –Policy service of all types –Basic company operations Service levels unheard of today will become the norm tomorrow

6. Winning companies will learn quickly to use the internet to advantage Improve efficiency from an expense perspective Leverage the knowledge gains available Adapt to greater market transparency –Price –Practices