Reliance Group Expands E-Commerce; Plans To Top $100 Million In 1999
Last year, <%=company%>, a principal unit of Reliance Group, became the first insurer to quote and bind workers' compensation insurance over the Internet. In the first nine months of 1998, CyberComp had $60.3 million in gross premiums written, compared with $31.5 million in all of 1997.
CyberComp is licensed and online in 43 states. More than 500 independent insurance agents have access to CyberComp via a password-protected Website. CyberComp enables agents to get price quotes and obtain workers' compensation coverage for small accounts quickly and easily over the Internet.
Agents log onto the CyberComp Website, complete the online application for their clients and receive an underwriting response in five minutes or less. Once a quote is approved, the policy can be bound and issued. Quoting and binding had been a process that could take anywhere from five to 10 days with traditional means, such as telephone, fax and mail. With CyberComp, Reliance says total transaction time has been reduced to under 10 minutes. Reliance National Insurance Co.ce says CyberComp has given it a significant competitive advantage in workers' compensation for smaller companies—an estimated $15 billion market in the United States. Reliance Group Chairman and CEO Saul P. Steinberg said, "The World Wide Web is enabling Reliance to expand its distribution channels, penetrate new markets and expedite the delivery of products and services. The Internet offers significant growth potential for both new and existing lines of business. In addition, we are using the Internet to increase efficiency, reduce costs and improve service to our agents, brokers and customers. We believe Reliance is the leader in the property and casualty insurance industry on the World Wide Web."
E-commerce is also playing a role in the growth of RelianceDirect, which sells personal automobile insurance to consumers through an Internet Website and a variety of other direct marketing channels. RelianceDirect also offers auto insurance through InsWeb, an Internet-based insurance marketplace. Consumers visiting RelianceDirect's Website are able to get a price quote and apply for auto insurance online.
For RelianceDirect, the Internet is the most efficient and economical means of doing business. Reflecting these cost efficiencies, Reliance Direct offers consumers in most states $50 off their auto insurance premiums when they apply for coverage via the company's Website, according to the company. Reliance Direct receives approximately 30% of its auto insurance quote requests over the Internet. Reliance National Insurance Co.ce Surety is developing a web-based system that will further streamline the distribution of commercial bonds
for small accounts with bond requirements of less than $100,000. Express Surety, a division of Reliance Surety, specializes in providing license and permit bonds, probate and public official bonds and fidelity bonds for smaller sized accounts. Currently, Express Surety accepts agents' fax submissions directly into its computer system.
Paperwork is minimal, and Express Surety's bond underwriters ensure quick turnaround of two hours or less. Reliance National Insurance Co.ce says Express Surety's new system will enable bond forms to be completed online and submitted electronically. Transaction time will be reduced to a matter of minutes, and agents will be able to interface more easily with bond underwriters. Reliance National Insurance Co.ce is planning to combine customized professional liability insurance coverage with Internet capabilities to benefit the 180,000 members of a national trade association. A testing phase is already underway, the company says, and association members will be able to submit underwriting information electronically and renew coverage on-line in 1999.