Wednesday February 28
InsWeb and Allstate Sign Agreement to Help Insurer Broaden Its Internet Reach
SACRAMENTO, Calif. -- InsWeb and Allstate Insurance Company have announced a two-year services agreement under which Allstate will market its auto, homeowners, renters and condominium insurance products at InsWeb's online marketplace. Allstate expects to generate customer leads from the millions of online consumers who visit InsWeb annually.
According to the agreement, Allstate availability on InsWeb's site will be rolled out in phases beginning in Illinois in March. By June, it is expected that Allstate auto insurance products will be available through InsWeb to residents in approximately 15 states, with renters policies marketed in select states. InsWeb said it expects further geographic availability of both offerings, and Allstate plans to introduce homeowners and condominium insurance in early 2002.
Customers who access Allstate through the InsWeb site will also have access to the sales and service capabilities of the Good Handssm Network, which includes approximately 13,000 local Allstate agents, and Customer Insurance Professionals available through 800-Allstate and allstate.com. Allstate quotes that result from InsWeb's site will be sent by Allstate via automated e-mail to consumers. Allstate plans to migrate to providing instant, online quotes and sales on the InsWeb site sometime in 2002.
"Participation by Allstate will further strengthen the value proposition for consumers who compare their insurance options at our online marketplace," said Hussein Enan, Chief Executive Officer of InsWeb. "Moreover, we believe this agreement complements the Allstate long-term commitment to be widely and readily accessible to consumers at key destinations across the Internet and in the physical world."
"We're pleased to enter into this agreement with InsWeb," says Steve Groot, President of Direct Distribution and e-Commerce. "This agreement represents a potential net gain to Allstate because, for these consumers, the direct channel is their channel of choice. It also supports the Allstate strategy of having multiple points of access available to consumers, making it easy for them to do business with us."
Additionally, InsWeb said it agreed to issue warrants to Allstate, entitling the personal lines insurer to purchase up to 350,000 shares of InsWeb common stock priced up to $5 per share over the next five years.
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