Esurance Extends Auto Insurance to 24 States With Addition of New York, Georgia and Oklahoma

Business Wire, August 14, 2000

Personal Finance & Technology Editors

SAN FRANCISCO--(BUSINESS WIRE)--August 14, 2000

Esurance's Low-Cost, Top-Rated Auto Insurance Policies Now Available

to 70 Percent of U.S. Drivers

Esurance Inc., a quote-to-claims Internet-based provider of personal insurance, today announced the expansion of its auto insurance business to 24 states with the addition of New York, Georgia and Oklahoma.

Esurance now offers auto insurance policies through its online service (www.esurance.com) to more than 70 percent of the nation's driving population and plans to be in 35 states, representing nearly 90 percent of U.S. drivers by year's end.

"Car owners in New York, Georgia and Oklahoma now have the opportunity to save both time and money by buying auto insurance directly over the Internet," said Jean-Bernard Duler, chairman and CEO of Esurance. "Esurance's unique Internet-based model allows us to reduce costs and provide a less expensive policy with support and services that are more accessible and responsive to customer needs."

New York drivers, representing roughly seven percent of the nation's driving population, pay particularly high premiums for auto insurance, nearly 40 percent above the national average, according to a 1998 report from the National Association of Insurance Commissioners. On average, New Yorkers paid $1,113 for auto insurance in 1998, compared with a national average of $798. New York was the third most expensive state for auto insurance, behind New Jersey, which averaged $1293, and Washington D.C., which averaged $1180 according to the report.

Esurance is able to provide top-rated insurance policies at prices that are often significantly lower than traditional providers due to its innovative Internet-based insurance business model that reduces operating costs and eliminates agent commissions.

Esurance is a complete quote-to-claims online insurance provider that combines the service of an agent-based insurance company with the competitive rates of a direct insurance provider. Esurance enables customers to get expert advice, instant quotes, comparison quotes from other insurance companies and immediate coverage. Esurance customers can instantly add a driver or car to a policy, change their level of coverage and print out their policy or proof of insurance card, at any time using the online service.

Esurance currently offers personal auto insurance in 24 states, including Arizona, California, Colorado, Connecticut, Florida, Georgia, Iowa, Illinois, Indiana, Louisiana, Maryland, Michigan, Missouri, New York, Ohio, Oklahoma, Oregon, Minnesota, Pennsylvania, South Carolina, Tennessee, Virginia, Washington and Wisconsin. Esurance is licensed to market policies in 48 states and plans to continue expanding its business to additional states this year.

Market Opportunity

According to research from leading analyst firms, auto insurance will account for a majority of online insurance sales during the next several years. In a recent report, Forrester Research projects auto insurance sales over the Internet will reach an estimated $11.8 billion by 2004, and account for 90 percent of the total online Property/Casualty insurance sales.

About Esurance Inc.

Esurance Inc. is redefining the insurance experience by creating an easy and time efficient way to buy and manage personal insurance online. The company's unique Internet-based business model reduces the overhead of traditional insurance companies, while still performing the key functions of an insurance provider, including pricing, underwriting and claims handling. This direct Internet model eliminates agent commissions and paper-based processes, creating cost savings, which are passed on to customers in the form of lower rates for top-rated insurance policies. Through its online service (www.esurance.com), Esurance offers consumers expert advice, quote comparisons and instant coverage, as well as convenient, 24x7 policy management and superior claims handling. The company was the first Internet-based provider to offer real-time quote capability and fulfillment service to more than half of the nation's driving population. Founded in 1998, Esurance is backed by leading venture capitalists including Redpoint Ventures, Global Retail Partners, Trinity Ventures and 21st Century Internet Venture Partners.