Willis Signs Major E-commerce Agreement with OneShield

Business Wire, Oct 3, 2000

Business/Technology Editors

NASHVILLE, Tenn.--(BUSINESS WIRE)--Oct. 3, 2000

Willis, the world's third largest insurance broker and risk management adviser generating in excess of $5 billion in premiums through its North American-based retail and wholesale operations, has partnered with OneShield, Inc. to embark on an e-commerce initiative with its commercial property and casualty insurance business.

The OneShield deal could, over time, move major segments of Willis' workflow processes to the Internet.

"The OneShield partnership allows us to bring enormous value to our clients," said Brian Johnson, president and CEO of Willis North America Inc. "Together, we will continue to streamline the way we process our business. Those efficiencies will give us more time and expertise to employ on our clients' behalf."

By placing its products and services online, Willis will realize time and distribution efficiencies that will further strengthen its customer-driven operations. While financial terms of the agreement were not disclosed, both parties acknowledged that compensation would be a percentage of the economic benefit to Willis.

Web-automation of insurance distribution processes will occur in three phases :

Phase One

OneShield(TM) Connect will enable Willis clients in two popular insurance programs to transact business in real time and in a fully-automated fashion, a major breakthrough in the workflow process and one with broad implications for the industry itself.

Phase Two

Phase II will expand to additional Willis property and casualty programs and branch out to include the Willis online direct-to-customer initiative, implemented through use of OneShield(TM) Direct services, which will give Willis the ability to sell its products directly to businesses through the Internet.

Phase Three

Finally, Willis will utilize OneShield to automate certain aspects of middle-market brokerage operations.

The implementation of Phases II and III is contingent on successful implementation of the prior phases, as well as mutual willingness to move ahead to the next phase.

"The fact that one of the world's largest brokers is partnering with OneShield is a testament to our vision to dramatically streamline the costly and time-consuming insurance industry distribution infrastructure," said OneShield COO, Vivek Gujral. " We help all insurance players - whether carriers, brokers or agents - realize greater time and cost savings while providing a higher level of service and value to their customers."

OneShield Rapidly Penetrating Marketplace

This transaction is the latest in a series of customer acquisitions and strategic acquisitions for OneShield. Starting with an early success providing real-time bindable quotes for a major Workers' Compensation company, OneShield has since partnered with fourteen other insurance entities to provide insurance e-commerce solutions.

About OneShield

OneShield, located in Burlington Massachusetts, is positioned to be the leading provider of commercial insurance distribution and technology services over the Internet. With an end-to-end package of online distribution, service and connectivity solutions, OneShield helps carriers, brokers and small business aggregators such as commercial banks transform their businesses for the new economy. The company was founded in September 1999 by principals with a successful track record in technology, financial services and company start-ups, and by insurance executives who believe the future of the industry lies with the Internet. Psilos Group Managers and Earlybird Venture Capital, as well as a large group of insurance industry leaders provided funding.

About Willis

Headquartered in London - with North American headquarters in Nashville, Tenn. - Willis develops and delivers professional insurance, reinsurance, financial, human resources consulting and actuarial services to corporations, public entities, institutional clients and individuals. Employing more than 12,000 people in more than 230 offices around the world, Willis uses all of its expertise to help its clients succeed. Willis is owned by Kohlberg Kravis Roberts & Co. (KKR) and six of the largest insurance companies in the world.

The forward-looking statements contained in this release are subject to certain risks and uncertainties. Actual results could differ materially from current expectations. Among the factors which could affect the company's actual results and could cause results to differ from those contained in the forward- looking statements contained herein are subsequent customer acquisition, customer acceptance of the company's products and services, and timing of customers' decisions to enter into agreements for the company's products and services