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Presentation date: E-Fusion – 10/22/2008

TINNIRELLO:. One of the first to get started on the Web.
McDONALD:. They’ve been through Web 0, Web 1, Web 2, they’re very familiar with it.
John Pogas runs a lot of the e-commerce operations for Aon. Aon is extremely active, running a lot of affinity operations where they have specialized insurance operations. They have more than a decade of experience in e-commerce. They do it in a way that’s extremely effective and tons of lessons learned.
Then when we get to Brian Ocheltree, Brian is interesting. He has an interesting background in technologies, very, very deep in that area. But in terms of what his company’s doing now, why I found it so intriguing is they help companies hook up with people who make online inquiries by delivering them phone interviews. He’ll explain it much better than me. I was always intrigued by this because the whole push has been to automate everything, to try and do everything online. You can’t. But by combining the best of both, you can actually get a much more effective solution out of there.
TINNIRELLO: Jaimie, thanks again for joining us.
JAIMIE PICKLES: Thanks so much for that introduction and I’ve been looking forward to speaking on online insurance. It’s been two years since I last addressed the E-Fusion audience in Boston and there have been quite a few developments. So, what I’d like to do is dive in to a few quick slides on trends with respect to the consumer, the volume, the demographics and then we’ll get into my observations about how things are trending in general with the online insurance world. Paul, as you mentioned, the Internet’s not going away – much to the dismay of some in our industry who wish it would. It’s been such a disruptive technology and has changed much of how we conduct business today with respect to consumers.
The first slide shows some data from Nielsen Online. It provides data from April, 2004 through April, 2008. It shows the number of unique visitors, online visitors for insurance. It includes auto, home, health and life and as you’ll see the growth is upwards from April ’04 to April ’08 we saw 137% growth over that four-year period. That latest data point, April ’08, indicates 28 million unique online visits. So the audience is large and growing.
The next slide shows a little bit of a drill down into the personal auto business – data from ComScore. When we look at online auto insurance individually, data from the ComScore survey shows that unique visits actually fell in each of the last three quarters, year over year, through the second quarter of 2008. So when you look at auto specifically, it’s certainly not growing the past few quarters and you actually see a small decline. Those are visitors. Let’s look at shoppers. Shoppers are defined as visitors who submit a quote at any given site during the quarter. ComScore shows a recent dip in shoppers for the first two quarters of 2008, year over year. Again, these are visitors who get a quote. What we may be seeing is maybe a couple of things, just talking out loud here, maybe some shopping fatigue, maybe few incentives to shop or a reduction of advertising expenditures or a combination of all three.
I don’t think that this downward trend will continue. Again this is just through Q2 so in Q3 I suspect that we’ll see an increase year over year over that quarter and perhaps Q4 into ’09 as well, given the economy and the increase in shopping that we would expect.
Moving on to the next slide – this is basically again ComScore data showing the rate at which consumers shop at insurer sites and aggregator sites remaining fairly steady.
Next slide is again some information from Nielsen Online that shows the top insurance sites as of August 2008, that month. Here are the top 10 sites. You’ll see that auto is the primary product which consumers are shopping for. A strong showing by the direct carriers and aggregators, only one health site and not surprisingly based on what we’ve seen in the past, only one independent agency carrier – Hartford – is shown. This will give you a sense for the size of each Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12
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