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Research Report on Auto Insurance And the Internet

9 February 1999

BancBoston Robertson Stephens Issues Research Report on Auto Insurance And the Internet

    SAN FRANCISCO, Feb. 9 -- The following is being issued by
BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:

    BancBoston Robertson Stephens senior electronic commerce analyst Gary
Craft recently issued a report on the structural impact that Internet
distributors could have on the private passenger auto insurance industry.
    Craft believes that customer switching costs, as well as supplier
switching costs, must decline significantly before the Internet can have a
positive impact on the independent agency network.  "Historically, the high
cost of entry to distribute insurance in the physical world has prevented many
carriers from developing independent distribution.  The Internet obviates much
of these costs, so there is really no reason why a carrier cannot control its
own destiny," said Craft.
    In his detailed report, Craft describes how Internet distributors compete
in the private passenger industry. Craft provides an overview of competitive
strategies, potential standards, and rate sharing technologies that cause
private passenger auto insurance companies to begin competing on brand and
customer service versus technology and distribution.  Craft draws many
parallels with the smart card industry.
    Clients interested in receiving more information should contact their
salesperson directly.
    BancBoston Robertson Stephens, the Section 20 subsidiary of BankBoston
, is a leading international investment bank focused on growth
companies in the technology, life sciences and healthcare, information &
business services, retail & consumer products, real estate,
telecommunications, media, broadcasting, and gaming & lodging sectors.  The
firm's 55 senior research analysts cover more than 575 companies. Since its
founding in 1978, BancBoston Robertson Stephens has raised $49 billion in
initial public offerings, follow-ons and convertible offerings.  The firm has
also assisted in 300 mergers and acquisitions transactions valued at more than
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including 11 lead transactions, raising more than $5.5 billion.  With offices
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BancBoston Robertson Stephens employs over 1,100.
    The information contained herein is not a complete analysis of every
material fact respecting any company, industry or security.  Although opinions
and estimates expressed herein reflect the current judgment of BancBoston
Robertson Stephens, the information upon which such opinions and estimates are
based is not necessarily updated on a regular basis; when it is, the date of
the change in estimate will be noted.  In addition, opinions and estimates are
subject to change without notice.  This Report contains forward-looking
statements, which involve risks and uncertainties.  Actual results may differ
significantly from the results described in the forward-looking statements.
Factors that might cause such a difference include, but are not limited to,
those discussed in "Investment Risks."  BancBoston Robertson Stephens from
time to time performs corporate finance or other services for some companies
described herein and may occasionally possess material, nonpublic information
regarding such companies.  This information is not used in the preparation of
the opinions and estimates herein.  While the information contained in this
Report and the opinions contained herein are based on sources believed to be
reliable, BancBoston Robertson Stephens has not independently verified the
facts, assumptions and estimates contained in this Report.  Accordingly, no
representation or warranty, express or implied, is made as to, and no reliance
should be placed on, the fairness, accuracy, completeness or correctness of
the information and opinions contained in this Report.  BancBoston Robertson
Stephens, its managing directors, its affiliates, and/or its employees may
have an interest in the securities of the issue(s) described and may make
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deposits or other obligations or guarantees of BankBoston N.A., and are
subject to investment risk, including possible loss of any principal amount
invested.