Among the new contracts is one with Automotive Risk Management, Inc. (ARM), of Weston, FL. Under the contract, IMS Direct, IMSG's direct marketing subsidiary, will provide rate quotes and service on behalf of ARM to customers purchasing auto insurance through an expanding network of auto dealers. The customer will be able to obtain competitive insurance rates from various companies via telephones on free-standing kiosks in new car showrooms.
The kiosks are placed and serviced by World Interactive Network, ARM's partner in the project. ARM is a technology company working with approximately 8,000 auto dealers. IMSG expects revenues from its new venture with ARM to commence late in the third quarter. Patrick Clawson, vice-chairman of ARM, says the kiosks are already in place in south Florida, and nationwide distribution is planned. `So far, the buy rate is extremely successful,` says Clawson. `Of the customers who pick up the phone at the kiosk to obtain quotes, approximately 40% are purchasing auto insurance.`
The Company also entered into a new contract with Homesite, an Internet direct insurance provider based in Boston. IMSG, in partnership with First Community Insurance Company, a multi-line property and casualty carrier, will provide and process flood insurance policies for Homesite's homeowners insurance customers. This program will become operational and begin generating revenue August 1, 1999. IMSG also signed a three-year contract with First Insurance Company of Hawaii to provide flood insurance processing for their Write-Your-Own flood insurance program beginning October 1, 1999. In addition, IMS Direct has also contracted with NationsBank for flood monitoring and force placement of flood insurance for the Bank's four commercial divisions located in Dallas, TX, St. Louis, MO, Charlotte, NC and Jacksonville, FL. Geotrac, a wholly-owned IMSG subsidiary, also acquired 53 new contracts. Geotrac is a national provider of comprehensive flood compliance services for financial institutions engaged in mortgage lending. Some of the new clients include Standard Financial Mortgage Corporation, Prudential Savings Bank, TCF Mortgage Corporation, Third Federal Savings (Cleveland, OH), Tricor Mortgage Corporation, Aegis Mortgage, Provident Mortgage Corporation, Northern Trust Bank Company; Alliance Mortgage Company; and Sky Financial Group. Geotrac president Daniel White expects these contracts to `produce incremental revenue as early as the third quarter of 1999.` White indicated that flood zone revenues seemed to have bottomed out in April of 1999, and added, `These new agreements should re-establish quarter-over-quarter growth in the number of flood zone determinations processed.`
Insurance Management Solutions Group, Inc., (www.outsourceimsg.com), including its subsidiaries, offers comprehensive outsourcing solutions including policy and claim administration services as well as financial and statistical reporting, flood and hazard determinations, training and marketing support. Certain statements contained in this press release, including statements regarding the anticipated development and expansion of the Company's business, the intent, belief or current expectations of the Company, its directors or its officers, primarily with respect to the future operating performance of the Company, and other statements contained herein regarding matters that are not historical facts, are `forward-looking` statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to uncertainties regarding the market, acceptance of the Company's new services, difficulties inherent in locating suitable acquisition candidates and consummating acquisitions, difficulties in obtaining new customers and retaining existing customers, difficulties in achieving expected expense reductions as a result of management initiatives, difficulties in determining the potential success of new sales and marketing personnel, and those risks and uncertainties discussed in filings made by the Company with the Securities and Exchange Commission, including those risks and uncertainties contained under the heading `Risk Factors` in the Company's Registration Statement on Form S-1 as filed with the Securities and Exchange Commission. --30--flb/ny CONTACT: Insurance Management Solutions Group, St. Petersburg David K. Meehan President and Chief Executive Officer Kelly K. King Chief Financial Officer 877/711-4674 or Makovsky & Company, New York John D. Lovallo Senior Vice President John D. Menditto Senior Account Executive 212/508-9600 KEYWORD: FLORIDA INDUSTRY KEYWORD: INSURANCE Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: http://www.businesswire.com
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