SIR.L Regulatory News (SIR)

26 Sep 2006 10:08

Sirius Financial Solutions PLC26 September 2006 Sirius Financial Solutions Sirius Financial Solutions plc launches NEXUS - an exciting new e-commerceservice for trading Insurance Schemes Sirius Financial Solutions (AIM:SIR) launches NEXUS, a new e-commerce insurancetrading platform, to a receptive audience of leading UK insurance brokers andthe insurance trade press. Insurance 'schemes' - which are designed for niche markets such as road haulageand let property - are a highly-profitable and growing business for brokers. TheUK has more than 2,000 broker-led schemes. This accounts for over £1.5bn inannual premiums for the top-four insurers alone. Although the schemes market has been highly profitable, very few brokers sellthese products using the internet. Up until now ecommerce for this activity hashad significant barriers to entry, demanding major up-front IT investment andthe ability to support and service online business 24/7. NEXUS removes these barriers to e-commerce by providing a proven state of theart e-trading environment, built around the well-established and criticallyacclaimed Sirius21 managed service, adopted by over 150 brokers since its launchlast year. NEXUS offers a unique business model which replaces the high up-front andunpredictable ongoing costs normally associated with setting up an ecommerceservice, in favour of a shared-revenue model based on the amount of business(gross written premium) generated by each scheme. This should lead to a significant and timely increase in the number of brokerled schemes traded via the internet, at a time when they are seeing anincreasing threat from some Insurers wishing to go direct. NEXUS benefits the whole insurance value-chain by giving brokers a moreefficient distribution channel to consumers and other brokers, insurers enhancedstraight-through processing of broker based business and policyholders animproved service and purchasing experience 'NEXUS removes some of the traditional barriers to scheme business expansion forbrokers by making it easier to open up new markets and introducing a moreefficient trading model. As an insurer, PBS Holdings and its underwritingbusinesses see NEXUS as an innovative way of expanding intermediateddistribution.' Jonathan Davey, CEO PBS Holdings Ltd 'Business traded with Allianz via NEXUS will come into us via straight throughprocessing using industry standard data capture. This will give us significantupside in knowing the business we are on cover for more quickly and accurately.' Chris Hanks, General Manager, Commercial Division, Allianz Cornhill The introduction of NEXUS by Sirius provides a unique service to the market andwill further drive both the take-up of its MSP, Sirius21, as well as growingrecurring revenues by creating a brand new revenue stream based on a percentageof the business each scheme generates. 'NEXUS offers a unique e-commerce service to the insurance market - a clearfirst - giving Sirius competitive advantage and more compelling reasons forbrokers to move onto Sirius21.' Stephen J Verrall, Chairman and Group ChiefExecutive, Sirius Financial Solutions. 26 September 2006 Enquiries: Sirius Financial Solutions 0121 779 8400Stephen Verrall/ Richard Bowser College HillAdrian Duffield/Ben Way 020 7457 2020 This information is provided by RNS The company news service from the London Stock Exchange