Foremost Insurance Group Signs $12 Million Agreement with MCI for Telecommunications Services

Foremost Insurance Group, a leading insurer of manufactured homes and recreational vehicles, has selected MCI as its telecommunications service provider after a rigorous evaluation process. The five-year agreement, valued at $12 million, will provide Foremost with access to MCI's value-added services, including Insurance Value Added Network Services (IVANS) and call center consulting services. This partnership is expected to enhance Foremost's customer service efficiency and minimize its telecommunications costs.

Key Takeaways:

• Foremost Insurance Group has signed a five-year, $12 million agreement with MCI for telecommunications services, marking a significant shift from its previous 43-year relationship with AT&T.
• The agreement covers voice, data, imaging, and videoconferencing services, and is expected to save Foremost up to 30 percent on its domestic and international telecommunications expenditures.
• MCI's Integrated Client Services Division (ICSD) will provide consulting services to improve efficiencies at Foremost's major call center in Grand Rapids.
• Foremost will also use MCI Vnet, a virtual private network service, to connect its headquarters with its 21 locations around the country, as well as MCI 800 service and MCI Card.
• Larry Orange, executive vice president for Foremost, emphasized the importance of telecommunications in the insurance industry, stating that MCI's capabilities and pricing made it the best choice for the company's needs.
• Tom Ballance, regional vice president for MCI Business Markets, highlighted the industry-specific services available through IVANS and MCI's expertise in call center management as key factors in the agreement.

Statistics:

• $12 million: The value of the five-year agreement between Foremost Insurance Group and MCI.
• 43 years: The length of Foremost's previous relationship with AT&T.
• 30%: The potential savings on international telecommunications expenditures through MCI's value-added services.
• 21 locations: The number of locations across the country that Foremost will connect to its headquarters using MCI Vnet.
• $13.3 billion: MCI's annual revenue in 1995, positioning the company as the world's third-largest carrier of international calling.

Sources:

• Business Wire, February 7, 1995
• MCI Media Relations, Barbara Brabec (312/819-6741)
• Foremost Insurance Co., Ruth Walker (616/956-8895)