SCOTTSDALE, Ariz. -- December 11, 2000 - Continued hardening of the workers' compensation insurance market into 2001 and beyond is being combated by strategic partnering of two cost-control services.

Scottsdale-based Company Nurse®, which provides telephone triage of workplace injuries, and WorkComp.com headquartered in Walnut Creek, Calif. today announced a formal alliance to serve agents, brokers and insurers.

Paul Binsfeld and Robert Gore, CEOs of Company Nurse and WorkComp.com, cited the California workers' compensation market as the bell weather of national rate trends.

Rates in California during 2000 were 18% higher than the previous year, they point out, and an additional 20% increase is scheduled starting Jan. 1, 2001. Agents surveyed by WorkComp.com report quoting risks as high as double previous rates. Binsfeld and Gore anticipate comparable rate hikes to follow throughout the nation. The California Workers' Compensation Institute and the Council of Insurance Agents & Brokers recently have conducted extensive studies that reflect these views.

The strategic alliance will provide insurance agents and their clients with around-the-clock enrollment in the Company Nurse service from either Web platform, along with regulatory information and marketing and customer relationship service.

Gore said WorkComp.com will launch a program for enrolling managing general agents during the coming first quarter. "WorkComp.com is launching the first nationwide marketing platform for MGAs and other program owners to instantly reach agents with specific, immediate placement needs. We will streamline the process, offering the potential of immediate time and cost savings," said Gore, former chief national marketing executive for a large workers compensation insurer.

Binsfeld explained that the Company Nurse program eliminates unnecessary medical costs through front-end management of the claim processing cycle.. "Results produced include an average 30% reduction in number of reportable claims, 80% reduction of emergency room referrals and minimizing reporting lag time from an industry average of six days to less than one hour," he said.