Bermuda-based XL Capital Ltd. yesterday rolled out the company's foray into the world of electronic commerce with an Internet service that allows managers to assess their corporation's overall exposure to risk.

The project is the start of a much larger vision XL Capital has of using Internet technology to market and distribute insurance and risk management products to companies worldwide. The project also fits in with Bermuda's vision of becoming a centre for electronic commerce.

As a start XL, along with Aon Corp., has set up InQuisLogic Inc. in the US to develop a computerised system and database that allows companies to evaluate a wide range of risks over the Internet. InQuisLogic will also allow the companies to transmit documents and transact insurance business over the Internet.

The announcement was made to coincide with the start of the week-long Risk and Insurance Management Society, Inc. (RIMS) conference at this Texas city. The timing allows InQuisLogic to introduce the product to some of the 9,000 participants attending one of the largest risk managers conferences of the year.

William Thornhill, the former executive vice president of XL Insurance Co. of America, Inc. and XL Insurance Ltd., has been named president and chief operating officer of the new company.

"Traditionally, an organisation's risk management has been the responsibility of the chief financial officer and/or risk manager,'' Mr. Thornhill said.

"Our strategy is to bring risk management to the forefront of the organisation by extending its reach to include business managers and senior executives. In doing so, they become more aware of the spectrum of risks in their organisation and their impact on the company's bottom line.'' In an interview with The Royal Gazette , XL Insurance Ltd. president and chief executive officer Robert Cooney said XL will introduce the initial package on the Internet in the third quarter of this year.

"We began work on InQuisLogic a year ago and formed the company to respond to the changing needs of risk managers, chief financial officers, treasurers and other business professionals who are confronted with expanding and increasingly complex science of managing emerging types of risk, as well as traditional event risk,'' he said yesterday.

Mr. Cooney said a holding company is being set up in Bermuda for InQuisLogic.

XL will use the holding company to launch "two or three'' other electronic commerce companies that are in the pipeline.

He did not say what the other companies will be doing on the Internet in terms of electronic commerce. XL plans on holding the largest chunk of ownership in the holding company while bringing other key companies into the ventures at the operating level.

He said the project fits in with XL's new push to market the company as dealing with a wide range of risks not traditionally associated with insurers.

XL estimates that only an average of 18 percent of an organisation's risk is covered through insurance.

"We're allowing management to address the full spectrum of risks that affects an enterprise, whether its political, financial, regulatory or any other type of risk,'' he said. "Managing risk is a critical part of managing an organisation. We are helping these companies to do a better job.'' He said Asian and South American companies, which traditionally don't have a sophisticated risk management system, will find InQuisLogic particularly useful.

XL hopes other companies in the insurance industry will invest in the operating company. Chicago-based Aon Corp., an insurance and brokerage company, has already come on board. IBM Corp. is working on developing the database. Web site developer Cmgi is building the Internet site. Telecordia Technologies and ELF is working on developing electronic forms software.

"This is probably the most comprehensive and most furthest advanced project so far that uses Internet technology to do enterprise risk management,'' he said.

InQuisLogic will allow companies to eventually deal with specific risks, send documents, and find vendors who'll cover their risks. InQuisLogic chief knowledge officer Scott Lange said costs will be brought down by selling advertising to companies in the insurance business.

To find out more about the company visit www.inquislogic.com on the Internet.

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