United Financial Adjusters to Bring driversshield.com's Web-Based Auto Claims Management Services to Market
26 July 2000
United Financial Adjusters to Bring driversshield.com's Web-Based Auto Claims Management Services to Market
PLAINVIEW, N,Y. - FIRST PRIORITY GROUP, INC. announced today that its
driversshield.com subsidiary has signed an agreement with United Financial
Adjusting Company, whereby they will become the exclusive Agent to market
http://www.driversshield.com's services to the insurance industry marketplace.
UFAC, based in Cleveland, Ohio, specializes in providing claims management
services, software and e-commerce business applications to the property and
casualty insurance industry and to self-insured corporations. UFAC's parent
company, Netrex Holdings (Netrex), is a private investment company, which is
partly owned by Progressive Corporation , the fifth largest U.S.
auto insurer. The Company and its subsidiaries -- JW Software, Frontier
Adjusters (Amex: FAJ), DBG Technologies and Vedder Software -- serve over
500 insurance clients in the United States and Canada and have over
300 employees and 650 franchised offices throughout the U.S. and Canada.
driversshield.com provides cost-saving, Internet-based collision repair
and claims management services to auto insurers, keyed to its nationwide
network of 2,400 high quality, contracted collision repair centers and its
interactive Web site, built and supported by its strategic partner, Electronic
Data Systems . Through leading financial institutions and
membership organizations, driversshield.com also offers consumers the nation's
leading program of automotive-related services and discounts.
John Davies, Chief Executive Officer of Netrex, said, "driversshield.com
has created a superior Web-based service that will be able to significantly
improve auto insurers' customer service. We believe driversshield.com's
services will be an excellent compliment to our Web-based claims management
systems and services. We're excited about the possibilities this agreement
opens up and look forward to a close working relationship with FPG."
Barry Siegel, Chairman and Chief Executive Officer of FPG,
driversshield.com's parent, was also enthusiastic. "UFAC has the reach,
reputation and relationships to enable us to get our story across at the
highest levels in the auto insurance industry," said Siegel. "The fact that
they agreed to be compensated primarily in the form of warrants for FPG stock
for any business they bring us attests to their confidence in what we've built
and what we can achieve in the future." The agreement provides for UFAC to
receive warrants, at the then-current stock price, for each collision repair
driversshield.com handles as a result of a UFAC contract. "UFAC will benefit
most if it generates rising claim volume for us, and that should result in a
rising stock price, which will benefit FPG and its shareholders" Siegel said.
The driversshield.com Web site went on line officially May 31st, and the
company signed up its first two clients in June, one a major mid-west
insurance company, the other a large well known nationwide towing company.
Installation of driversshield.com's system has already been completed at one
of the insurer's offices and claims processing has already begun. The
insurer's remaining offices should be completely installed before year-end and
has an annualized expected claim volume of approximately $75MM.
Since its founding in 1983, First Priority Group has built a national
reputation for efficient, cost-saving management of collision claims for
self-insured corporate and municipal vehicle fleets through its other
subsidiary, National Fleet Service (NFS). NFS' clients include IBM, Hershey
Foods, Coca-Cola, Time Warner, Media One, Cablevision and a host of other
prestigious national and international companies. driversshield.com was
established in early 1999 to exploit the parent company's long established
auto claims experience and proprietary systems using Internet-based e-commerce
techniques.
