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According to CIECA, Insurers Use E-Commerce To Better Serve Auto Accident Victims

8 August 2000

According to CIECA, Insurers Use E-Commerce To Better Serve Auto Accident Victims

    ROMULUS, Mich. - Consumers that have been involved in auto accidents are 
familiar with the challenges of the claims process.  Delays in waiting for an
adjuster to see the car, numerous phone calls to arrange for towing and rental 
cars, and seemingly endless amounts of paperwork are common complaints with the
traditional process.  A set of e-commerce standards now promises to streamline 
the entire process, allowing claim data and digital images of the damaged 
vehicle to flow seamlessly between the computer systems of all the parties 
involved in the process.  The result will be reductions in the time to settle 
the claim and repair the car, with less paperwork and hassles for the vehicle 
owner.  The efficiencies gained in the process could even contribute to future 
premium reductions.

    With an impressive joint announcement, several of the top auto insurers in
the country went on record today that they will be using industry standards to
implement electronic commerce in the auto collision repair industry.  Already,
many insurers receive repair estimates and bills electronically, but much
greater efficiency is sought through standardization of these programs.

    In 1994, the industry created the Collision Industry Electronic Commerce
Association (CIECA) to lead its standardization effort.  Since then, many
standards have been completed and several have been implemented.  However,
there has been difficulty supplanting proprietary communication programs that
have been in use for some time.  This coordinated announcement makes clear
that industry standards will replace such programs as insurance companies move
forward.

    Roger Cadaret, Executive Director of CIECA provided this perspective: "The
Collision Repair industry has done an amazing job of using modern
technologies, even though its efforts have not been well coordinated.  I dare
say very few people know that electronic commerce has been a part of repairing
damaged vehicles for years.  What we have done now, is to make it possible for
more repair centers and glass shops to use electronic communications and the
Internet for sending claims, ordering parts, and receiving electronic
payments.  This will make it possible for any shop to talk to any insurer or
vendor with 'off the shelf' software programs.  Electronic commerce will soon
have a huge impact on this business."

    The insurers taking part in this move to standardization provided the
following official statements.

    Allstate Insurance:  "Electronic Commerce helps the insurance and
collision industries become more efficient, which benefits our common
customers.  As one of CIECA's founding members, Allstate has always supported
the development of electronic commerce within the collision industry.  We have
worked with many of the CIECA subcommittees to develop implementation
standards and our intentions are to continue with those efforts.  As new
internal systems are developed at Allstate we will look to CIECA standards to
help facilitate implementation."

    Farmers Insurance:  "Farmers has been a supporter of CIECA since its
inception.  Electronic Commerce plays a major role in the day to day business
conducted within the insurance and collision industries.  CIECA's outstanding
work in the development of standards has encouraged open competition, elevated
levels of efficiency, and increased overall customer satisfaction.

    Nationwide Insurance:  "Nationwide Insurance recognizes the valuable role
that business-to-business electronic commerce plays in providing superior
customer service.  The cost-effective and timely implementation of B2B EC can
best be accomplished through the use of standards.  CIECA and its
participating members have provided a leadership role in the collision repair
industry in establishing these standards.  Nationwide Insurance actively
participates in the development of CIECA standards and has implemented these
standards when appropriate."

    Progressive Insurance:  "Progressive supports the CIECA standards and the
value they bring to the collision industry.  Projects which require
interfacing with our collision trading partners will include plans for
incorporating the CIECA standards.  One way to increase our customer's
satisfaction with respect to their vehicle repair will be to add efficiencies
in the current process.  The CIECA standards provide the ground work to
electronically connect new and existing trading partners in a much more cost
effective manner.  Being electronically connected to our trading partners
provides the opportunity to help ensure our customers are getting a timely and
quality repair."

    State Farm Insurance:  "State Farm has strongly supported the use of CIECA
standards for the past five years.  From helping in the development of these
standards, to actively implementing them in production, State Farm supports
one set of open standards for the entire industry."

    USAA Insurance:  "It is imperative we use industry standards to open up
communication channels throughout the industry.  We, at USAA are committed to
CIECA standards because they will continue to allow us to facilitate the
process of transmitting data between the insurance carriers, repair
facilities, and our other business partners.  USAA currently uses CIECA
standards for its rental and salvage processes and will continue to adhere to
forthcoming standards as they are developed."

    Other major insurers, also members in good standing of CIECA, were unable
to provide specific insights at this time regarding their use of CIECA
standards.  Their support of CIECA, however, and their involvement in its
standards development efforts, speaks to their belief in the use of industry
standards for electronic commerce.  Many technology companies currently
involved in the claims industry, and several others wanting to become involved
are also supportive of CIECA standards.

    CIECA'S mission is to facilitate the implementation of Electronic Commerce
and provide industry standards that encourage open competition, and are in the
best interest of all entities in the Collision Industry.  It is directed by a
Board of Trustees, and its committees are composed of industry volunteers.

    CIECA addresses Electronic Commerce problems on a national scale.  It has
developed processes for identifying and prioritizing industry issues,
establishing Action Teams to design solutions, and then working these
solutions through the broadest base of acceptance mechanisms possible, such as
the American National Standards Institute.