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 VictimsROMULUS, 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.