ADP Claims Services Group's Peter Op de Beeck Outlines Vision of Claims Community; Defines Need for Open, Modular, Accessible Solutions.

Business Editors

SAN RAMON, Calif.--(BUSINESS WIRE)--May 8, 2002

Speaking before an audience of 150 insurance, collision repair and automotive recycling industry leaders attending ADP(R)'s Convergence 2002 client conference, Peter Op de Beeck, president of the Claims Services Group of Automatic Data Processing, Inc. (NYSE:ADP), outlined the need to build a community that makes the automotive claims industry more efficient. He emphasized the importance of open, modular, accessible solutions and reinforced ADP's commitment to furthering this vision.

Op de Beeck discussed the role technology has played so far, and why he feels open, modular, accessible solutions are so important. Op de Beeck contends that the Internet, which was supposed to make things better, has actually convoluted the industry as multiple, proprietary applications have crowded the market.

"We may be connected on a superficial level, but our systems and applications do not talk to each other," said Op de Beeck. The result has been confusion, not the comprehensive solution that industry leaders envisioned.

The stakes of this disconnection are high according to Op de Beeck. "If you think about the number of steps in the claims process, the number of parties involved, the value-added applications that can streamline steps and automate collaboration among parties, it's not difficult to imagine cutting a substantial chunk from our $20 billion in annual loss adjustment expense."

Op de Beeck described how a truly open, modular, accessible solution could provide several billions in annual savings to the automotive claims industry by enabling:

-- Increased use of electronic communication

-- Reduced cycle time

-- Elimination of redundant data entry

-- Optimized workflow to reduce manually processed claims

As Op de Beeck explained it, truly open solutions are open not only to integration within individual organizations, but to vendors and competitors as well. Making these solutions modular decreases time to market, enables easy updates and allows users to structure their workflow as they desire. And finally, accessibility means getting needed information anytime, anywhere and from any device. Everyone in the automotive claims industry has a role to play in building these solutions.

"As Robert Metcalfe, the inventor of Ethernet, explained it, the value of a network grows exponentially with its number of users," said Op de Beeck. "Each of us, by making a commitment to using an open, modular, accessible network in the automotive claims industry, can increase the value of that network for ourselves and others."

While each player's contribution is critical to the effort, Op de Beeck sees an enabling and facilitating role for a key industry provider.

"I believe that ADP Claims Services is the only company in the world with the proven resources, experience and know-how to address the explicit need for a standardized approach to automated claims processing," Op de Beeck asserted. "And with our 7,000 insurance clients, 12,000 collision repair clients, and 3,000 auto recycling clients, we are successfully positioned to build a community across the entire claims spectrum. This is our single most important initiative for the coming years."

ADP Claims Services Group, a wholly owned subsidiary of Automatic Data Processing, Inc. (NYSE:ADP), is a leading provider of integrated business solutions for clients in the property and casualty, general health, collision repair and automotive recycling industries. ADP, with approximately $7 billion in revenues and over 500,000 clients, is one of the largest independent computing services firms in the world.

ADP Claims Services Group is headquartered at 2010 Crow Canyon Place, San Ramon, California 94583; 925/866-1100.