CCC Information Services Inc. Launches Pilot Program for CCC Subrogate Auto Solution; Helps Efficient Exchange of Information Among Insurance Carriers.
Subrogation, which accounts for 3.5 million automotive claims each year, remains a cumbersome and timely manual process. To begin combating inefficiencies, CCC Information Services Inc. (NASDAQ:CCCG) is introducing a pilot program for its electronic subrogation product, CCC Subrogate(TM) Auto Solution, enabling insurers to begin using - and benefiting from - an automated solution. Subrogation is the process by which an insurance company recovers funds paid to an insured if the loss was caused by a third party.
A pilot program, beginning this Fall and scheduled to end in early 2005, will enable two national insurance companies - which represent 21 percent of the industry's automotive claims volume - to create, send and respond to one another's subrogation demands using CCC's Web-based solution. Once the pilot is complete, CCC will make CCC Subrogate Auto Solution available to the industry to assist insurers in similar functions, as well as tracking, reporting, and managing the overall workflow of their subrogation claims.
"We've worked with many insurance carriers of varying sizes to gather requirements for developing a solution to meet the needs of subrogation professionals," said Githesh Ramamurthy, chairman and chief executive officer of CCC. "Our discussions have confirmed that insurers are serious about managing and recapturing their subrogation dollars. The CCC Subrogate pilot program is the first step in assisting carriers in achieving this goal."
Recent research by the National Association of Subrogation Professionals (NASP), stated that the subrogation process - from the first notification of a claim to closure - takes an average of 168 days, nearly double the amount of time insurance companies had targeted in 2003. Through an RFP process, an advisory panel comprised of members of insurance companies from across the nation nominated CCC to build - in a collaborative manner with the panel - a subrogation product that insurance companies can use to more effectively manage the subrogation process. NASP is a non-profit trade association comprised of more than 1400 insurance company subrogation specialists, attorneys practicing in the field of insurance subrogation and vendors serving the subrogation needs of the insurance industry.
According to Griff Williams, president of NASP, "Electronic subrogation demand and response exchange will be the wave of the future. The entire subrogation process will move faster and operate on a more cost-efficient basis. Positive results from this pilot will help change subrogation - for the better - forever."
CCC Subrogate Auto Solution is the most recent example of how CCC is leveraging its open architecture to offer versatile products to the market. The company has made a significant investment in its Web-based platform and continues to invest an estimated $30 million annually in product development and programming. Exclusively focused on improving the automotive claims and collision repair industries, CCC helps to eliminate barriers of communication between insurers, repairers and a range of other industry participants to more efficiently bring claims to resolution. CCC currently handles more than 1.5 million claims-related transactions each day.
"We believe the benefits of CCC Subrogate Auto Solution will accrue from improving the yield and reducing the administrative time spent by a subrogation specialist in tracking such claims. An electronic method represents huge advantages in cycle time alone and that's just the beginning," added Ramamurthy.
CCC Information Services Inc., headquartered in Chicago, is a leading supplier of advanced software, communications systems, Internet and wireless-enabled technology solutions to the automotive-claims and collision-repair industries. Its technology-based products and services optimize efficiency throughout the entire claims management supply chain and facilitate communication amongst more than 21,000 collision-repair facilities, 350 insurance companies, and a range of industry participants. For more information about CCC Information Services Inc., visit our web site at www.cccis.com or contact Michelle Hellyar of CCC at 312-229-2830 or John Harris of CCC at 312-229-2693.
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor provisions of those sections and the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in the Company's filings with the SEC, and that actual results or developments may differ materially from those in the forward-looking statements. Specific factors that might cause actual results to differ from expectations include, but are not limited to, competition in the automotive claims and collision repair industries, the ability to develop new products and services, the prolonged sales and implementation cycle of some of the company's new products, the ability to protect trade secrets and proprietary information, the ability to generate the cash flow necessary to meet the Company's obligations, the outcome of certain legal proceedings, and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof. The Company has based these forward-looking statements on information currently available and disclaims any intention or obligation to update or revise any forward-looking statement.
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|Date:||Oct 19, 2004|
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