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					 "Raising business efficiency and customer
services standards in automotive claims: an
         Eastern Europe example"

  Focus countries: Romania, Poland, Russia


          Dr. Richard J. Nathschlaeger

            Tashkent, April 15, 2011
Solera – a Global Company with a strong
  focus on Central & Eastern Europe




      Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
Solera – the only global provider of claims management solutions
   Leading global provider of estimating software and services to the automobile
    insurance claims processing industry
     - US$558 million in revenue in FYE 30/6/09
     - 63% of revenue generated in EMEA; 37% in the Americas

   Number 1 or 2 position in every market we serve

   Our clients have included each of the 10 largest European and North
    American auto insurers

   Founded in 1966, with a presence in 53 countries and approximately 2,200 full-
    time employees

   Over 72,000 customers including:
     - 1,500 automobile insurance carriers
     - 36,000 collision repair facilities
     - 7,000 independent assessors
     - 29,000 automotive recyclers and dealers




           Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
                                        The World of Solera

AUTOonline’s business model complement well Solera’s operations
in 53 countries across 6 continents




    Solera Countries




         Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
 Central and Eastern Europe (CEE) in the Solera World

Audatex North-America   AX Ibero - America
                         AX Ibero-America    Audatex UISA       Audatex GAS              ABZ           Audatex BEFIG      Audatex CEE      Audatex-APAC
   SAN DIEGO, CA        SAO PAOLO, BR        READING, UK      MINDEN, GERMANY     ZEIST, NETHERLANDS BRUSSELS, BELGIUM   VIENNA, AUSTRIA   TOKYO, JAPAN




        Solera
     SAN DIEGO, CA




                        Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
  “If you can find a path with no
obstacles, it probably doesn’t lead
            anywhere.”
                                                                                 - Frank A. Clark




Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
Countries in CEE




     Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
Audatex – CEE in 2011




   AT- 1969               CZ-1994               HU-1994                           LT-2009           HR   Sl




   PL-1997                 RU-2003               UA-2004                                LV          BA   RS




    SK-2004                RO-2005                TR-2008                               EE          MD   BY




          Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
Audatex in Central and Eastern Europe


Opportunity:                                                                     Action:
Market Development                                                               Audatex CEE Objectives

• High economic growth region                                                    • Meet and exceed customer
• Demand for electronic workflow partner                                             expectations
• Customers have quality expectations                                            • Respond to dynamic market
                                                                                     developments
                                                                                 • Expedite global knowledge, local
Voice of our customer                                                                focus
• Big 5 insurers go CEE                                                          AX-CEE: Facts & Figures
     • Allianz, AXA, Generali, Uniqa, VIG                                        • HQ in Vienna
• Manufacturers go CEE                                                           • 100 employees in the region
     • VW, Dacia-Renault, Kia, Hyundai, Peugeot                                  • Regional product development
                                                                                     capabilities



          Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
Market facts - Romania


                                                                 • Population: 21 mill.

                                                                 • GDP/capita: € 5.510

                                                                 • Car park: ~ 5 mill.

                                                                 • Insurance related claims: 0.85 mill

                                                                 • % of insured vehicles: 85 %




       Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
Market dynamics - Romania


• The repair market is dominated by Dacia – Renault repair facilities as a
result of their dominance in the car parc

• In the field of motor claims the insurers play a dominant role which was
strengthened even more during the last couple of years of economic crisis

• Insurers enforce labour rates and parts price conditions through contracts

• However, steering is still in initial phases and true approved repairer
networks are just starting to be developed

• The introduction of a standard estimating tool increased the transparency




          Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
Example Audatex – a true benefit for the Romanian Market


• In   2006 the market started accepting electronic estimating systems with:
       • Importer / manufacturer recommended part prices
       • Labour times based on manufacturer guidelines
       • Manufacturer based painting
• Today, 9 out of the TOP 10 insurers require/accept a standardised Audatex
estimate from the repairers based on manufacturer information in order to
approve a repair

• Repair costs were thus reduced by 15%-20 %

• In return insurers guarantee jobs to repairers using Audatex – some shops
could increase their insurance driven business by up to 50 %

• Now both sides go for further process automation in the motor claims
business to reduce process waste and waiting times
             Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
Market facts - Poland


                                                                • Population: 38 mill.

                                                                • GDP/capita: € 9.187

                                                                • Car park: 17,8 mill.

                                                                • Insurance related claims: 1,9 mill

                                                                • % of insured vehicles: 99 %




        Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
Market dynamics - Poland


• Approximately 2,500 repair facilities service about 80% of the repairable
motor claims volume

•The top 5 insurers control more than 70% of the motor insurance business

• Insurers rely on the dealers for policy sales for new cars

• Price war on the policy side forced insurers to focus on the process and
severity control and thus look for closer ties with the repairers

• In the last 2-4 years concrete steps towards steering and building of
approved repairer networks can be observed




         Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
Market standards – Poland

There are standards which contribute to efficiency and customer
satisfaction


• Electronic repair estimating systems provided by Audatex and Eurotax
have been a standard in Poland for more than 10 years

• OEM parts prices are provided by the importers and are a standard for the
country

• The average repair estimate has been relatively stable except for a dip of
about 10% in 2008 and the first half of 2009 but recovered to the level of
about 5,100 PLN.




          Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
Market facts - Russia


                                                                  • Population: 140 mill.

                                                                  • GDP/capita: € 12.000

                                                                  • Car park: 34 mill.

                                                                  • Insurance related claims: 7,5 mill

                                                                  • % of insured vehicles: 95 %




        Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
The financial crisis of 2008/9 brought a shift in the market
dynamics

 Motor claims repairs came into the focus of everyone
 The Repairers
 • Repairs became a major source of revenue
 • Repair waiting times decreased to 3-6 weeks
 • Established closer relations with the insurers
 • Began using mutually accepted independent estimating tools to
 establish a “common language”
 • Focused on automating the workflow to get faster approvals and
 reduce waiting times




          Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
The financial crisis of 2008/9 brought a shift in the market
dynamics
 The Insurers
 • Drive to establish a “common language” with the repairers based
 on market realities
    • Part prices
    • Repair times and methodology
    • Painting

 • This allows for shift of repairs to independent shops and
 reduction of the number of disagreements
 • Centralization of claims processing standardizes the process and
 reduces the probability of fraud
 • Automation of the workflow with the repairers based on
 structured data instead of physical or electronic “paper” is
 expected to bring major enhancements to customer service and
 process efficiency
          Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
Market trends towards increasing efficiency and customer
satisfaction – Russia
We observe several trends
• Majority of insurers are transitioning to official electronic repair cost
estimating tools
• Interest is growing towards importer recommended part prices
• Manufacturer labour times are getting broad acceptance
• Work is going on to determine acceptable painting methodology
• Importers and insurers are strengthening relationships in the
claims area
• Preferred repair networks and steering are emerging
• There is a realized need for process automation based on
structured data rather than shuffling paper (be it physical or
electronic)

         Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
Summary and Outlook




     Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
Drive to increase efficency and customer satisfaction



CEE is behind Western countries in terms of clear
standards. Major steps to be taken are:

    • Adoption of a standard estimating tool
    • Management of labour times, local part prices and
      painting standards
    • Development of approved repairer networks and
      introduction of steering
    • Automation of the repair process between Work Providers
      and Repairers




        Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
Audatex will continue to invest in Eastern Europe & CIS



How is Audatex contributing to this improvement ?

    • Audatex has established teams in each country
    • Our teams focus on process optimisation for each client
    • We provide expertise to all countries in the region

    • We are excited by the opportunity to share our global
      knowledge to assist in the transition to higher standards
      and increased customer satisfaction in Uzbekistan




        Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
          “Fortune favours the bold.”
                                                                                          - Virgil




Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa
Solera – global knowledge, local focus

                                       Thank you




Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa

				
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