Claims Services

Challenge In September 1996, Hurricane Fran did more than $3.2 billion in damage on the North Carolina coast. United Services Automobile Association (USAA), one of the country's leading insurers of homes and automobiles, needed to respond quickly to a veritable flood of insurance claims.

Solution ADP set up automated claims estimate sites, including one in a converted garage on a military base. A team of ADP associates operated the sites 18 hours a day for three straight weeks. Using ADP's powerful and reliable claims estimating software, USAA's estimators were able to evaluate damaged vehicles, process claims, and provide settlement checks on-the-spot.

ADP's Claims Services, the leading claims information provider to the property and casualty insurance industry, offers a broad line of products to help clients accurately estimate auto damage, bodily injury, and property claims.

"Our industry survives by making wise choices to carefully manage risk. When it comes to timely and responsive service, we couldn't have chosen a claims solution partner better than ADP."

Our clients include 14 of the 15 largest auto insurance carriers, more than 250 additional insurance carriers and independent adjusting companies, over 7,000 collision repair facilities, and more than 3,600 auto parts recycling facilities in the United States and Canada. Revenue grew over 20% this year, and we succeeded in renewing all our major contracts.

In Estimating Services, virtually every product increased its market penetration. Our pen-based vehicle damage appraisal system, PenPro, operates on a PC laptop and has won broad market acceptance. This year, we installed over 1,500 new users.

Autosource, our total loss valuation product, grew nearly 30%. Shoplink estimating systems for collision repair facilities achieved 70% revenue growth in '97, and is now installed in over 7,000 auto body shops. Photolink is the de facto industry standard for digital imaging between repair shops, claims adjusters and insurance companies. It is used by 75% of the claims professionals who employ imaging system.

Over 3,600 auto parts recycling facilities and salvage yards now manage their inventories using ADP Parts Services, which helps the flow of parts information between insurers, body shops and parts recyclers. ADP is also the data collector for the ARA International Database. Updated daily, it contains over 10 million items and is the preferred resource for locating recycled auto parts. Under a recent agreement with the FTC, we have agreed to sell part of this service in order to create a more competitive environment.

AccuPro is our building and structure estimating product launched in January '97. It already has 1,650 installations, and is growing steadily. Left: Progressive Insurance Company uses ADP's Provider Bill Audit System for first and third party claims, has implemented ADP's managed care network in Florida, and is co-developing the injury Claim Evaluation (ICE) product. John P. Bindseil (left), Medical Claim Manager, Corporate Claims for Progressive and Martha Herbig (right), Director, Managed Care Networks for ADP Integrated Medical Solutions discuss the impact of the managed care network in Progressive's Tampa office.

Integrated Medical Solutions (IMS), which processes bodily injury claims arising from auto accidents, increased revenue 60%. Provider Bill Audit (PBA) is IMS's computerized system that reviews medical bills. PBA software is licensed by many major insurance carriers and is clearly the most successful of its kind.

This year, IMS became the first vendor to offer automated medical utilization review, preferred provider access and managed care services via an integrated product expressly designed for the auto claims market.

We further expanded our capabilities to claims adjusters by introducing Injury Claims Evaluations (ICE) as a complement of the PBA system. ICE helps adjusters to make fair and equitable settlements when pain and suffering claims are involved in third party auto liability claims.

IMS recently expanded further into workers' compensation bill review by acquiring Medical Bill Review Services. We will continue to sharpen our focus on major strategic opportunities that add value for our clients in the property and casualty industry. Below: ADP's Catastrophe Services assist clients by providing both staff and estimating equipment at vital disaster areas. Senior Account Representatives David Roberts (left), and Aaron DeGroat (right), demonstrate ADP's PenPro for Colin Caron (center), Managing Appraiser for Amica Mutual Insurance Company, who recently utilized ADP's Catastrophe Services, and is currently in the process of testing this latest generation of estimating software.