Establishing and Implementing Standards in Motor Claims advantages

Establishing and Implementing Standards in Motor Claims – advantages and benefits for the entire industry from a Romanian case study Dr. Richard J. Nathschlaeger Baku, July 7, 2011

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 fulltime 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

Audatex in Central and Eastern Europe Opportunity: Action: Market Development Audatex CEE Objectives • High economic growth region • Demand for electronic workflow partner • Customers have quality expectations • Meet and exceed customer expectations • Respond to dynamic market developments • Expedite global knowledge, local focus AX-CEE: Facts & Figures • HQ in Vienna • 100 employees in the region • Regional product development capabilities Voice of our customer • Big 5 insurers go CEE • Allianz, AXA, Generali, Uniqa, VIG • Manufacturers go CEE • VW, Dacia-Renault, Kia, Hyundai, Peugeot Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa

Audatex‘ Global Data Development Advantage. . . q With 200+ data developers in 6 DDC’s globally and growing… investing $90 m per year in software and database development. Ø Adding DDC’s in China, India and Russia within the next 6 -12 months Ø Increasing our partnerships worldwide with key and emerging manufacturers Ø Developing data where the vehicle is made, around the clock, around the world… DDC-FR DDC-US DDC-DE DDC-ES DDC-BR Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa Audatex Japan

Global data development: facts and figures The Audatex Global Database team maintains data for: q More than 45 years of history q More than 85 manufacturers q Customized for 53 countries q More than 36, 000 vehicle models q More than 179, 000 car options q More than 600, 000 graphics q. . . and featuring full repair logic! Audatex - Covering your data needs globally. Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa

Managing claims costs – Electronic Estimation Depending on the market development in CEE the insurer can benefit from using the electronic estimating engine Ø Currently productive availability in: Ø 18 countries in CEE Ø Next to come: Ø Turkey and Ø Further CIS countries after Russia and Ukraine Ø Analysis shows savings potential of approximately 8% to 10% of the total repair cost 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 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

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