CCC Information Services, Inc., a wholly owned subsidiary of CCC Information Services Group (Nasdaq: CCCG – news), announced that its e-commerce business, to be called DriveLogic, Inc., will launch the first comprehensive, end-to-end Internet collaborative interchange and on-line applications for the automotive collision supply chain.

Leveraging CCC’s 20 years of industry experience, customer relationships and market leadership, these e-commerce solutions will be designed to significantly reduce the amount of time needed to get the driver back in his or her car after an accident. DriveLogic believes that improving efficiency in the supply chain could reduce the average claims cycle of up to 30 days by as much as half, greatly increasing customer satisfaction.

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“Our vision for DriveLogic is to create a new technology model for auto claims processing, using the best in today’s Internet, wireless, database warehousing and other technologies,” said Githesh Ramamurthy, Chairman and CEO of CCC. “This is an ambitious undertaking. But with the strong leadership of Pradip Patiath, who’s heading up DriveLogic, along with the talented team that he has recruited and a commitment to fulfilling our vision, we believe that we will bring significant new value to our industry.”

DriveLogic’s strategy is to combine a collaborative Internet interchange with multiple, integrated e-commerce solutions delivered via an application service provider (ASP) model. DriveLogic’s solutions will target the entire auto claims process, benefiting supply chain participants and ultimately consumers by increasing efficiencies and decreasing cycle time. The company believes that its solutions have the potential to address an estimated $10 billion in supply chain efficiency opportunity. By way of comparison, the U.S. property/casualty industry in 1999 earned $13.9 billion in operating income, according to the Insurance Services Office (ISO).

“The auto claims/collision repair industry today is a fragmented, information- and transaction-intensive business that could greatly benefit from DriveLogic’s comprehensive solutions,” said Patiath, President and COO of DriveLogic. Industry studies show that, of the nearly one-month average cycle time in this industry, a vehicle spends 14 to 18 days in the shop — yet the time needed to do the actual repairs on the vehicle is only about 18 hours. “DriveLogic’s Internet and wireless technologies will offer a way to shorten that cycle time by improving information flows and collaboration among related parties in the claims and repair process.”

DriveLogic’s solutions will serve automobile insurance companies, collision repair facilities, appraisers, rental car companies, glass companies and many other market participants. In addition, through their insurance companies, claimants will have on-line access to information about their claims, giving them a ‘window’ to the process that is not available today.

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DriveLogic’s collaborative interchange and ASP solutions will employ the latest technology standards and integrate with existing CCC networks and solutions, as well as the networks and solutions of other companies. DriveLogic’s initial solutions will include:

  • Internet Collaborative Interchange: This is an open, business-to-business hub designed to link parties in the auto claim supply chain and integrate the “plugged-in” e-commerce solutions. The open technology architecture will allow for the easy, seamless integration of third-party applications. The Internet interchange will serve as the “backbone” for auto claims, with portals and enterprise-quality applications provided for parties in the supply chain.
  • Intelligent Information Products: Mining vast databases of information, DriveLogic plans to provide a family of decision-making solutions targeted at improving process efficiencies within the supply chain. DriveLogic expects these solutions to deliver targeted, real-time predictive information to the value chain, allowing for additional severity and loss adjustment efficiencies.
  • Intelligent Resource Management Products: Using sophisticated artificial intelligence and wireless technologies, DriveLogic expects to provide a resource management solution over the Internet for efficient scheduling of appraisals, repair jobs, towing, rental cars and other related activities. Wireless capability provides great speed and flexibility, permitting workers in the field, for example, to send information to and receive information from the interchange.
  • Parts Procurement: DriveLogic’s interchange will also integrate with ChoiceParts, the web-based parts procurement and distribution marketplace created by CCC, ADP Dealer Services Group, ADP Claims Solutions Group, and Reynolds and Reynolds Automotive Division earlier this year. ChoiceParts’ virtual parts exchange is designed to serve the multi-billion dollar auto parts market with unprecedented speed, accuracy, knowledge and convenience.
  • Repair Portal: DriveLogic plans to create a robust portal featuring access to industry information and shop marketing and claims status tools.

    • DriveLogic is using the ASP model for its flexibility and cost-effectiveness for users. “Other industries have already endorsed the ASP model, as demonstrated by Microsoft’s recent decision to offer its Office suite of products in a similar fashion,” said Patiath.
    “The ASP model has several advantages for our clients, including focusing and leveraging information technology resources on only the most critical and core business functions.”

    DriveLogic decided on a comprehensive approach as a way to gain maximum supply chain efficiencies. “Other solutions providers are only addressing parts of the supply chain,” said Patiath.

    “DriveLogic plans to be the first to put the full-spectrum solution together, through a combination of strategic alliances and in-house development.”

    DriveLogic has the unique advantage in the market of leveraging CCC’s connectivity platforms, which already process some 750,000 auto claims-related transactions per day. These connectivity solutions have been developed and implemented over the past 20 years, a clear competitive advantage. DriveLogic’s goal is to handle a significantly greater volume of transactions – up to triple the number that CCC handles today.

    “DriveLogic takes us to the next level in solutions for the auto claims industry,” said Ramamurthy. “We have market-leading tools like Pathways®, and a new generation of Internet-based tools like the TL2000 web-based Total Loss product and Claimscope Navigator. The DriveLogic solution provides innovative yet complementary technology that will extend added value to the industry.”

    DriveLogic today has a 45-person staff in addition to the full support and resources of CCC dedicated to the creation of the interchange and wireless solutions. The company is growing rapidly and expects to have a 100-person staff by the end of the year.

    Well-Positioned to Succeed

    DriveLogic was incubated by CCC, the leading supplier of solutions to the auto claims market. Founded in 1980, CCC has a built a strong position as a provider of auto claims software products and services, with assets and relationships that provide a formidable point of entry for DriveLogic. These assets and relationships should serve as the foundation for leadership in the B2B e-commerce solution space for this industry.

  • Business and customer relationships: CCC’s business relationships and customer base include 350 insurance companies, over 13,500 collision repair facilities, over 10,000 insurance appraisers, 4,400 auto dealers, 14 rental car companies and a variety of other supply chain participants. The company also provides data to the National Insurance Crime Bureau.
  • Existing networks: CCC has existing connections to customers in the supply chain to provide total loss valuations, assignment/estimate/supplement transfer and rental car assignments. CCC is the leading communicator of auto claims transactions in the country, handling more than 200 million transactions per year.
  • Existing applications/solutions: Both CCC’s Total Loss valuation product and estimating product have leading market share positions. CCC also has market-leading Internet-based digital imaging systems, shop management systems for repair facilities, and various management information products for insurers.

    DriveLogic anticipates launching its interchange and first suite of Internet and wireless applications in Fall 2000.

    About DriveLogic

    DriveLogic is a wholly owned subsidiary of CCC Information Services Inc. focused on providing Internet and wireless-enabled technology solutions to the auto claims and collision repair industries. By combining these solutions with the industry expertise, customer relationships and market leadership of CCC, DriveLogic aims to optimize supply chain efficiencies, bringing value to parties in the entire supply chain. For more information about DriveLogic, contact Michael Roberts at DriveLogic, 312-228-8278, or contact Rich Ringer at HLB Communications, 312-649-0371, or visit the DriveLogic Web site at www.drivelogic.com.

    About CCC

    CCC Information Services Inc., headquartered in Chicago, Ill., is a leading supplier of advanced software and communications systems to the automotive claims industry, including information and network services for a wide variety of claims management solutions. Its value-added, technology- based products and services increase efficiency and facilitate communication among more than 13,500 collision repair facilities, 350 insurance companies, and a range of business partners. For more information about CCC Information Services, visit our Web site at www.cccis.com, contact Jeanene O’Brien at CCC Information Services Inc., 312-229-3083, or contact Rich Ringer at HLB Communications, 312-649-0371.

    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 statement, including any statement regarding the intent, belief, plans, or current expectations of the companies or their management, are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those forward-looking statements, and startup businesses are inherently uncertain. The company has based these forward-looking statements on information currently available and disclaim any intention or obligation to update or revise any forward-looking statement.

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