Operating Efficiency via Technology

As AutoOne continues its transition from start up to operational efficiency, having an in-house Information Technology team has been instrumental in driving a fundamental shift in our business process. During an organizational development spanning over five years, we saw many opportunities to improve how our underlying systems worked. However, it was more critical to ensure we could meet the demands of our rapidly expanding operation, and as a result we had to rely on some vendors to provide tools and services for our operation.

Today we have an organization that is fully equipped to manage all aspects of our business process. While vendor products and services are used when necessary, our own staff manages and directs those resources, resulting in a more effective and central technology solution for AutoOne.

In-house technological milestones

During the first quarter of 2007, our technology organization completed the migration from a vendor-based system for LAD/CLAD servicing to our in-house application. The result of this effort: AutoOne is now the only nationwide provider of LAD/CLAD services that has an end to end Assigned Risk Processing system.

In our Claims Organization two major initiatives went into production that are proving to be operational wins for the organization: a Claims Correspondence system and a Claims Imaging and Workflow system.

Claims correspondence system

The implementation of our automated Claims Correspondence system has reduced the amount of time spent on creating and retrieving claims-related correspondence. This enables us to greatly reduce the operating costs to support the completion and distribution of the forms and letters that are part of claims processing.

Today all letters and forms are consolidated into one central repository, enabling our claims teams to generate forms and documents by selecting the appropriate form(s) which results in automated data population, document triggering, archival of documents and batch printing.

Claims imaging and workflow system

In conjunction with the correspondence application, a Claims Imaging and Workflow system has been recently implemented. This allows claims to redesign its manual systems to support the current business needs within the initial stages of the claims process from notification to assignment and provide flexibility in design to support future strategic vision. The system provides not only imaging for all claims-related documents, but also the corresponding automated workflow that is required to process a claim.

Other functionality includes archival and retrieval to view any related images during and after a claim has been closed. With the implementation of the Imaging and Workflow system, paper dependency is to be greatly reduced if not completely eliminated.

Vendor-based technology and partnerships

While extensive milestones have been made to have an all-inclusive IT team, AutoOne understands the need to implement technology and solutions from outside sources when necessary. Our ability to manage the multitude of states and programs has been enhanced by including a vendor product, Duck Creek Technologies, which we use as our rating engine to significantly reduce the lead time required to implement rate changes for the auto insurance market.

Other efficiencies gained through technology include the implementation of a Payment Options portal. AutoOne has partnered with Bank of America to implement enhanced technology to electronically collect payments via ACH, EFT, on-line sweeps, debit cards and credit cards for all products including our AR clients. This new application provides more efficient payment processing and enhanced customer service for both our brokers and policyholders.

The following technological movements are significant investments in our business and operational capabilities that complement our business strategies in both claims and operations. Such enhancements ensure we will continue to drive down our costs, allowing us to more effectively manage through the Assigned Risk market peaks and valleys. For more information about how AutoOne uses technology to operate efficiently and best serve our clients, contact us at 631-547-2000 or visit http://www.autooneins.com.

Anthony Terracciano,
VP and Chief Information Officer