Solera – a Global Company with a strong focus on Central & Eastern Europe

1. Establishing and Implementing Standards in Motor Claims – advantages and benefits for the entire industry from a Romanian case studyDr. Richard J. NathschlaegerBaku, July 7, 2011

2. Solera – a Global Company with a strong focus on Central & Eastern Europe

3. 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

4. Countries in CEE

5. 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

6. Effective management of claims processes

7. Largest part of premiums written goes to claims handling activities and repair costs Product development & Risk management Repair Sales Network development Claims handling Health Indemnification 0-30% + 5% 30-70% 5-10% + 10-15% 10-15% + + +

8. Repair value control - example Ukraine in 2009 • 30% use professional tools • 15% use less professional tools • 55% use “best guess” principle

9. Repair value control improvement • Completely exclude “best guess” principle • Use professional tools • Sign only professional body shops for partnership • They have knowledge & know-how • Exclude fraud • Control everything, even the smallest claims!!!!

10. Decrease of claims handling time • Creation of centralized Data Base • E-document turnover with partners • Check partners to prevent fraud

11. The Audatex global database factory

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

13. Global data development: facts and figures The Audatex Global Database team maintains data for: • More than 45 years of history • More than 85 manufacturers • Customized for 53 countries • More than 36,000 vehicle models • More than 179,000 car options • More than 600,000 graphics • ...and featuring full repair logic! Audatex - Covering your data needs globally.

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

15. Market Example: Romania

16. Market facts - Romania • Population: 21 mill. • GDP/capita: € 5.510 • Car park: ~ 5 mill. • Insurance related claims: 0.85 mill • % of insured vehicles: 85 %

17. 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

18. 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

19. Summary and Outlook

20. 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

21. 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

22. Solera – global knowledge, local focus Thank you