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First Notice Systems Releases Vendor
Referrals 2.0

Powerful, rules-based engine reduces costs for insurers and offers valuable services to customers at time of loss

BOSTON, Mass. — June 24, 2002 — First Notice Systems, the leading provider of claim reporting solutions to the insurance industry, announced today the immediate availability of Vendor Referrals 2.0, the next generation pathing engine intelligently offering third-party services to an insured at the time of loss report. This release builds on previous company technology to offer expanded vendor functionality and flexibility to clients of ClaimCapture™, the company’s Web-based claim intake platform.

When an insured calls to report a loss, they often need help returning their property to pre-loss condition or in locating services such as towing, car rental, or auto body repair. Usually with little or no previous experience from which to draw, an insurer’s customers eventually find vendors spread across spectrums of price and quality of service. Vendor Referrals 2.0 offers insurers a way to control these costs while simultaneously providing their customers with a more consistent, higher level of service.

"Initially, our clients are attracted by the cost savings," said Will Fulton, president of First Notice Systems. "Client savings, typically in excess of $200 per claim, are gained by rapidly mitigating high-severity losses and by managing costs through the use of vendors that have willingly subscribed to specific cost-containment practices. But our clients also see the natural by-product of better service. Their customers are given high quality, local referrals—at a stressful time when they often have no idea where to turn."

Vendor Referrals 2.0 Overview

One major component of the ClaimCapture vendor program is the initial eligibility screening of claims for follow-on action. As information is gathered during a call, the system analyzes whether or not the caller qualifies for vendor services. This process is based on the type of loss, policy coverage, and eligibility rules established by the client. The other major component is the selection of the vendor. The ClaimCapture vendor module walks through and monitors a series of decision points:

• is the caller eligible for a given service?
• is a vendor of the appropriate type in their area?
• are they interested in participating in the program?
• will they ultimately decide to accept/decline a referral?
• if accepted, which vendor will by utilized?
• if declined, what is the reason for declining?

Managing the Program

To increase success rates among its clients, Vendor Referrals 2.0 features a flexible, rules-based engine designed to meet each client’s unique needs and be able to change as rapidly as conditions do. Defining a vendor network, for instance, is as easy as importing that client’s list or utilizing the network of vendors populated by First Notice Systems’ partners. A hybrid model is also possible whereby clients rely on their own negotiated lists for the majority of claims and only tap the First Notice Systems network to fill in areas where their own network does not reach.

ClaimCapture goes a level deeper, giving clients the ability to tailor vendor selections to particular circumstances, exclude problem vendors, insert new vendors, and prioritize the rotation of vendors (or nested networks of vendors) in each loss situation. It also provides reports to measure success and improve performance on an ongoing basis.

"Many insurance companies already have successful vendor relationships in place," said Jim Leightheiser, vice president of product marketing for First Notice, "but the ClaimCapture referral engine really increases their effectiveness. One, it’s integrated with reporting the loss so we streamline the process and direct more customers to the network. And two, the module is so powerful and account-specific that clients can just drop in their vendors—whether they be auto body shops, hotels, or whatever—and then fine-tune the list as needs arise."

About ClaimCapture

ClaimCapture is a Web-based intake platform that is customized for each client’s first notice of loss (FNOL) or first report of injury (FROI) process. Losses can be taken via phone, fax or Internet and are directed through an intelligent rightsizing process where only relevant screens and questions are presented. At the conclusion of a report, the sophisticated distribution module in ClaimCapture sends loss notifications in a variety of formats (EDI, XML, fax, email, US Mail) to all stakeholders in the claim. Originally designed and developed for First Notice’s high-volume, internal call centers, ClaimCapture is now available for use on an ASP basis in clients’ own captive call centers.

About First Notice Systems

Founded in 1993, First Notice Systems (www.firstnotice.com) is the premier provider of claim reporting solutions to the insurance industry. First Notice helps carriers, third-party administrators and self-insureds receive first notice of loss through a combination of full call center outsourcing, online claims reporting services, and claims reporting software. With headquarters in Boston, MA, First Notice Systems, Inc. is a wholly-owned subsidiary of Concentra Inc., the comprehensive outsource provider for containing healthcare and disability costs.