AutoWorks Int. Enters Insurance Software Market with ‘PartScan’

February 14, 2006

AutoWorks International Ltd. reported that Parts Direct (its wholly owned subsidiary) has fully designed, developed, and tested its PartScan software which is now available for ‘live’ installation and network systems integration with potential insurance company clients. The software has been extensively tested, to ensure efficient functionality at the automobile repair facility and wholesale parts distributor levels.

“Detailed discussions regarding Parts Directs’ on-line parts purchasing program have been very successful,” stated Brad Brock, president. “Live, in house product and services demonstrations have been requested by several automobile insurance companies and a provincially operated mutual automobile insurer in Canada which are keenly interest in implementing Parts Directs’ software and services.”

As a result, Parts Direct effectively becomes an on-line automated service bureau that reportedly allows insurance companies to benefit financially through the use of the PartScan technology and related services by purchasing the replacement parts from the company, at a significantly lower cost than otherwise available, through automotive repair facilities.

The replacement parts are ordered by PartScan directly from the wholesale parts distributor for the insurer and ‘drop shipped’ to the appropriate automobile repairer. PartScan’s accounting system then invoices the automobile insurer directly for parts purchased and services provided.

The size of the automobile repair industry in the United States is approximately $35.8 billion U.S. This represents the total industry sales by independent and franchised automobile repairers. In Canada, the automobile repair industry is estimated to be $2.8 billion CDN.

The automobile repair market encompasses the total costs incurred to repair damaged vehicles. Parts and labor are the two major components involved in vehicle repair, with parts comprising approximately 45% of the total cost of repairs. The aggregate value of the automobile replacement parts market in the United States is approximately $16 billion U.S. The Canadian market is estimated to be $1.26 billion CDN.

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