KUALA LUMPUR (Aug 19): Dagang NeXchange Bhd (DNeX) will be spending about RM2 million in its collaboration with Audatex Malaysia Sdn Bhd to offer a system for automotive insurance repair by the first quarter of 2019.
Dagang Net Technologies Sdn Bhd, a wholly-owned subsidiary of DNeX, signed a memorandum of understanding with Audatex Malaysia to provide a comprehensive motor parts, prices and repair times database system for automotive insurance repair.
The collaboration includes the setting up a computerised repair estimating system and vehicle identification number (VIN) identification backed by a powerful database, which contains automotive repair times on specific brands and models to complement the current market situation.
"We are excited to collaborate with Audatex, which is a leading global provider of collision repair estimating and claims solutions, to enter into provision of this system to the automotive insurance industry. This will be an expansion of our existing e-services offerings into vehicle and transportation clearance management cluster," DNeX executive deputy chairman Datuk Samsul Husin said.
He added that based on the latest statistics, there were about 500,000 of accident cases and DNeX hoped to capture about 20% of this market.
Samsul explained that the revenue for DNeX will be based on the number of transactions using the system provided.
The value of the accident claims was about RM8 billion last year, and DNeX said insurers could save about 20% by using the system, which improves efficiency for accident claims.
Audatex APAC managing director Brian Seldess also agreed on the efficiency, emphasising the global presence of Audatex could help to bring some of the best practices in the automotive industry all over the world into Malaysia.
"As a world leader in automotive data and solutions, it is of strategic importance for us to partner with a strong local player and Dagang Net certainly meets this requirement.
"Together we are set to optimise customer satisfaction and improve efficiency of the claims process that brings value to insurers, vehicle manufacturers, car owners, regulators and policy makers in the after-sale and automotive insurance business," Seldess said.
As of writing, DNeX's share price was up by 1.23% or 0.5 sen to 41 sen with about 1.3 million shares traded.