Armada Data operates a unique outsourcing service exclusively for the automobile insurance industry through its Business-to-Business web site www.43r.ca. 43r.ca has established a new Industry Standard ensuring a more consistent, streamlined and cost-effective way of settling claims for insurance companies. Operational for three years, 43r.ca insurance services now generate over 60% of Armada’s total revenues and save insurance companies millions of dollars each year. By providing valuable automobile industry information to Canada’s largest insurance companies, 43r.ca dramatically lowers settlement costs on automobile total-loss claims with Waiver of depreciation / 43r endorsements. 43r.ca charges insurance companies a flat fee of $200.00 per claim with no net cost to the customer.
 
Waiver of depreciation / 43r Endorsement
The Canadian Automobile Insurance Industry offers a replacement or Waiver of depreciation / 43r endorsement attached to the insurance policy of over 90% of new cars sold in Canada. In cases of total-loss claims including accident or theft, this endorsement entitles the insured a settlement amount that will not reflect the depreciation affecting all new cars within the first two to three years. Insurance companies typically allow the endorsement to remain valid for up to three years with expiry rates varying from province-to-province. The endorsement permits the insurance company in cases of a total-loss to pay the insured the lowest of the following:
1. Original purchase price
2. MSRP on date of purchase
3. Replacement cost of a new vehicle of the same make/model

The Role of 43r.ca in the Insurance Industry
Prior to Armada’s 43r.ca entering the marketplace, insurance companies simply paid insurers the original purchase price of vehicles in cases of total-loss claims with a Waiver of depreciation / 43r endorsement. 43r.ca’s role in the claims settlement procedure of total-loss vehicles with the endorsement is to be an extension of the insurance adjuster process. 43r.ca receives the total-loss vehicle information from the insurance company and repackages the information, using its new-car pricing database and its new-car dealer database, into a one page Report. This Report clearly outlines the Original Purchase Price, the MSRP on the date of purchase, and the price of an actual new-car replacement vehicle. This replacement vehicle is the same make and model, similarly equipped, and includes a vehicle identification number (VIN), typically supplied from the insured’s original selling dealership. Due to continuous new-car pricing fluctuations and ongoing cash rebates and incentives offered by the manufacturers, 43r.ca has saved its insurance company clients in excess of $1,000.00 per total-loss claim by virtue of its ability to procure new-car replacement vehicles at prices lower than those originally paid by the insured.

The Market for 43r.ca
Currently 43r.ca is working with 14 of Canada’s largest insurance companies, including four of the top ten - ING, AVIVA, Pilot, and TD. Even though business generated to date has been predominantly Ontario-based, the evolution of 43r.ca’s services now allows its sales team to offer service nationally in a uniform and consistent manner. With its services having improved significantly since 2002, 43r.ca is experiencing a renaissance in new business opportunities. 43r.ca has started business expansion into Western and Eastern provinces with positive acceptance. In early February, 43r.ca signed a renewed and expanded agreement with ING Insurance Company of Canada that included a pilot program of 43r.ca’s service in the Province of Quebec with a tentative launch date of April 2005.