Forms Joint Venture in US Smart Card Market
Document date: Mon 20 May 2002 Published: Mon 20 May 2002 13:10:29
Document No: 264444 Document part: A
Market Flag: Y
Classification: Other
EGLOBAL INTERNATIONAL LIMITED 2002-05-20 ASX-SIGNAL-G
HOMEX - Sydney
+++++++++++++++++++++++++
eGlobal International Limited has today announced it has formed a
Joint Venture in the United States with InsureNet USA Inc to market
and sell its smart card-based motor vehicle insurance verification
systems. The new Company will be called InsureNet America Inc and is
a 50/50 Joint Venture arrangement.
The United States joint venture will see eGlobal supply smart card
and related technologies for the development of a new
fully-integrated software system to track motor vehicle registration
throughout the United States.
eGlobal Managing Director Gordon Chalmers said the new InsureNet JV
represents a significant milestone for eGlobal internationally.
He said the joint venture follows a series of live demonstration
programs of the new motor vehicle insurance verification system to
various Federal and State Authorities.
"Our initial involvement with InsureNet has allowed them to
successfully demonstrate their vision to clients," he said.
"Now we can move forward with the deployment and implementation of
the system, which both parties believe has significant potential in
the United States market. A number of State Authorities and insurance
companies are already looking very closely at the system and there
are many growth opportunities ahead."
The InsureNet system is designed to provide a fast, accurate and
unified method of verifying motor vehicle insurance in the United
States. Motor vehicle insurance is mandatory in almost every US
State, but unlike Australia, US Insurance Agents are not required to
report new policies to insurers in a timely manner and provide proper
binders to their clients.
Mr Chalmers said the delays and inaccuracies in reporting motor
vehicle insurance in the United States have led to major problems and
costs with uninsured driving and insurance fraud.
"Many drivers obtain insurance for only a short period then cancel
and continue to use once-legitimate documents, while many others
have fake documents or none at all," he said.
"Nationally, it is estimated that at least one in five US drivers is
uninsured at any given time and the losses sustained each year run
into the billions."
InsureNet aims to counter such problems by implementing a uniform
verification system based on smart cards containing vehicle
identification numbers and monitoring software that can interface
with insurers and law enforcement authorities.
eGlobal Chief Technical Officer Greg Craven said eGlobal will supply
a system of encrypted smart cards, matching readers and associated
communication technologies to InsureNet.
He said the new system will provides both instant and accurate
registering, updating, monitoring and verification of motor vehicle
insurance status and has enormous potential in the United States.
Mr Chalmers said eGlobal has undertaken a number of projects in the
United States in recent years, but the InSureNet project is the most
significant in terms of establishing a strong foothold for future
growth.
"The United States is a massive and highly-competitive technology
market, but one that offers tremendous opportunities for our smart
card technologies."
ABOUTeGLOBAL
Visit http://www.eglobal.net for further information.
Further Information: Gordon Chalmers
MANAGING DIRECTOR
eGlobal International Limited
(07) 3369 6899
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