Autoglass has revealed details of its new claims management system, which it said could save the motor insurance industry as much as £100m each year.

The Bedford-based company said the system dramatically reduced the time spent processing and validating glass repair and replacement claims by determining the policyholder and claim details at the time of the first phone call.

It provides further savings by encouraging glass repair, when replacement is unnecessary.

Autoglass managing director Ian Carlisle said: "Claims processing should be a platform for competitive advantage for insurers. It should reduce the cost of administration, make them more efficient, and in that way provide better customer service."

The system works by validating each claim at the front end of the claims process, at the first point of contact between the insured customer and Autoglass. Autoglass then arranges the vehicle glass repair or replacement for the customer and invoices that customer's insurer electronically. This cuts out the need for printed documents and the ensuing paper chase.

Autoglass has secured access to most of the main insurers' databases. This provides them with the policy details of 11 million out of a possible 18 million insured drivers and allows them to verify a customer's policy details, over the telephone, using only a name and vehicle registration number.

Carlisle said the system reduced the billing error rate and the double handling of claims.

He added that insurers' online access to the Autoglass system allowed them a better understanding of their claims experience. Interaction with insurers was shifting from paperwork to adding value, reporting and understanding the market place, he said.