Aon Subsidiary, Combined Insurance Company Of America, To Transform Personal Disability Claims Process With LAVA Integrated Claims Environment Deva

LAVA's Y2K compliant application selected for personal disability claims processing at AON group insurance subsidiary

Toronto, ON - 1998-07-28 - LAVA Systems Inc. (TSE:LVA) today announced that Combined Insurance Company of America (CICA) UK operations, based in Kingston, UK, had approved a contract for a complete business process solution to achieve significant improvement in the firm s Customer Service and Claims Operations. The contract, worth approximately $CDN 700,000, will see LAVA install a standard claims processing DEVA, including workflows required to process personal disability claims. The solution is designed to improve customer service levels and reduce operating costs. The system will be implemented using the LAVA Mentor consulting methodology.

"We run a high-volume operation, with a large percentage of the documents we send out being returned to us with additional information, and by using LAVA s volume scanning system we should be able to index the majority of this incoming documentation without operator intervention," said Jim Kennedy, Claims Manager, CICA, UK. "In addition, we were impressed by the ease of operation and the functionality of the application; both of which are clear evidence that LAVA understand our business," he added.

"This contract is the first of many that we hope to announce with leading financial institutions. Our claims processing solution has been tested and proven at numerous insurance firms. Our experience combined with our ability to build on and enhance CICA s existing line of business systems served us in good stead in winning this contract," said Robert Terry, Chief Operating Officer of LAVA Systems. "We re confident that our solution, while providing all the functionality requested by CICA, will also offer the potential for future enhancements as its business changes to face an increasingly competitive marketplace."

Similar to many firms, in both insurance and other vertical markets, CICA required that all solutions submitted for tender be Year 2000 compliant. To this end, LAVA, having conducted extensive Year 2000 compliancy testing based on an internationally recognized definition of Year 2000 conformity requirements, passed all benchmarks.

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