Auto insurance, repair shops, and OEM dealer networks are facing a major challenge. If you don’t want to lose your customers, you have to invest quickly and massively in digital processes. According to a recent study by the IT service provider Solera Holdings, 72 percent of consumers now want a fully automated damage and repair process supported by artificial intelligence when handling vehicle damage. Solera is a global provider of services to the insurance and automotive industries.
High willingness to change
Two-thirds (67 percent) of the study participants would even change their insurance for faster digital processing of claims. And three quarters of those surveyed (78 percent) would choose a workshop that offers more digital channels for getting bids, placing orders and tracking the progress of repairs.
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Providers who ignored this trend would have to face the competition, predicts Evan Davies, Chief Technology Officer at Solera. “With automated processes, customer satisfaction and even customer loyalty can be increased in perspective.”
Costs hold back innovations
Despite this pressure to innovate, many insurers and workshops are still having a hard time introducing new, digital technologies. Difficulties arise from upgrading legacy systems, with the associated obstacles differing according to the Solera survey depending on the sector.
While both motor vehicle insurance companies (52 percent) and workshops / dealer networks (41 percent) cite costs as the greatest obstacle, a more detailed analysis of the data revealed that large insurance companies face separate problems.
The insurance companies cite time to market (62 percent), staff training (52 percent) and scalability (52 percent) as the greatest challenges. Workshops and dealer networks, on the other hand, see the hurdles more in the systems and the economic stability of their business.
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