How are new technologies revolutionizing the auto insurance and repair industry?


Jason Verlen examines cutting-edge technologies that are transforming the experience of the collision repair and claims process

The automobile insurance and repair industry is undergoing an unprecedented transformation. Accelerated by the pandemic and the growing complexity of vehicles, the industry has accelerated its adoption of technologies such as cloud, AI and IoT to make the insurance claims and repair process seamless at all points of view. contact. These enabling technologies, coupled with changing consumer demands, are driving several trends that will forever change the claims and repairs experience.

Impact of increasing vehicle complexity

The percentage of vehicles equipped with advanced driver assistance systems (ADAS) features such as automatic emergency braking, parking assistance or blind spot detection is increasing. An estimated 10% of the one billion cars on the road globally at the end of 2020 were equipped with key ADAS capabilities. As more and more vehicles have been fitted with these features over the past decade, the number of parts in vehicles has nearly doubled. Today, an average car has 30,000 parts, and new vehicles contain more than 1,000 solid-state computer chips used for everything from interior lighting, engine cooling and battery management to monitoring. from tire pressure, to seat control and more. In the future, more sophisticated technologies such as AI, cameras and sensors in vehicles will develop, making insuring and repairing these vehicles increasingly complex and expensive.

New skills, technical training and tools will be needed to help reduce longer repair times and resolve claims

Beyond safety systems, electric vehicles (EVs) are driving changes in the industry. In 2021, the market share of battery-powered electric vehicles nearly doubled, capturing 2.9% of all new vehicle sales, up from 1.6% in 2020. Electric vehicles can offer huge benefits, but they are complex and can be expensive to repair. These advances present both challenges and opportunities for auto insurers and bodyshops. New skills, technical training and tools will be needed to help reduce longer repair times and resolve claims.

Mobile and AI are redefining the customer experience

In recent years, technology has helped both insurers and bodyshops propel themselves forward. Photo estimation, chatbots and text messaging have helped provide digital customer service models when needed, human-centric and where they are preferred.

Since the pandemic, customer expectations have evolved, now requiring more personalized and streamlined interactions. As a result, several advancements have been made in insurance and repair technologies to help create a more personalized experience for drivers.

Using technology, policyholders can easily submit digital photos of vehicle damage to insurers and repairers to start the process of estimating claims and repairs faster than with previous manual methods. And the data shows that consumers are eager to adopt it. During the pandemic, the number of consumers submitting photos of their damaged vehicle directly to repairers using this technology nearly doubled, with more than 20% of claims files using photo estimates resulting in an actual repair order. These photos are transferred through an integrated network of connections and advanced AI is applied. The experience is less about the mobile app and more about the network connections working behind the scenes that allow the consumer to drive the entire process through their phone, helping to automate the process in all circumstances.

Cameras and sensors are making modern vehicle insurance and repair increasingly complex and expensive

This example illustrates the strong push towards connected ecosystems that consumers can expect to see coming in the automotive industry. Currently, in the United States, one billion days pass each year between when auto claims are opened and when claims are resolved. It is essential to establish seamless connections between the tens of thousands of industry suppliers who must come together to resolve the hundreds of multi-party decisions resulting from a single complaint. This industry ecosystem covers auto insurers, collision repairers, parts suppliers, car manufacturers, lenders, towing services, and healthcare providers in the event of injury resulting from an accident.

This tech-based ecosystem has enabled the automotive insurance and repair industries to harness massive amounts of data. Data from the vehicles themselves, digital vehicle images, and historical claims and repair data can combine to enable more accurate decisions, increase processing times, and improve the overall experience for policyholders. The digitization of this industry is still in its infancy, although innovations are continuously advancing.

The adoption of telematics will further fuel digitization

Telematics has been an emerging technology in the automotive industry for decades, but its adoption is growing. This is largely due to regulation, consumer advocacy groups working to shift reliance from credit ratings to price insurance policies, and the increasing complexity of vehicles driving up costs in rates. insurance and vehicle repairs. Telematics data can be applied to a variety of usage-based insurance offerings, such as drive-through pay, and it can be integrated into new insurer business models that are more policyholder-centric and customer-focused. behaviour.

Technology has helped insurers and bodyshops move forward

How does this work? Telematics data collected directly from a vehicle can instantly detect an accident, trigger immediate calls for medical assistance if needed and begin the process of claiming with an insurance company, and in turn assist repairers help with repair plans and even ordering parts. Telematics data, shared between connected suppliers, speeds up communication between all parties involved, reducing repair cycle time and increasing customer satisfaction.

Steps to a fully automated future

The automotive industry is in transition. Over time, consumers, insurers and repair technicians can expect to see this technology continue to inform and expedite more decisions, allowing professionals to focus on delivering claims and repair experiences. thorough and personalized. With so much sophisticated technology at your fingertips, the potential for exceptional customer service is exponential.

About the Author: Jason Verlen is Vice President of Product Marketing at CCC Intelligent Solutions Inc.


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