Kath Manion of Davies Group explains how technology is changing motor claims and outlines what the benefits to brokers could be.
The march of technology – both in-vehicle and analytical – is unstoppable. Brokers want to know what is happening and what it means for them and their clients.
Commercial fleets and retail insurers alike increasingly deploy telemetry to improve driver performance and reduce accident frequency. There is evidence that this is effective, particularly when integrated with effective feedback loops, whether via direct-to-consumer apps, or as part of a fleet performance management programme.
Manufacturers are deploying ever more sophisticated Automated Driver Assistance Systems (ADAS), again designed to reduce accident frequency and to minimise casualties when crashes happen.
Costs
Despite these positive developments, the average motor claim cost has been increasing and damage repair costs will continue to increase. ABI figures confirm that the average cost of a motor insurance claim, has risen to its highest level on record at £2,936.
For several years we saw vehicle bodywork technologies evolve, forcing repairers to invest in specialist repair facilities and processes. Now, repairers need to invest in safe systems for repairing electric and hybrid vehicles, and for refitting and recalibrating ADAS equipment.
These trends are set to continue, and brokers who manage repair deployments need to be able to provide platforms for the safe and cost effective repairs across the whole range of vehicles.
At the same time there is an increasing, and potentially bewildering, arrange of new and emergent technologies designed to streamline claims handling and improve customer experience and outcomes.
Current technologies range from claim reporting apps, through to the deployment of artificial intelligence and automation of routine claims processing functions.
The use of data to determine and measure the outcome of elements of claims has become routine. And still the technology pipeline promises more, including relatively sophisticated AI-based evaluation of loss and damage, and liability outcomes, which can support big service improvements.
Control
Clearly this can work in favour of brokers and their customers, so long as it is deployed in a controlled way that supports real customer service. For example, by identifying at first notification those vehicles that are damaged beyond economic repair, we can speed up total loss settlements and reduce vehicle off road time.
By streamlining and automating the recovery process, we can offer swifter conclusions to claims. Smart use of technology means we can free up skilled and experienced claims handlers to better support those customers whose claims need more skilled intervention.
Against this backdrop of change brokers should invest time in evaluating new technologies and to make sure they are suitable for their clients.
My view is that brokers will enhance their credibility among clients and prospects by engaging with specialist partners who offer a wide range of emerging technologies that are robustly tested, evaluated and which offer cutting edge MI.
By doing so brokers will be able to offer tailored solutions combining the best of technology with market leading expertise.
Kath Mainon is chief operating oOfficer of claims solutions at the Davies Group.