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Consumers desire AI claims and repair experience, study shows

Solera has found that 76 per cent of consumers trust automotive claims driven entirely by Artificial Intelligence (AI).

The survey also identified crucial barriers to AI adoption for global car insurers, enterprise bodyshops, and Original Equipment Manufacturers (OEM) dealer networks.

According to Solera’s survey of its customers, most claimants have previous experience using automotive digital claims technology; 56 per cent had submitted a claim online and 51 per cent had used digital technology to track the status of a claim.

However, many more were seeking a fully automated experience with 72 per cent of respondents citing confidence in an automated claims and repair journey.

“We’ve reached a point where leading companies are placing top priority on adapting and integrating cutting edge technology to differentiate and optimise customer experience. Those that don’t, will face competitive challenges,” said Evan Davies, chief technology officer, Solera. “This survey simply underscores what Solera has known to be true for some time; automated processes have the power to increase customer satisfaction and even customer retention.”

Survey findings show that two-thirds (67%) of consumers would switch insurers for a faster digital experience and 73 per cent would choose an insurer using AI to process claims quicker.

In addition to the desire for their insurance companies to use modern systems, consumers are interested in these capabilities along the entirety of the automotive repair journey. More than three-quarters (78%) would favour a repair shop that provides more digital channels to quote, book, and track repairs.

There are challenges to upgrading legacy systems and, according to the Solera survey, those barriers differed among respondents. While cost was cited as the top barrier among both car insurers (52%) and enterprise bodyshops/OEMs (41%), a deeper analysis of the data showed that large insurers must overcome distinct obstacles compared to other market participants.

Large insurers cite time to market (62%), upskilling existing workforce (52%) and scalability (52%) as their largest challenges. Bodyshops and OEM dealers are more concerned with challenges related to systems and business stability. Thirty-five per cent of bodyshops and OEM dealers identified the constraints of legacy IT systems, unknown return on investment, and time to market as key challenges to incorporating AI.

“Wide-scale adoption of any revolutionary technology presents inevitable challenges and concerns for small and large businesses, which is why it’s even more critical that these companies invest with a proven and leading technology provider,” said Davies. “We provide real value to our customers by integrating AI and advanced technologies at all touch points of the claims workflow, from first notice of loss all the way through repair; something not all solutions have.”

Prior to Covid-19, the use of modern technologies, particularly those eliminating in-person contact, were considered a nice-to-have. Now, in many cases, it is crucial that businesses provide customers with touchless interactions.

Following the pandemic as a driver of digital transformation, the highest ranked catalysts for car insurers were growth strategies (36%), employee safety and remote working (34%), and customer demand for digital experiences (33%), according to Solera.

Bodyshops and OEMs cited employee safety and remote working and demand from customers to engage via online channels as main drivers (37%), with 36 per cent citing the desire to modernise the workflow.

“It is clear that organisations understand how AI can build resilience and improve customer journeys. Finding the right blend of data and technology is the key to optimising investments to unlock speed, intelligence, and efficiency at scale. Only then can our industry see the highest return on digitisation through a faster, more accurate repair claims process,” Davies concluded.